boost in e-commerce sales
increase in sales
increase in full-price sales
Stuck in a cycle of emails, flash sales and discounts, TUMI realized they needed to stop the cycle to boost revenue in a more sustainable way.
Without a single customer database that unified all data sources, TUMI’s digital team couldn’t understand the multichannel impacts of their marketing campaigns, nor optimize their discounting strategy so that promotions on one channel would not cannibalize another.
During its first year using AgilOne, Tumi grew full-price sales by 28.5% while cutting 40 promotional days from its annual calendar. Moving away from a heavy discounting strategy resulted in:
- 6.7% increase in sales
- 30% boost in e-commerce sales
- 13.3% increase in gross margin growth
- 23.6% increase in operating margin growth
Owned by Samsonite and based in South Plainfield, New Jersey, TUMI manufactures high-end suitcases and bags for travel. The company also supplies accessories including belts, wallets and electronic equipment, and its products are available at department and specialty stores, in addition to TUMI stores around the globe.
Like many retailers, TUMI relied on a marketing strategy centered on batch-and-blast emails, flash sales, promo codes and basic retargeting. But the company’s digital team realized that, as a premium brand, the constant sales were having a far-reaching negative effect throughout the organization, essentially chopping the legs off their retail partners by training customers to wait for an online sale. They realized they needed a platform that could bring together the massive amounts of siloed data they were collecting, allowing them to enable relevant omnichannel experiences for customers.
Without a true data center, TUMI’s digital team couldn’t simultaneously view online and offline behavior and purchase patterns. They wanted to build alignment across functional areas and use a customer-centric focus to build consensus, but realized that they needed to first organize their data so they could personalize messaging to achieve quantitative wins. The company’s driving force was the desire to improve customers’ lives by making customer support calls shorter, delivering better website experiences and creating more meaningful in-store visits. TUMI’s digital team wanted to leverage data to help them improve everything from their merchandising to operations and technology, but weren’t sure how to proceed.
TUMI used Acquia’s AgilOne platform to personalize its outbound marketing emails, chats and push notifications, improving customer experience and service and informing the company’s digital strategy. TUMI pulled data from customers’ email activity, social media activity, website behavior and browsing/search behavior across the web to help offer appropriate product recommendations. Additionally, the platform integrated POS and warranty repair data, giving in-store associates and customer service reps a 360-degree view of the customer.
As a result of this data, TUMI is able to deliver personalized web experiences based on AgilOne’s single customer profile. TUMI’s website algorithm dynamically changes what people see first, depending on their data history. For example, if a logged-in shopper has a suitcase in for repair, the website automatically gives the shopper an update on the status of the item being fixed. Additionally, the company has better context around where customers are in the purchase path, allowing the digital team to send a single, more impactful email in lieu of its previous multi-email approach. TUMI’s digital team is also focusing on ad placements that target customers with the highest predicted lifetime value. Lastly, customer data also helps inform inventory buys and order fulfillment, tracking who’s buying what and where.
During its first year using AgilOne, Tumi grew full-price sales by 28.5% while cutting 40 promotional days from its annual calendar. Moving away from a heavy discounting strategy grew sales by 6.7%, with a 30% boost in e-commerce sales and a 13.3% increase in gross margin growth. Operating margin growth was boosted by 23.6%, and all of this happened during a time when the company actually sent 40 million fewer emails.