HSN is Crushing Retail with 3 Big Innovations
HSN’s sales are soaring.
The TV shopping network’s sales grew 14% in 2014, compared with 4.1% growth across the retail industry.
HSN’s growth, which is largely driven by its apparel and jewelry business, comes at a time when Americans are increasingly spending money on other categories, like healthcare.
We spoke to HSN Inc. CEO Mindy Grossman on how the retailer is thriving in this challenging environment.
1. Customizing online experience.
About half of the HSN’s business is now from online shopping. HSN has been working to make every customer’s experience different, Grossman said. The brand tailors product offerings based on the customer’s browsing history and past purchases. Even marketing is tailored toward what the customer has responded to in the past. For example, customers who bought something after receiving an email are more likely to get emails from the company in the future.
2. Offering exclusive products.
HSN wants to make sure that other retailers don’t carry its products. More than 70% of the items the company sells are exclusive. Grossman said that this approach helps the retailer avoid the promotional strategy that many retailers experience. “It’s important to ask yourself ‘why would the customer want this product,'” she said. “Offering exclusive products gives you a new value proposition, it can motivate the customer to buy what you’re selling.”
3. Changing the digital experience.
HSN has poured resources into redesigning its website. The retailer has also created niche online shops for categories like vitamins and closet organization. “Shoppers can get overwhelmed, so curation is important,” Grossman said. HSN also has personalities like Colleen Lopez curate items online for shoppers.
This article was written by Ashley Lutz from Business Insider and was legally licensed through the NewsCred publisher network.