Neiman Marcus driving online growth
Luxury department store operator Neiman Marcus Group is out in front when it comes to boosting digital growth.
That’s according to a study from SimilarWeb, “Neiman Marcus Boosts its Digital Brand Loyalty,” which found that luxury brands are coming out ahead with online traffic with the help of more focused targeting among their audiences — customers who are in search of merchandise with premium distinction
While these efforts have earned Saks Fifth Avenue and Bloomingdales stable online traffic. Neiman Marcus’ performance has been particularly impressive. The retailer’s online traffic jumped 17.9% when comparing May 2017 to May 2018. The site saw an improvement of over 50% in direct traffic while seeing relative stability, as well as minor increases, across other channels.
Neiman’s performance efforts eclipsed Macy’s, which was stable from May 2017 compared with May 2018. Meanwhile, Sears experienced a drop of 28.8% in traffic for the same timeframe, alongside decreases of 23.6% for J.C. Penney, and 13.9% for Kohl’s.
“This speaks to a central problem for these companies – identifying the right avenues to growth with such a wide product range,” said Lena Young, communications manager, SimilarWeb.
Paid search helped drive substantial increases in Neiman’s site traffic, helping the retailer more than double its share of traffic. In addition, the department store retailer was bidding on a little over 4,500 keywords. Looking at the March to May period of 2018, the number of keywords that neimanmarcus.com bid on increased substantially to over 6,500, according to the study.
Non-branded key words are also playing a role in this growth. In the same March to May period in 2016, non-branded terms made up 25% of the brands paid search traffic. During the same time-frame in 2018, non-branded keywords made up 56% of the brand’s paid traffic. Many of the non-branded search terms were widely luxury oriented, like Gucci, Burberry, Givenchy and more.
“One of the biggest challenges for mid-range department stores to overcome is figuring out how to target users effectively with such a wide range of goods,” said Young.
“For Neiman Marcus, the luxury perspective has simplified this process, enabling them to channel traffic from keywords that are already identified with premium products,” she added. “By utilizing this strategy, Neiman Marcus has made an effective move to own their brand awareness online while simultaneously improving their digital luxury presence.”
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