JackThreads: An Online Retailer Using Web Analytics for Success

Over the past couple of years, my shopping habits have moved almost entirely online. I can usually find better prices and a bigger selection by browsing different brand websites. My favorite finds, however, are discount websites where brands send their clothes out on clearance. These websites host many different brands, but there is limited time to purchase. Once a size or color is sold out, there is no restocking.




One of these websites is called JackThreads. As described on their websites, “JackThreads is an online shopping community selling apparel, shoes, and accessories from top-tier streetwear and contemporary fashion brands. All goods are guaranteed authentic and are exclusively priced for our members." While there are additional products sold other than just fashion, most products carried are specifically for men. Over the past year or two, I have purchased clothes, shoes, and a couple posters from the website. The prices are much lower than other retailers, and the quality of the products is great!

JackThreads predominately sells through its web presence, but it also has a mobile app on all major platforms that allows for purchasing to occur. “Since launching on iPhone and Android around a year ago, the iOS app has been downloaded half a million times on iPhone. It’s No. 3 in the lifestyle category, and #61 in the top free charts. On Android, the app has another 100,000 or so downloads." After studying which mobile platforms people were using to access their website, the company refocused its spending and resources to build out its iPhone app. This app alone now accounts for 45% of JackThreads’ overall revenue.

Web analytics should be credited for the mobile success of this company. By analyzing customer data, CEO Jason Ross says JackThreads’ marketing analytics teams were able to promote the app itself through the channels that would make the biggest difference: “Google paid search, Facebook, and sister sites including the magazine-like Thrillist." Utilizing one of Facebook’s advertising products, the company was able to define custom audiences and target inactive buyers. “There was a 6X return on ad spend (used in combination with Facebook targeting). The site also reported a 30% lower customer acquisition cost vs. other channels." This promotional strategy for mobile allowed them to target an audience most likely to use their apps in an extremely cost-effective way.

Expansion into the tablet arena is already proving to be a win for the company. “Customers shopping the e-commerce web site on iPads, about 5% of total traffic, boast conversion rates three times higher than members using other mobile devices and have average order values 40% greater than members using other mobile devices, Jackthreads says." While the company does not have plans to completely abandon their web interface, mobile app analytics are providing enough evidence to focus efforts appropriately.

While the company does not list specific metrics it tracks, the above information provides enough insight to infer some of those used. Clearly the company was triggered to focus on mobile efforts after discovering the heavy traffic coming from both its mobile website and iPhone app. Additionally, understanding traffic referral sources gave the company a strong understanding of where it needed to focus promotional efforts for its iPhone application that would later drive a heavy amount of sales. To make sure both the app and mobile website are clearly laid out, the company also must regularly make sure of a visitor flow feature to make sure there are no dead ends or confusing processes.

JackThreads clearly pays close attention to its performance online through web analytics. Their continuous uptick in revenue is a strong indicator of this success. “The company, which offers hundreds of apparel brands including a couple of its own private labels, has found its mobile users to be some of the most engaged, [Thrillist (JackThreads’ parent company) CEO Ben] Lerer says. They’re evangelizing to friends, sharing, and converting in days not months." These high conversion rates reflect the heavy social presence of the company.

Consequently, I would recommend they consider a product like SproutSocial. SproutSocial is a unique tool that offers many features optimized for a larger business like JackThreads. Its unique customer relationship management (CRM) tool even allows businesses the ability to make notes on specific social profiles they interact with so that separate team members have the information available before responding to that individual(s) in the future. For a company that is looking to activate current customers so that evangelism and conversion can take place at high rates, the ability to interact with customers at such a detailed level is a significant advantage. The company can then track the customer relationship over a period of time, correlating social interactions with purchase history.

Another tool the company could use to improve user experience would be UserReport. This tool allows for a deeper understanding of visitor demographics, especially when combined with satisfaction surveys. While most who visit the website are men, this segment can be better defined by age, income, education, occupation, and other identifiers. This information can then be used to track specific visitor groups “to better evaluate landing and exit pages, search keywords, traffic sources and campaigns." This analysis might point to new features that could enhance the user’s experience. With heavy investment into the company’s iPhone and iPad app development, demographic data might point to need for more lifestyle features such as style editorials. There could be an entire educational piece missing for consumers wanting to purchase from the website but unsure of where to start.

JackThreads is proof that strong web analytics can propel a company toward new opportunities. Lerer states, “We’re way ahead of our projections and our plans because of this mobile growth…it’s not just a shift, it’s found money and found business on top of what we had anticipated the business to do." Careful analysis can uncover opportunity for immense growth.