Revolutionizing luxury with data-driven marketing solutions

When it comes to thrift shops and secondhand fashion, people rarely think of high-end, pristine luxury goods. That’s all changing, thanks to retailers like The Luxury Closet, that mix affordability with luxury labels.

When it comes to secondhand fashion, “The Luxury Closet has one very unique advantage,” says Pablo Durante, Chief Marketing Officer. “Being based in Dubai, we can tap into the closets of some of the richest people in the world.”

In the past year, The Luxury Closet has become a global force, reaching fashionistas across the world. Recently, the retailer raised $11 million in its growth round and acquired Guiltless, a Hong Kong-based eCommerce site. With an impressive 8.2 on TrustPilot, The Luxury Closet is beloved by its customers.

Building customer loyalty quickly

Right now, The Luxury Closet is focused on accelerating its global growth, while building out its local presence in the Gulf countries (GCC). What works for one region, doesn’t work for another.

“You need to build the trust, not only of your brand, but of eCommerce in general,” says Pablo of the GCC region, where eCommerce is not as developed.

Winning over loyal customers is key. To do this, The Luxury Closet uses data to target the right audience and build customer lifetime value.

“Considering we are a small start-up, we need to be very lean,” says Pablo. “We don’t do projects that give a result in two years, we are trying to do something that will have an impact in two months.”

Data-driven personalization that keeps users hooked

By using data, The Luxury Closet is able to make smart decisions about what will resonate with customers and keep them coming back for more.

“We are focusing right now on personalization and recommendation,” says Pablo. “We have more than 30,000 items on our site. I need to ensure that if you look for something, you find what you are looking for.”

Data-driven marketing tools take out the guesswork of what will work and what won’t. Sophisticated tools like Criteo offer a deep dive into different customer behaviors.

“I can see in a very smart way if Criteo is bringing me existing customers or new customers,” says Pablo. “So, we have the data in real-time and it helps us to budget our spend efficiently.”

“If you think about this job 15 years ago, what you do now with two people, you needed ten people. All of the machine learning is helping us to do more with very lean teams.”

Today, Criteo is one of The Luxury Closet’s main channels for driving orders and revenue in their primary market of the United Arab Emirates.

“Criteo is a very valuable partner, especially in the GCC region,” says Pablo. “In the beginning, we started using Criteo just for retargeting, and step by step, we expanded to use it for different solutions.”

Criteo helps The Luxury Closet to grow their audience with a web traffic campaign. This then helps grow orders from the campaign month-over-month in both new and existing markets. A conversion-focused campaign then reengages lapsed customers, bringing them back to the site.

“We’re trying to give a memorable experience to our customers. My main goal is to make people not only happy about the product but happy with the experience.”

Ready to drive more traffic and discover new customers? Check out how Criteo can help.