Did Saks Global Make a $600 Million Mistake With It's Personalization Platform?

Aug 21, 2025

Saks Global's $600 million investment in personalization sparks debate among experts. The team discusses the importance of adapting strategies to current consumer modes instead of relying solely on past preferences. They emphasize the need for integrating online and offline experiences, especially as shoppers increasingly turn to social platforms. The conversation critiques outdated methods and suggests transparency and situational data for better engagement. Ultimately, there are recommendations for evolving retail approaches to align with modern shopping behaviors.

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INSIGHT

Personalization Is Customized Context

Personalization is essentially customization for individuals and often fails when it ignores situational context.
Modes and contextual data matter more than static preferences for predicting customer needs.

ADVICE

Don't Rely On Short-Term Shopping Signals

Do avoid personalizing solely from short-term shopping patterns since modes change frequently.
Use mode-aware signals so a vacation shopper doesn't get served wedding or luxury-only recommendations.

INSIGHT

Give Customers Mode Control

Let customers express their mode via dashboards or clicks rather than inferring everything invisibly.
Transparent customization that uses observable behavior beats long questionnaires.

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In an August 14th Vogue Business article by Madeleine Schultz , Saks Global, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, discussed its personalisation strategy and an investment of $600 million for it's new platform. The only problem is: based on the article, we think they got it wrong.

In this episode of the Experience Strategy Podcast, hosts Aransas Savas, Joe Pine, and Dave Norton delve into the evolving landscape of personalization in retail, particularly focusing on Saks Global's new strategies. They discuss the importance of understanding customer modes, the role of contextual data, and the challenges faced by traditional personalization approaches. The conversation highlights the need for brands to meet customers where they are, especially in the age of social shopping, and emphasizes the integration of online and offline experiences to enhance customer engagement.

This episode is brought to you by The Cargo Agency and Feedback Now.

Takeaways

Personalization is a form of customization for individuals.
Saks has invested heavily in personalization strategies.
Modes thinking is crucial for effective personalization.
Contextual data is essential for understanding customer needs.
Traditional personalization approaches may feel outdated.
Social shopping is a growing trend in retail.
Brands must meet customers where they are online.
Integration of online and offline experiences is key.
Personalization should not just be about demographics.
The future of retail lies in innovative and brave strategies.

Chapters

00:00 Introduction to Personalization in Retail 02:57 Exploring Hyper-Personalization Strategies 05:55 The Importance of Context in Personalization 09:05 The Role of AI and Machine Learning 11:57 Challenges of Traditional Retail Personalization 14:49 The Shift Towards Social Shopping 17:45 Integrating Online and Offline Experiences 20:48 Future Directions for Retail Personalization

https://www.voguebusiness.com/story/consumers/inside-saks-globals-personalisation-strategy?utm_source=chatgpt.com

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