Fabletics began as an online-only retailer in October 2013, opening its first brick-and-mortar store two years later. “We wanted to make it about community, product and lifestyle first, then bring customers in via digital advertising,” said Netral.
Fabletics is proudly agnostic about how and where its customers shop: “We’re not using the web site to drive people into the store; we aggregate all our business, online and offline, and figure it all into our financial results,” said Netral.
The stores, which average 1,800 to 2,200 square feet, have proven to be another great data source. “More than 40% of the people coming into the stores are members, so we can track their one-to-one interactions in the physical environment,” Netral noted. Fabletics places iPads outside the store fitting rooms that scan the items shoppers bring in to try on: “We know the customer’s name and the items she has selected,” he said.
Adding a brick-and-mortar channel has been positive for Fabletics. Customer lifetime purchases are 142% higher for omnichannel customers vs. online-only shoppers, and Net Promoter Scores are 53% higher among the omnichannel shoppers.
Fabletics uses its brick-and-mortar data advantage to sharpen online offerings: “We use the store data, including item-level conversion data, to help drive digital decisions, for example around merchandise designs,” said Netral. “On the site, we will feature items with higher conversion rates more prominently, and our upsell recommendations are powered by the physical experiences in the stores.”