San Francisco, CA–(August 20th, 2011) Retail Technology Provider SkuLoop and PACT teamed up in its first ever charity flash sale. PACT, the online underwear brand, aligns each line of its organic cotton underwear styles with a nonprofit and donates 10 percent of each sale to support these organizations. “While PACT is continuously committed to charitable giving, we aimed to highlight PACT’s commitment to Sierra Club and introduce the PACT product to new customers with a flash sale that offered discounted products, with a 100% of the proceeds going to Sierra Club’s Beyond Coal initiative,” said Michelle Crames. The email went out to Sierra Clubs members and the response was overwhelming. add “CEO of SkuLoop-creator Giiv, Inc. after Michelle Crames.
Jason Kibbey CEO and Founder of PACT said, “The revenue from our Skuloop sale was our most successful ever, even surpassing the revenue we received with the same products on GILT Groupe.” The Sierra Club fan based proved to be enormously interested in the product and supporting their cause of choice. “We had twice as many orders from Skuloop than we did with Groupon,” Kibby adds.
Alexis Zimbalist, SkuLoop VP said, “PACT tells us they saw about 3x their normal conversion rate, which is especially impressive given the Sierra Club newsletter subscriber would have significantly lower purchase intent compared to the existing PACT customer base with an expressed interest in the product, or a Living Social user for instance who as opted in for product deals. With new customers accounting for over 90% of purchases, the charity flash sale maybe a welcome alternative for customer acquisition especially next to the 40%-50% of revenue that the group buying sites require to participate. Donating that ‘sunk’ marketing cost to a worthy cause just makes more sense.”
Crames notes, “If I didn’t already have serious doubts about the Groupon model, our Sierra Club/ PACT charity flash sale proved to me that, not only does Groupon not make much sense for major retailers who have their own cross channel reach to work with, but that there are superior customer acquisition models for growing brands and retailers as well. With the SkuLoop platform, we’re giving control back to the retailer. Not only do our partners control the terms of the deal and keep the revenue, but they also retain all of the customer data, which is not offered by by the group buying and flash sale sites.”
SkuLoop and PACT plan to launch a follow up program in early October.