GRANCHI GIOVANA & JULIA SUNYOTO/ 4 A2
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CRM
STRATEGY
ANALYSIS
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TABLE OF CONTENTS INTRODUCTION 8 BLOCKS OF CRM BY GARTNER 1. CRM VISION 2. CRM STRATEGY 3. VALUED CUSTOMER EXPERIENCE 4. ORGANIZATIONAL COLLABORATIONS 5. CRM PROCESS 6. CRM INFORMATION 7. CRM TECHNOLOGY 8. CRM METRICS 4. PILLARS OF CRM 1. ACQUISITION & ACTIVATION 2. RECRUITMENT 3. RETENTION 4. LOYALTY RECOMMENDATIONS REFERENCES
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INTRODUCTION ● The company that later would became L'Oréal was founded in 1909 in France, when the chemist Eugène Schueller, created the first synthetic hair dye named Oréal. ● Group's Profile: Portfolio of 36 Brands such as: Maybelline, Lâncome, Yves Saint Laurent and Vichy. Sales in 2018: €26.9 Bn which €3 Bn are online shop.2.1 Bn Present in 150 countries in 5 continents. ● Product category: L'Oréal Luxe: High-end products available at department stores cosmetics stores, travel retail, but also own-brand's store and e-retailers specialists. Customer Profile: Popular brands which are distributed by several retailers. Professional Product Division: Products developed to salons and specialists. Active Cosmetics division: Brands sold in Health-care retailers such as pharmacies, drugstores, and medi-spas.
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8 BLOCKS OF CRM BY GARDNER
CRM VISION
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Positioning WIDELY
● Leadership: Beauty's sector world leader and recognized by the 3rd year
AVAILABLE
world's leader in sustainable development.
● Market Positioning: L'Oréal: Global leader on the beauty industry and most ethical company on the segment. Offering good quality products in an extense brand portfolio. Sales in 2017: USD $ 29.4 billion
Shiseido: Heritage Japanese cosmetic group, offering a premium brand
AFFORDABLE
PREMIUM
portfolio. Sales in 2017: USD $ 28.8 billion
Estée Lauder: Prestigious brand portfolio and innovative service. Sales in 2017: USD $ 12.8 billion EXCLUSIVE
Unilever: Generalist with a wide distribution chain. Sales in 2017: USD $ 2 21.5 billion
CRM VISION ● Brand's value proposition: "Beauty for all, Beauty for each individual": The company believes in beauty diversity and intents to reach a diversified population.
Diversification Accessibility Sustainability Ethic Innovation Expertise
INNOVATION
QUALITY
RESPONSABILITY 7
CRM STRATEGY ● The strategy: Universalization The L'Oréal Group has as strategy to accelerate the group's transformation into a more global, digital and sustainable.
● To adapt to local beauty customers: The research and innovation division works to create new products adapted to different groups. ● The easy access to everyone: The L'Oréal group keeps It efforts to conquer new customer, through a diversified brand portfolio and improving the distribution channels. ● "Share Beauty With All": Sustainable project implanted in 2013 to make L'Oréal a model company in terms of sustainable innovation, production, and consumption. ● The digital transformation: The online shop is responsible for 11% of the group sales what lead them to invest on the development of new technologies like voice ordering, augmented reality and artificial intelligence.
DIGITALIZATION
GLOBALIZATION
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VALUED CUSTOMER EXPERIENCE
The modern customer: They expect a closer relationship and easy access to companies and brands. Consumers Relations Department Missions: ● To communicate with the general public: listen and advise. ● To resolve disputes ● Constantly communicate with the marketing team Automation of the data analysis process: The L'Oréal Group has been investing into a data center division, where is possible to identify the client's behavior and to forecast new trends. Using the Customer Journey Mapping to segment and analyze consumer profiles and know all aspects of the brand-customer relationship at all touchpoints to enhance the experiences offered;
Client's satisfaction analysis: L'Oréal remains closer to its clients “Social allows us to refocus our actions on the present moment, tracking and adapting in real time to continuously improve the link with our consumers,” says Adrienne Rostaing, Market Insights & Data Manager at L’Oréal.
through social media and the official website, analyzing its existing interactions. The traditional satisfaction survey still being used as well.
