Oriflame Built a Sales Funnel in a New Channel: Automatic Communications in the Chatbot Bring 545% ROI

Oriflame is a leader in direct sales among cosmetics companies. Oriflame has been highlighting people’s beauty globally for 50 years. The company has representative offices in 60 countries and 3.6 million Brand Partners worldwide
Business scale. 
∼$1.5 bln in annual sales revenue

1,000+ different items for sale
author
Elena Evdokimova,
Head of CRM, Oriflame Russia
Goals
Increase direct marketing revenue by improving communications in messengers
Reach a new audience with emails
Solutions
Launch a chatbot for Telegram and a social messenger

Integrate the product catalog in the chatbot, launch bulk campaigns and trigger campaigns  

IT stack. 

Botmechanic chatbot
Mindbox marketing automation platform
Results
545% ROI in six months
The following case study is from Mindbox, the original brand behind Maestra’s technology
Cosmetics company, Oriflame, has been using Mindbox to interact with its customer base since 2015. The platform enables Oriflame to enrich unified customer profiles, launch bulk campaigns and trigger workflows, and personalize offers in web stories and pop-ups. In 2021, the company introduced a new communication channel — a chatbot for Telegram — to reach a larger audience and increase direct marketing revenue. As a result, the chatbot simultaneously acts as a simplified website version, allowing customers to search for items with ease, as well as a channel for instant bulk campaigns and personal messages. Oriflame launched the first campaigns in just 4 weeks, and the chatbot was able to break even in 2 months.
The chatbot is mainly used by brand partners. They bring in the most revenue for Oriflame. Brand Partners order products at discounted prices and then resell them at catalog prices. They can also invite others to join Oriflame and build their own teams, while still retaining their commission.

Chatbot results

545% ROI

We made our performance-based calculations for 2021 based on figures from April 1–August 31 (inclusive). Oriflame asked us not to reveal the exact figures. The data uses last-click attribution and has been calculated by Oriflame using the following formula:
Botmechanic provides Oriflame with a 545% ROI. Every $1 invested in the platform brings a return of $5.5.
Oriflame reached a ROI in just 2 months following the launch of the chatbot and campaigns:
What was done
Start of project, launched bulk campaigns
Launched trigger campaigns for abandoned category browse
Launched trigger campaigns for abandoned carts
Launched the Wellness Marathon
Month
March
April
May
June
July
August
ROI
0
-4%
113%
344%
488%
545%
Since August, Oriflame has been working on the Wellness Marathon. We’ll be sharing its results in a separate post.
  • 3.5%
    average conversion rate for trigger campaigns sent through the chatbo
  • 4weeks
    spent fine-tuning scenarios for campaigns
  • 2months
    to achieve a positive ROI

The challenges faced and the solutions found

When comparing Q3 2020 and Q3 2021, we found that the email channel was losing active subscribers, with its CTOR (click-to-open rate) falling from 14.15% to 9.94%, according to reports in Mindbox. This prompted Orliflame to find new ways of boosting campaign engagement.
One option was the creation of sales funnels in an additional communication channel (messengers and chatbots). This would give Brand Partners the choice of which channel suited them best. At the same time, it was important to evaluate the new channel’s performance without increasing the amount of expenses for its maintenance. Mindbox’s new tools for automating campaigns in messengers were able to provide Orilflame with a solution. The campaign preparation process decreased significantly as these campaigns are easier to design compared to emails. Also, unlike SMS campaigns, these messages are free.
As a result, Oriflame’s chatbot supplemented its trigger and bulk email campaigns with an instant form of communication with brand partners. The chatbot has an embedded simplified product catalog and creates “on-the-spot” personal offers.
Goal
Solution
Create an additional channel for communication with brand partners that is cheaper to maintain than the email and SMS channels
Created a chatbot for Telegram and VK (a social messenger), which has a less costly design and allows to send messages for free
Make website navigation easier
Embedded a simplified product catalog in the chatbot for Telegram and VK and grouped the items into categories
Increase the coverage of marketing communications
Launched bulk and trigger campaigns via the chatbot
Increase conversion rate
Personalized communications sent by the chatbot: fine-tuned recommendations for the algorithms and triggers for category browses and abandoned carts
Encourage customers to share their personal data, shorten questionnaires and make them less intimidating
Developed scenarios for data collection through different entry points (Oriflame website, emails, Telegram) so that data could be merged into unified customer profiles. In each communication channel, customers are asked to leave a minimal amount of data
Collect and store unified data about customers and their actions in the chatbot and merge them with the data from the other channels
Customers are identified when they click on links in emails. This avoids repeated requests for their personal data, e.g. their phone number. We integrated the chatbot with Mindbox to merge the data from Telegram and VK into the unified customer profiles. We set up the data transfer through webhooks

Campaigns launched via the chatbot

We created user scenarios in order to launch the chatbot. These scenarios included a large number of functions: from making a purchase to providing campaigns with recommendations and tips on how to promote the products. We used the Botmechanic service to set up campaigns for two free channels simultaneously (Telegram and VK). In the future, we plan to add WhatsApp communications.
We integrated the chatbot with the CDP. This not only allows us to merge brand partner contact data into the CDP for communications in messengers, but also to store the data regarding their actions in Telegram and VK. All the bulk and trigger communications are configured in the CDP as well.
More on the campaigns that were launched:
  1. Our new Brand Partners receive a link to the chatbot in their welcome email. The homepage offers several different scenarios of info messages: from item digests to tips on how to build your career as a brand partner:
Image
Image
Main menu
List of item categories
  1. The chatbot contains links to the main website pages. Links are grouped into categories to facilitate navigation.
  2. Once the user clicks on a category, they get a recommendation message in 2 hours with the products from the category they viewed. Trigger campaigns are created and set up on the Mindbox platform and use ML-driven product recommendations. This enables the company to have a deeper insight into the audience’s preferences and help the customers choose what to purchase.
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  1. Chatbot subscribers receive messages with promotions:
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Development plans: Launching chatbots in all regional offices

Oriflame decided to apply the experience of the Russian office to other divisions around the world. To implement the initiative, we will be creating separate projects where we’ll transfer the existing campaigns. The local marketers will only have to translate the texts to their local languages.
In the meantime, we are in the process of launching a new scenario to mark Oriflame’s 55th anniversary.