Gilt is Guilty of Exclusion


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I have always thought of ladies with bags covered in designer logos as walking advertisement. However, I understand and appreciate the high quality materials and level of craftsmanship that comes with the premium price tag. Being one who is drawn to deals and always wanting a bargain, I turn to flash sale sites to look for designer goods. Recently, I visited, a flash sale site that offers lower prices on luxury brands, and found the perfect bag for spring. I definitely felt guilty for coveting a tote that was equal to two round-trip tickets to the Caribbean. Do I really need this bag? Should I splurge or save for that vacation? Let’s just say, I did not give in to my spending habit.

Just the other day, I received an email offer from United that would help me get my bag and earn miles toward my trip. How could I pass up on this offer? Easily, since the fine print states that the “offer is limited to new Gilt members only.”

Milage Plus United

Curious why the site would only focus on new members, I decided to check out traffic to Gilt and a few of its competitors. It seems like Gilt has been seeing a slowdown in growth over the past couple of years, which is also the case for Ruelala. From February 2010 to February 2011, Gilt saw a 26% increase in the number of unique visitors to the site. However, that growth dropped to only 10% from 2011 to 2012. Moreover, the 2011 Holiday season actually saw fewer unique visitors to the site than the prior year.

Numbers of UVs to Each Site

When comparing growth over the two-year time frame, Gilt was in third place with a total of 38% growth in unique visitors. It is no wonder Gilt is focusing on attracting more members.

Percentage Growth in Unique Visitors

However, why not open the offer up to everyone? Increasing the numbers of members is important but getting members to make purchases is even more so. Whatever the reason maybe, Gilt just missed out on a decent purchase by excluding current members from the offer. Only time will tell if this offer will help increase the number of visitors to the site.