ORGANIZATIONAL COLLABORATIONS
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Structure: HQ: Clichy, France. Employees: 86.000 Owned stores: 1.13k L'Oréal's Culture - Focus on the client, satisfying their need and anticipating new demands. - The company incentives the entrepreneurial spirit supporting employees who take initiative. - Collective spirit: The company intends to work together as a single team. - One of the leaders role is to help the collaborator to grow inside the group. - 1st Company in Europe in terms of gender equality in Equileap ranking. - L’Oréal is in the Top 10 of the Thomson Reuters Diversity and Inclusion index Skills training: -
22.000 collaborators were trained in digital technology
Incentives: - First company to offers ownership program. - Performance driven Awards: Bonus, Profit Sharing, Health care.
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CRM PROCESS
High quality Ingredient for each of the product
Selecting supplier with a high standard regulations
Customer Life Cycle ( Make up )
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Customer Life Cycle ( SHAMPOO )
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CRM INFORMATION ● Cookies: According to Nadia Leroy, media chef, L'Óreal collect this data creating content is an excellent way to recover qualified cookies. ● Google: Is another tool that allows the company to remains close to the client ● Cockpit/DOMO: L’Oréal has developed a tool, named cockpit, that measures the ROI and productivity of its digital media investments so it can see what is working in real time and make decisions on where to spend.This tool was chosen with the purpose of consolidating all the reporting of the group's campaigns, which concern 32 brands in 70 countries, in a single tool. ● ClaraBridge: Is the leading provider of sentiment and text analytics for Customer Experience Management (CEM) and was chosen by L'Oreal to manage its social media.
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CRM TECHNOLOGY ● L’oreal Have 33 beauty applications in total ARTIFICIAL INTELLIGENCE ● MAKE UP GENIUS - An application that allows L’oreal’s customers to virtually try on 4500 of the cosmetic products using just their tablets or smartphones. ● MODIFACE TECH - Reality app maker, giving up a preview how the product would look like in your face and also face countouring.
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CRM TECHNOLOGY ● SKINCHIP SENSOR - This app measure the level of hydration of your skin, it could capture detailed image of the skin less than one-tenth of a second. ● STYLE MY HAIR APP - Augmented reality partnership with the company modiface, to show of different style and colour of hair preview in 3D.
● VALTECH - Bussiness tranformaton Partner - Provides
● MI-TOUCH - Tablet based system to allow sales
customized digital marketing
people to quickly and easily provie information about a product to a potential customer.
platorm.
● Global Partnership with the You Cam Augmented Reality App.
CRM METRICS
CRM METRICS
● Retention
● Satisfaction & Loyalty
L'Oréal is implemented the differentiation strategy, which target
NPS (Net Promoter Score): The basic idea is simple if a client
differents segments of customers adapting their products to local
appreciates your brand,she/he is likely to recommend it to his friends
clients as well as to different incomes through its product
or family. The results evaluate the desire for recommendation that the
segmentation (L'Oreal Luxe and Customer profile).
customers have (or not!). Profiles:
The 34 brands in several product categories, and the ethical
- Those who opt for 9 or 10 are the Promoters,
positioning makes that a wide group of clients can feel identified with
- Those who answer 7 or 8 are the Passives,
L'Oréal's brands.
- And all the others, who choose a number between 0 and 6, are considered as Detractors.
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4 PILLARS OF CRM
ACQUISITION & ACTIVATION
The brands utilize a personalized Newsletter, collaborations with artists and designers such as Camila Cabello and Isabel Marant in addition to several e-advertisements. E- Reputation: L'Oréal strengthens its image through partnerships with brand's ambassadors such as Louise Bourgoin and Olivia Culpo. Each brand has a different strategy, NYX for example promotes the brand at The Face award. E-PR: L’Oréal have shaped their campaign around influencers. The #YoursTruly campaign for True Match foundation includes celebrities, influencers and bloggers. A male blogger, Gary Thompson, has been included in this line up, demonstrating L’Oréal’s attempt to extend their audience. Advice sites: The L'Oréal brands are constantly quoted by digital specialists such as Glossy.
