H&M Group

H&m Group

Redefining Engagement at H&M Group

H&M Group, founded in 1947, has grown from a small clothing shop into a global design empire, operating over 4,700 stores across 76 markets. Its mission—making design accessible to all—has long defined its success. Yet, as e-commerce reshaped retail, even a giant like H&M faced a challenge: retention. Millions visited its online platforms, but few returned.

The problem was clear: How could H&M foster deeper connections with its users? To answer this, the company embarked on a journey of UX research and innovation, uncovering insights that transformed its digital experience and redefined customer engagement.

Retention: The Silent Crisis

H&M’s online traffic was robust, but repeat visits lagged. Research soon revealed the roots of the issue. Many users found the experience impersonal, lacking features to anchor their habits. Recommendations were generic, failing to leverage customer preferences. Frustration over sold-out items, without any means to track availability, further eroded trust and engagement.

In the fiercely competitive e-commerce market, the stakes were high. H&M needed more than an incremental fix; it required a shift from transactional interactions to delivering meaningful experiences that resonated on a personal level.

Uncovering Insights Through Research

To address the problem, H&M launched a comprehensive research initiative, combining multiple methods to build a complete picture of user behavior and needs.
  1. Interviews and Surveys 
  2. Interviews with 20 users and surveys of 2,000 respondents revealed a recurring frustration: users wanted a low-effort way to save items of interest without the pressure to buy immediately.
  3. Behavioral Analytics 
  4. Heatmaps and clickstream data from thousands of sessions showed a sharp drop-off when users encountered out-of-stock items, underscoring the need for better communication about availability.
  5. Competitor Analysis 
  6. A detailed benchmark study of competitor platforms highlighted the effectiveness of «wishlist» and notification features in driving repeat visits and habitual engagement.
 
These findings formed the foundation for a new vision: a user-centric approach that made engagement simple, intuitive, and rewarding.

From Insights to Solutions

Based on the research, H&M developed two features: Favourites and Notify Me Back. These tools aimed to reduce friction, enhance personalization, and turn frustrations into opportunities for connection.
 
Favourites
This feature allowed users to save items they liked without committing to purchase. Designed to require minimal effort, it was accessible even to non-registered users. Acting as a «memory vault,» Favourites became a personalized space that evolved with users’ tastes.
 
Notify Me Back
For out-of-stock items, Notify Me Back let users request updates when the product became available again. Notifications were timely, personalized, and integrated with tailored recommendations to encourage deeper exploration.
Both features were designed with scalability in mind, ensuring they could evolve as user needs and preferences changed.

Measuring Success

The impact of these changes became evident within two months of launch.
  • Conversion rates increased by 6%, reflecting renewed user interest.
  • Feature adoption reached 3%, a strong start that validated the appeal of Favourites.
  • Account registrations rose by 8%, as users saw the value of a more personalized experience.
 Qualitative feedback also highlighted the success of these features, with many users expressing satisfaction with the ease and utility of the tools.

Lessons from the Process

H&M’s journey offered several key takeaways:
  1. Start Small, Iterate Quickly 
  2. Early prototyping and testing allowed the team to identify and address friction points, saving time and avoiding costly missteps.
  3. Let Data Lead the Way 
  4. Behavioral analytics guided decisions, ensuring the features aligned with actual user behaviors and needs.
  5. Build Trust Through Transparency 
  6. Clear communication about how features worked—such as the ability to save items without logging in—helped build loyalty.

Challenges Along the Way

The process wasn’t without obstacles. Technical debt from legacy systems slowed development, requiring the creation of modular design systems to future-proof the platform. Additionally, convincing non-registered users to engage with the features required subtle nudges, like pre-populating Favourites for first-time visitors. Coordination across teams also proved challenging, highlighting the need for agile workflows and clear communication.

Looking Forward

H&M isn’t stopping here. Building on the success of Favourites and Notify Me Back, the company plans to roll out further enhancements, including:
  • AI-driven personalization to suggest items tailored to individual tastes.
  • Social sharing features to let users inspire each other.
  • Rewarded exploration, offering incentives for curating and discovering new styles.
  • Quarterly feedback loops to continuously refine the user experience.
 
These initiatives aim to deepen connections with users while maintaining the adaptability to meet evolving expectations.

A Moment That Defined Success

One user’s story illustrates the transformative power of these features. After missing out on a sold-out jacket, she activated Notify Me Back. Weeks later, a notification informed her it was back in stock. Not only did she purchase the jacket, but she also added matching accessories—turning a missed opportunity into a memorable shopping experience.
 
This story captures the essence of H&M’s transformation: technology and empathy coming together to create meaningful connections.

Conclusion: Designing for Connection

H&M Group’s journey is a testament to the power of user-centered design. By leveraging research, data, and thoughtful innovation, the company not only addressed a pressing business challenge but also redefined the role of its digital platform. The result? A shopping experience that goes beyond transactions to build lasting relationships.
 
In the fast-evolving digital world, where loyalty is hard to win, H&M has shown that even small design changes can have a profound impact—turning one-time visitors into lifelong customers.

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