Published on the 17/01/2017 | Written by Anthony Caruana

And not just for a company selling undies…

Customer analytics, recommendation engines, business intelligence…have these machine-driven services replaced the role of the humble shop-keeper who knew each customer’s favourite products and when to expect them to visit the store? Perhaps. But also, perhaps not.

Even as the internet brought massive opportunities to savvy retailers which has resulted in a loss of intimacy between buyers and sellers, it has left space for the personal touch. That’s what has defined Chanel Costabir’s business The Lingerie Boutique. When she created a business plan for a fictitious company at just 18 years of age, she probably didn’t realise just how valuable her hands-on approach would be.

From the very beginning, across every aspect of the company, Costabir looked at every transaction as she packed orders for shipping. “Over the years, I’d start seeing the same names popping up. I’d be able to pinpoint where in Australia they were from. Whether they were male or female – 40 per cent of customers are male – and what they were ordering.”

That deep knowledge of the detail, and an ability to step away and look at the big picture, allowed Costabir to better understand ordering patterns of not just specific cohorts of customers, but individuals.

This understanding covers the behaviour of first time buyers, who typically make one small purchase and then, assuming they are happy, follow up with much larger purchases weeks later. They make subsequent purchases regularly every year or so or, when a new collection is available.

“Now, because of that, I’ve been able to tailor my product offering to be more relevant to men and women. If I have a $100 set, I know which customers will buy, whereas if I have a $300 set, I know that’s a different group of customers. Men tend to buy the more expensive sets.”

It’s arguable that an in-store experience could be more personal for customers. But Costabir said she’s delivering customer intimacy online through several means. Thanks to her retail experience, she said she has created online tools to allow women and men to confidently buy lingerie without needing to go through an “uncomfortable and invasive” fitting process or needing to understand the “language” of lingerie shopping.

Costabir has created “How to buy lingerie” guides for men as well as other online resources to assist with buying for special occasions as well as garments for everyday use.

Her understanding of buying habits extends to how customers plan purchases. Costabir said “The men who spend the most are very organised and plan for special occasions weeks in advance.”

Customer intimacy means all communications are carefully targeted, too. Along with regular general emails, she sends specific messages to particular customer groups. For example, when it appeared a supplier was about to stop trading, a specific message was crafted and sent to purchasers who showed a preference for that brand – and when it was saved through a buyout, Costabir personally called all affected customers with an update.

“If someone who has purchased regularly from me finds out something they bought regularly may not be available, the least I can do is let them know and not just go dead,” she explained.

“Everyone looks at omni-channel retailing and having both online and offline presence. You don’t have to have a retail store to have an offline presence and that personal connection.”