Founded over 30 years ago as the inaugural television shopping network, HSN, Inc. has grown into a $3 billion interactive multi-channel retailer offering a wide range of product on TV, online, mobile and in catalogs (through Cornerstone) and in stores. HSN broadcasts live 24/7 in 96 million homes.
Client Objective:
Grow merchandise sales by leveraging resources other than limited television airtime.
Approach:
Strategic Advice: Provided HSN leadership with a comprehensive business plan and implementation roadmap to create an in-house division dedicated to growing sales without using valuable television airtime. Marketing strategies covered five ancillary revenue initiatives: upselling, continuity shipments (autoship), waitlist demand capture and fulfillment, warranty programs and contextual commerce, which integrated HSN products in other networks’ programming.
Operational Guidance: Lead the strategic roll-out and operational workings of each ancillary revenue initiative across multiple HSN divisions: Merchandising, Planning, IT, Production, Sales & Service Center and Fulfillment.
Industry Resources: Partnered with internal IT resources, key HSN vendors and external functional experts to scope and build the merchandising, call center and customer service systems required to support the rapidly growing ancillary revenue business.
Results:
Over the course of three years, these ancillary revenue strategies grew to produce over $100 million high margin sales annually, comprising a double-digit percentage of HSN’s total sales.
