Guerlain, like many other luxury beauty brands in the region, faced the challenge of engaging with their audience in a highly saturated market. The CRM program that Guerlain had piloted lacked advanced analytics and did not support the brand’s growth plan.
TRANSFORMING
BEAUTY LOYALTY
THE CHALLENGE
Guerlain tasked LOYALME with designing and implementing a V2.0 CRM program that supported their boutiques, with the ultimate goal of sustainably growing Customer Lifetime Value.
The CRM infrastructure needed to address the following challenges:
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Build one-to-one relationship with end users
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Deliver personalized, relevant messages and offers to end users
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Cater to the needs of a the demanding luxury audience who places high importance on customer experience
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Reward and engage with customers through their preferred channels
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Be top-of-mind in a saturated market, where advertising messages are plentiful
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Improve database security and reliability
THE OPPORTUNITY
A well-designed CRM program can help a beauty brand build profits along multiple fronts: It can increase revenue through identification and retention of the brand’s best customers (CLTV), generate incremental purchase behavior
(RFM) through customer engagement, and improve marketing KPIs across the board (ROI, churn).
Working closely with the Guerlain team, we identified the specific areas of need:
In-Store Customer Experience
The existing system was unable to immediately pull up customer history when beauty advisors were interacting with them face to face. We wanted to create an efficient way for the advisors to pull up past transaction information on-the-go (including purchases, events, phone calls, offers received etc.) to provide
a more detailed and personalized service.
Overall Customer Engagement & Segmentation
Without a segmentation strategy and target-specific communications plan, Guerlain faced low engagement rates across their customer base. Our platform could provide the infrastructure to automate relevant offer
and content deployment in order to improve relevancy, and positively impact response rates and sales.
Data Safety and Compliance
Guerlain’s database lacked data security and needed to find a solution that was bulletproof. Local legislation had implemented Personal Data requirements against the unauthorized collection of data and use of paper forms. Our platform and technology was designed with security at the forefront, and is fully compliant with the legislation requirements.
THE SOLUTION
On the front-end, we built a “customer
profile portal” for beauty advisors to use in
Guerlain’s boutiques, when servicing
customers.
On the backend, our platform is the central
nervous system for all CRM related
activities, providing the infrastructure and
automation to run Guerlain’s program from
end-to-end.
Determine KPI
First, we determined the indicators that
contribute to business profitably:
• RFM
• Churn/Retention Rates
• Net Promoter Score
• Customer Lifetime Value
• ROI
Segmentation
Next, we created segmentation criteria to:
• Determine the most profitable clusters
• Design strategy to focus on high value
customers
• Decide how to allocate investments
between different segments
Build
THE RESULTS
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Improved customer relevancy and service
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Increased share of wallet
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Eliminated inefficiencies in the sales process caused by poor software design
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Supports beauty advisors in all of Guerlain’sboutiques in St. Petersburg and Moscow
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Decreased operating expense
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Improved efficiency of Guerlain’s marketing campaigns
Grew loyalty customer database
by 8% within the first 9 months of
program execution
Are you on a mission to build a Loyalty Program for eCommerce?
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