L’Oréal Luxe Doubled Revenue from CRM Communications and Launched the Lancôme Loyalty Program
L’Oréal Luxe Doubled Revenue from CRM Communications and Launched the Lancôme Loyalty Program
The world’s market leader in perfumery and cosmetics. The company was founded in France in 1909. The Luxe division represents 12 premium brands, such as Lancôme, Giorgio Armani and Yves Saint Laurent.
Challenges
Build an omnichannel customer experience
Increase share of retained customers
Boost revenue generated by the email channel
Increase share of retained customers
Boost revenue generated by the email channel
Solutions
Integrate Mindbox into all touchpoints such as the website (Magento), contact center and offline boutiquesLaunch loyalty programs and direct communications (emails and texts)Personalize communications with customers taking into account their customer journey
Results
Revenue from CRM communications doubled
Noteworthy features
Email sequences encourage the customer to upgrade from ordering sample sizes to full-sized products
The following case study is from Mindbox, the original brand behind Maestra’s technology
From a technical point of view, Mindbox can accommodate most customizations, allowing you to find a solution to almost any problem, even if it’s complex or requires changes. Flexibility is the platform’s main advantage. However, a lot depends on the human factor. If the integration isn’t implemented correctly, then the rest of the plan won’t work well either. In that sense, we are lucky to have our current Mindbox manager. I actually can’t imagine how we could manage without Evgeniy’s help.
Although Mindbox can be a challenging tool for marketers to use, luckily the IT agency we work with has expertise with the platform. Our colleagues help us to properly structure data within the platform and categorize and aggregate for reporting. Unfortunately, we haven’t yet been able to build a suitable CRM reporting feature using Mindbox.
Mindbox has competitive rates, but I would only recommend the platform to companies that have the resources to implement and support it. The platform is best suited for large FMCG companies with a large customer base.
History of Cooperation with L’Oréal
L’Oréal Luxe, a premium brands division, implemented the platform in January 2017.
Evgeniia Sergeenko, Head of CRM L’Oréal Luxe, joined the team in early 2018.
Below are in-depth overviews of key features implemented over the past three years:
- How we consolidated all customer information into one place and segment this database for campaigns and analytics
- How we use segmentation in manual email campaigns
- How we automate communications with customers
- How the Lancôme loyalty program works
- How we have built an omnichannel customer experience
How We Consolidated All Customer Information to Segment the Database
L’Oréal Luxe implemented Mindbox to safely store all of its premium brand customer data in one place. It was important that communication with buyers of different brands was personalized. This meant quality, service and a unique approach would be be the main focus points of the luxury brand segment. Mindbox makes this possible by allowing each brand to set up its own trigger sequences, which correspond to its positioning. The data is used not only in communications, but also in the development of marketing campaigns.
Each brand’s customers are split into different segments depending on the purpose of communication. All the data that allows us to perform these actions is collected on the platform. Thanks to single profiling, segmentation is completed in a few clicks with Mindbox filters.
Customers are divided according to:
- Standard criteria of RFM analysis: Recency (date of the last order), Frequency (total number of customer orders) and Monetary Value (total sum of all orders’ value).
- Interests
- Preferred communication channels
How We Send Personalized Bulk Campaigns
We use the segmentation described above to send bulk campaigns only to customers who might be interested in them.
Bulk email campaigns for Armani and Yves Saint Laurent
How We Automted Customer Communications
There are dozens of automated campaigns for each brand. Below are two examples of trigger sequences for the Armani brand:
Once a customer has placed an order with Armani, the accompanying campaign carries out two tasks. First, it encourages customers to make repeat purchases. Then, it clears some customer follow-up tasks from the call center:
Armani campaign to introduce customers to a new product:
Our purpose is to give customers a sample, and then offer them a full-sized product.
We use almost all of Mindbox’s capabilities within our project with L’Oréal Luxe. We create filters, set up segments, run workflows, and even check data transfers.
The most important things in this project are that the entire customer base is stored on Mindbox and all communication is sent from the platform as well. Concentrating all customer information in one place is a key component when working with a CRM. This allows us, for example, to run customer-specific campaigns and use the obtained data to create targeted communications.
Data centralization is the most important part of working with customer communication automation. We’re seeing that the revenue generated by automated email campaigns is increasing on this project, meaning that income is generated without additional effort on our part.
How the Lancôme Loyalty Program Works
The Lancôme loyalty program was relaunched on the Mindbox platform in January 2020.
The Lancôme Loyalty Program includes points that are awarded for purchases, social media connections and mailing subscriptions.
How We Consolidated Brand Communication into a Single Omnichannel Path
L’Oréal Luxe has many touchpoints with its customers, including websites, webpages, survey platforms and offline boutiques. To properly build a CRM and a personalized approach, it is critical to identify a customer at all touchpoints and enrich their profile with data, which, in turn will enhance the quality of service they receive. You can’t create a new user every time because this typically requires the customer to re-share their data and interests.
Cleansing and consolidation of data into a unified customer profile allows L’Oréal Luxe to clarify that a customer is actually a single person and not four different people. Triggers are launched correctly and products can be recommended to the customer based on their preferences and previously purchased products.
Next Steps for the Marketing Team
Providing High-Quality Service through NPS Surveys.
Launching loyalty programs with additional brands
Improving email campaign effectiveness with enhanced personalization
Developing a new communication channel: web push notifications
Improving advertising channels for better customer interactions