Chapter 17 - Advertising and Public Relations

Since Gilt Groupe is an E-Commerce members only business model, their advertisement/marketing is featured solely through social media platforms and the company's very own website. By being a members-only business, the company can gather very unique and vital data on each customer. According to Gilt's CEO Kevin Ryan, the company sends out 2,000 different versions of its daily newsletter to its 5 million members based on their personal preferences. Its data also provides Gilt with the Holy Grail in advertising by quantifying data on the spending patterns of loyal, wealthy nearly recession-prof consumers. 

Other department stores looking to reach out to buyers can't access these type of big-spending consumers the same way. Ryan states, "A Sak's or Macy's can't do this because they do not have a membership-only model. The only people who can do this area are flash sales types and Facebook."  

But Gilt's data is more valuable than Facebook's for this particular breed of advertisers, because Gilt.com doesn't have to guess what people's spending habits are. Once you are a member, Gilt can gather precise information due to a member first and last name, age, home address and what type of things they purchase. Every time a customer makes a purchase on the website, the company stores this information and will adjust how they market and advertise to that individual. For example, if I start to buy more ties and suits, they will advertise an email newsletters to my liking. 

Below is a short 3 minute video the company created to show its Public Relations.