As Timberland’s revenue was flat from 2006 to 2012 and they were losing market share in the Americas, they collected data from 18,000 people across eight countries and were able to diagnose its problems and zero in on its ideal customer.
Their sales surged 15 percent in the most recent quarter, and its sales have improved in every global market and every product category, delivering a fatter profit margin.
And even though this makeover is coming at a time when consumers are price-sensitive, they cut drastically on promotional pricing. In 2013, only 36 percent of purchases on their web site were made at a full price. By 2014, that figure was up to 88 percent.
At the moment, 70 percent of their direct-to-consumer business in North America is in outlet stores. In five years, by 2019, the company expects only 49 percent of that business will come from outlets as it increases its online sales and nearly triples its full-price store count.
Question from Nundinae: Does your ecommerce strategy include defining your ideal customer? Are you focusing on discounted price to sell online?
Full article on The Washington Post