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RECRUITMENT
FIT CULTURE APP An application that been launched by L’Oreal to helps new recruits in decoding, understanding and mastering the culture of the company. It’s available in 11 languages ( French, English, Russian, Spanish, Mandarin, Indonesian, Etc.)
L’OREAL FINANCE APP EXTERNAL APPLICATION
This universal application is to show financial updates, new releases, most recent webcast and strategic presentation about the Group.
INTERNAL APPLICATION
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RETENTION SOCIAL NETWORKS The company is adopting a strategy to match the social media platform with its brands to create an effective social strategy to target the right audiences. TRADE MARKETING L’Oréal’s digital edge was showcased during the two-day event thanks to special mini-conferences held on the stand. MOBILE MARKETING Attracting client through their smartphones with augmented realities. For ex: snapchat filter maybeline.
LOYALTY EMAIL MARKETING Helps to maintain a close relationship with the clients.
PARTNERSHIPS HOUSE 99 - L’Oreal partnering with David Beckham launching a new websites and products providing all the tools mens need to experiment with their looks in order to express their own evolving style and unique identity. Taking a holistic approach in grooming.
BRAND CONTENT WEB MAGAZINES L’oreal Have their own website magazines giving up beauty tips for beauty. L’oreal beauty magazines in the same time also selling their products that comes with how to use tips. BEAUTY TUBE: L'Oréal web series starring professionals and influencers.
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RECOMMENDATIONS - Not only positioning itself as an ethical and sustainable but provide more precise information about how the products are made. - To incorporate eastern skin care brands to its brands portfolio and health care items such as collagen pills could be an interesting way to be more competitive on the Asiatic market. - To unify the several social media proďŹ les by country and only keep the proďŹ le @lorealpro.
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REFERENCES https://mediaroom.loreal.com/belgium/fr/loreal-la-seule-entreprise-au-monde-reconnue-pour-la-3e-a nnee-consecutive-leader-mondialen-matiere-de-developpement-durable-avec-une-notation-aaa/ https://www.loreal.fr/groupe/gouvernance/agir-avec-éthique/l’esprit-l’oréal http://www.company-histories.com/LOreal-Company-History.html https://www.loreal-finance.com/en/annual-report-2018/LOreal_2018_Annual_Report.pdf https://www.shiseidogroup.com/ir/strategy/mgt.html#content-3 https://www.elcompanies.com/en/who-we-are/culture-and-values https://www.unilever.com/about/who-we-are/our-vision/ https://www.loreal.com/group/who-we-are/our-ambition https://craft.co/loreal https://www.brandwatch.com/blog/interview-agility-innovation-and-using-social-data-at-loreal/ https://www.thinkwithgoogle.com/intl/fr-fr/inspirations/temoignages/loreal-une-experience-program matique-entre-la-data-et-lhumain/ https://www.similarweb.com/fr/website/loreal.com#referrals https://www.decideo.fr/L-Oreal-fait-le-choix-de-Domo-pour-optimiser-sa-performance-digitale_a9224. html https://www.domo.com/news/press/how-loreal-drives-marketing-effectiveness-and-media-neutrality https://www.bloomberg.com/press-releases/2012-07-31/l-or-al-usa-selects-clarabridge-for-social-media -listening-initiative https://customer.guru/net-promoter-score/l-oreal https://formation-pharmacie-loreal.com/best-practices/net-promoter-score-nps-un-indicateur-de-fide lite-client https://www.makeup.com/nyx-face-awards-winner https://www.glossy.co/beauty/skin-care-brand-true-botanicals-refocuses-on-direct-sales https://www.teenvogue.com/story/camila-cabello-and-loreal-paris-announce-makeup-collaboration https://www.linkedin.com/pulse/why-loreals-integrated-pr-strategy-future-david-schulhof http://www.traackr.com/blog/how-loreal-scales-its-strategic-vision-of-influencer-marketing-around-th e-world