Nordstrom Rack

Background

Nordstromrack.com | HauteLook – the online, off-price division of Nordstrom – is unique in the online, off-price landscape consisting of two sites with different shopping formats (flash sales and persistent) operating on the same technology platform. The e-commerce sites and their respective apps feature an ever-expanding catalog of Nordstrom Rack apparel, accessories, and home as well as HauteLook’s limited-time, sale events offering top brands in fashion, accessories, beauty, and home all up to 75% off.

The Problem  

Nordstromrack.com had been working with a number of digital partners to achieve a key performance metric: a lower Cost Per New Buyer (CPB). However, they consistently came up short of their desired ROI. They realized that they needed a new approach and a new marketing partner to generate increased sales and brand loyalty.

They focused all their efforts on one objective:

  • Hit a specific CPB benchmark
Why YellowHammer?

Nordstromrack.com researched the exact CPB which, if met, would drive a positive ROI. They set out to find a partner who could help them reach it. They knew this ambitious new goal would be a challenge, and they lacked confidence in their previous digital marketing partners.

Meanwhile, YellowHammer had been working with Nordstromrack.com’s sister company, Hautelook, and had been producing incredible results for the flash-sale driven site. Nordstromrack.com began testing Facebook advertising through YellowHammer. The results? Consistent performance above Nordstromrack.com’s monthly goals.

Approach

Leveraging first-party data, YellowHammer created multiple look-alike data sets based on previous Nordstromrack.com purchasers. The team tested a wide variety of strategies across Facebook and display to find the best-performing combination of demographic targeting, creative, and inventory. Facebook returned significantly higher performance over display, so the campaigns were optimized to focus on the Facebook ad suite (right-hand side, mobile and desktop newsfeed, carousel, and canvas ads).

Featuring compelling products was an integral component of YellowHammer’s success with Nordstromrack.com. YellowHammer found a number of unconventional, yet successful tactics for reaching the right customers, discovering new audiences with an appetite for Nordstromrack.com’s products in the process. With YellowHammer’s multi-variate testing engine, the team was able to test hundreds of products and concentrate on the ones that clicked well and yielded the most transactions.

Results

The four-plus year partnership between Nordstromrack.com and YellowHammer resulted in impressive marketing sales figures. YellowHammer not only surpassed the client’s Cost Per New Buyer goal, but they also drastically increased their monthly purchase volume and purchase revenue. Some of the most remarkable results came from a two-year period between 2014 and 2016:

%

Decrease in Cost Per New Buyer

Increase in monthly purchase revenue