Why choose Horizontal Integration for your company needs?

 Horizontal Integration launches a new site for Fingerhut

Fingerhut Direct Marketing, Inc, headquartered in Eden Prairie, MN, is a rapidly growing, privately held direct marketer selling a broad selection of merchandise through catalogs and the internet to millions of moderate income consumers nationwide. Fingerhut currently ranks #127 on the Internet Retailer Top 500 Guide.

Horizontal Integration worked with Fingerhut to redesign its Web site, launched in September 2006. The Fingerhut redesign focused on a revamped user experience, a new branding initiative and improvements in promoting its branded credit card. The redesign helped ensure the shopper’s Web experience was representative of Fingerhut’s sales model.

"We're benefiting from our overall sales growth rate of 40%, but web sales have exceeded that because of our major redesign of the front-end customer experience," says Brad Smith, vice president of e-commerce and digital marketing for Fingerhut. Smith attributes that growth to the web site redesign. After the redesign launch Fingerhut site-wide conversion increased 22.8%.

Horizontal Integration is proud of fingerhut's success and continues to be a key partner to Fingerhut.

 Customer Profile

Established in 1968, Fingerhut is a general merchandise catalog company based in Eden Prairie, Minnesota, USA. Fingerhut sells private-label and brand-name merchandise, including about 25,000 items. According to CIO Magazine, by 1998, 71 million people had purchased at least one item from Fingerhut.

 Business Situation

The company re-opened in 2002 after a group of investors purchased its assets from Federated Department Stores. From 2002-2005 the company grew rapidly, expanding its core catalog and online business operations. But by 2006, Fingerhut's eCommerce experience looked similar to most other retail sites. It reflected best practices, but did not accurately reflect the company’s core value proposition and business model.

 Solution

Horizontal Integration has been working with Fingerhut since 2006. to redesign its web channel, improve online merchandising of products, develop email campaigns and online banners that improve customer acquisition as well as analyze and recommend new back end systems to deliver more efficient operations functions.

 Results

  • Fingerhut grew its e-commerce revenue from $52 million in 2005 to $140 million in 2007 an increase of 169.2%
  • Fingerhut grew its overall web channel from 22% of total sales in 2005 to 32% in 2007