Rack Room Shoes Grows Revenue With Salesforce Marketing Cloud

Rack Room Shoes and Off Broadway Shoe Warehouse achieved an annual ROI of 777% with integrated and engaging marketing campaigns with Salesforce Marketing Cloud

SAN FRANCISCO—January 15, 2018—Salesforce (NYSE: CRM), the global leader in CRM, today announced that shoe retailers Rack Room Shoes and Off Broadway Shoe Warehouse, owned by the German-based shoe retailer The Deichmann Group, grew their revenues with Salesforce Marketing Cloud, bringing consumer engagement data, campaigns and personnel from both companies onto a single CRM platform. The transition to Marketing Cloud has enabled marketers to deliver intelligent, personalized consumer journeys at scale, resulting in an annual 777 percent return-on-investment (ROI).
With approximately 500 total brick-and-mortar locations across the United States and a strong focus on customer engagement through digital channels, Rack Room Shoes and Off Broadway Shoe Warehouse had outgrown its CRM systems. The companies were managing email marketing through a third-party vendor that used a dated “batch and blast” approach that sent a standard email to all customers regardless of their history with the company. The cost associated with this approach became increasingly prohibitive as the companies grew. In addition, the siloed third-party vendor model limited visibility into analytics for email marketing activities and slowed manual delivery of time-sensitive marketing messages to consumers.
“It is essential that we own our customer relationships and exceed their expectations for relevant, timely interactions with our brand,” said Scott Baldt, Sr. Director Omni-Channel, Rack Room Shoes. “With a unified platform and team dedicated to our marketing technology, we have the agility and tools to improve our marketing effectiveness and deliver personalized consumer experiences.”
The shoe retailers used Marketing Cloud to increase store traffic with incentivized in-store rewards programs and added additional digital channels such as SMS messages to their consumer outreach strategies. For example, the companies can now see which customers have not used their rewards and automatically send reminders suggesting they redeem them online or in-store. Additionally, the marketing teams have increased productivity by bringing digital marketing in-house, automating campaigns and integrating data and analytics. All together, these changes have helped the companies grow, as Rack Room Shoes reported an online revenue increase of 161 percent for email and 451 percent for SMS, while online revenue for Off Broadway Shoe Warehouse jumped by 44 percent for email and 291 percent for SMS.
“There is no ROI in marketing if you don’t reach the right people. Prior to Salesforce Marketing Cloud, Rack Room Shoes and Off Broadway Shoe Warehouse had a siloed approach that didn’t allow for the integration of important data and true multi-channel marketing campaigns. Marketing Cloud broke down those silos, and has enabled Rack Room Shoes and Off Broadway Shoe Warehouse to integrate marketing efforts across channels to improve ROI,” said Rebecca Wettemann, vice president of research at Nucleus Research.
“Brands recognize the need for an integrated marketing platform that can support timely, personalized and connected customer experiences across web, social, mobile, store and others channels,” said Jon Suarez-Davis, chief strategy officer, Salesforce Marketing Cloud. “Rack Room Shoes and Off Broadway Shoe Warehouse are trailblazers that have invested in a platform for email and SMS marketing and customer journeys that address those needs, and it is exciting to see them already realizing the benefit.”
Additional Information
The return on investment (ROI) percentage is based on a case study conducted by Nucleus Research and sponsored by Salesforce. Additional information and the full report is available at: https://nucleusresearch.com/research/single/salesforce-roi-case-study-rack-room/
Learn more about Salesforce Marketing Coud at: https://www.salesforce.com/products/marketing-cloud/overview/
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About Rack Room Shoes and Off Broadway Shoe Warehouse
Rack Room Shoes and Off Broadway Shoe Warehouse are headquartered in Charlotte, N.C. Known as innovators in the shoe industry for more than 90 years, Rack Room Shoes and Off Broadway Shoe Warehouse offer a wide selection of nationally recognized and private brands of great shoes for men, women and children in comfort, dress, casual and athletic categories. For more information, visit Rack Room Shoes’ website at https://www.rackroomshoes.com, or Off Broadway Shoe Warehouse at https://www.offbroadwayshoes.com.
About Salesforce
Salesforce, the global CRM leader, empowers companies to connect with their customers in a whole new way. For more information about Salesforce (NYSE: CRM), visit: www.salesforce.com.
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