Barneys New York Predicts Your Shopping Future: Leverages Proclivity Systems to Drive Marketing and Maximize Sales

Business Wire, April 1, 2008

Proclivity optimizes revenue by predicting online consumer shopping habits with pinpoint accuracy

NEW YORK -- Proclivity Systems, the developer of solutions that provide predictive insight into consumer behavior, announced today that Barneys New York (Barneys) has chosen the revenue optimization platform and consumer behavior bank, Proclivity, to help drive its online marketing campaigns and maximize sales. Proclivity provides Barneys with profound knowledge about customers' shopping interests, purchasing likelihoods and level of expenditure for any potential offer. Barneys leverages Proclivity Systems' flagship product, Proclivity Mail[TM], to capitalize on the consumer behavior bank's intelligence to accurately forecast consumer purchasing behavior around targeted email campaigns.

Barneys New York, a mecca for discerning fashionistas and clothing connoisseurs, operates nine flagship stores, 15 coop stores and 13 outlet stores, as well as its website, www.Barneys.com. Proclivity will enable Barneys to accurately forecast ROI for a variety of campaigns and steer its endeavors towards programs with the highest revenue potential.

"Proclivity is a valuable resource for our marketing initiatives. We tested multiple campaigns to prove the efficacy based on products, themes, and customer segments," said Larry Promisel, vice president of e-commerce for Barneys. "The Proclivity engine delivered dramatic results by analyzing multiple customer activities and indexing the level of engagement. This enables us to manage our communication strategy and send relevant, targeted messages to sensible populations. Results to date have yielded double the average open rate and click through rate and up to a 30 fold increase in conversion. This not only increases our ROI but also provides the level of service our customers expect."

Sheldon Gilbert, CEO, Proclivity Systems said, "Barneys New York is recognized as the premiere store for luxury apparel and high-end accessories. Barney's decision to select Proclivity is more than just a stamp of approval; it is a true testament to the power and versatility of our revenue optimization platform. We look forward to helping Barneys deliver highly relevant information that customers truly value and maximize profits with each campaign."

Gilbert continued, "Proclivity has been able to increase revenue by more than 25% for email campaigns across the board with our customers. These are astounding lifts in revenue that represent actual increases in revenue and profit and not just theoretical extrapolations of potential gains that are common in the market which has led to years of skepticism on the promise of wide-scale predictive marketing. This is even more significant when considering how these major increases in revenue, by virtue of re-marketing the right offer to the right customer at the right time, is that much of this is mined from data which is continuously collected by online retailers only to be thrown out or archived. As such, they are leaving millions in additional revenue on the table and we are happy that Proclivity is able to finally allow them to reclaim this with unprecedented knowledge into the predictive shopping and purchasing behavior of their customers to allow for high-performance targeted marketing and merchandising across numerous channels."

Proclivity Systems is currently working with several Fortune 500 online retailers and publishers.

How Proclivity Works

Proclivity Systems' one-of-a-kind revenue optimization platform, Proclivity, leverages advanced econometric modeling of the actual behavior exhibited by all of a particular client's customers, in relation to all of their products, at all times. In this way, Proclivity Systems' clients can ensure that all of their customers are sent the most relevant offers - improving conversion, boosting sales, and reducing churn costs.

Once deployed, Proclivity becomes a new asset for marketers and merchandisers: a consumer behavior bank. This bank actively collects, mines and stores data from all third-party sources clients make available. The actionable intelligence the bank generates can be utilized across all on- and offline marketing channels. From email and site optimization, to online and mobile advertising, and even direct mail and in-store promotions, this consumer behavior bank provides endless opportunities to maximize the impact of all marketing efforts.

About Proclivity Systems

Proclivity Systems develops innovative solutions that provide predictive insight into consumer behavior - knowledge that empowers high-performance, targeted marketing and merchandising programs. Proclivity Systems' central revenue optimization platform, Proclivity, provides clients a new corporate asset: the consumer behavior bank. The bank provides clients with profound knowledge about their customers' shopping interests, purchasing likelihoods and level of expenditure for any potential offer, helping them to make critical business decisions while also providing the mechanism to immediately target across various channels and maximize potential revenue. The company's flagship product, Proclivity Mail[TM], capitalizes on the consumer behavior bank's intelligence to accurately forecast consumer purchasing behavior around targeted email campaigns.