CRM Program

Luxury CRM & Clienting

Dalila Delimedjac

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Because You are Worth it!

Why the organization is compelled to invest in

CRM ?

Over billion viewers on website and social media pages

L’OREAL thanks to CRM strategy has become the

champion of connected beauty

L2 acknowledged L’OREAL as one of the top 5 Digital IQ in

the USA, China, Germany & France

CRM enabled them adjust their distribution footprint to

where their customer wants to shop

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L’Oréal is on a mission and has a vision to deliver ‘beauty for all’. If everything goes to plan they’ll attract one billion new customers.

Loreal is aware that consumers have new expectations:a personal relationship with a brand, one-to-one dialogue.

L’Oréal is leading beauty brand in e-commerce

“The market is accelerating, thanks to digitalization, as beauty and digital are really a perfect match. “ L’Oréal CEO Jean-Paul Agon

CRM Vision • Digital is indeed omnipresent ever-present and essential to the lives

of consumers which led to new golden era for beauty• New technologies around data and Artificial Intelligence are opening

new horizons- Beauty is becoming more and more tech• L’Oréal Invests in Founders Factory Digital Startup Incubator

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● over 2000 digital experts

● “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.

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CRM Strategy• Innovation, quality, great brands, hero products and people combining

with digitalization• Design thinking, open labs and fast-prototyping to accelerate innovation• R&D hubs and universalization• Innovation of product & services such as Makeup Genius, Virtual Makeup

Coach, La Roche-Posay UV Patch, and Kerastase Connected Brush help educate consumers

"All the key principles that made L’Oréal win during all these years are even more relevant to win in this new world where digital plays an important role."

"Consumers will not only be ready to buy more beauty products. They will also be ready to pay more for it because they are worth it."

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Valued Customer Experience

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Customer Journey Mapping

Make sense of fragmented and complex customer journeys by automatically segmenting and analyzing consumer conversations at every touch - streamline workflows and enable data-informed strategies and evaluating behavioural data.

• L’OREAL opted for a “test & learn” approach.

• Goal is to understand, thoroughly, the added value of social media intelligence at all stages of the customer relationship in order to apply it to the activities where we think it will have the most the business impact.

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Valued Customer Experience

Organizational Collaboration

Culture and Structure: What Employees say about L’Oreal?❏ Entrepreneurial❏ Flexible❏ Passionate❏ Strategic and practical❏ People oriented❏ Open (and accessible)❏ Focussed (on priorities)

Incentives and Compensation“Be recognized and rewarded: For L’Oréal, each employee should be respected and rewarded for their efforts, their involvement and their contribution to the company’s performance. This approach is behind the Group’s compensation policy all over the world.”

❏ Compensation that is Market Competitive - local salaries are assessed externally to market but also internally❏ Performance Driven Awards - receiving bonuses, Worldwide Profit Sharing (WPS) to give shares to employees, and long-term

security programs for employees including retirement, health care, death and disability plans, and other fringe benefits in line with the regulations and practice in each country.

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Skin Care Customer Life cycle

Makeup Customer Life Cycle

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Ran

ge

Shampoo Customer Lifecycle

1810 15 20 25 30 35 40 45 50 55 60

RA

NG

E

The Body Shop

Garnier

Matrix

Vichy

Le Roche Posay

Loreal Paris

Mizani

Redken

Dark and Lovely

PureologyKerastase

Shu Uemura

Carita

Kiehl’s

L’Oreal Perfumes Customer Lifecycle

1910 15 20 25 30 35 40 45 50 55 60

RA

NG

E

Body Shop

Diesel

CacharelLancome

Roger Gallet

Carita

Ralph Lauren

Viktor and Rolf

Helena Rubinstein

Giorgio Armani

Yves Saint Laurent

Proenza Schouler

Kiehl’s

Maison Margiela

Guy Laroche

Paloma Picasso

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CRM InformationL’Oréal USA analyzes real time social media data

• “The Voice of Beauty” mission works to build sustainable relationships with consumers

• L’Oréal is monitoring what is being said in real time about its 27 brands across social media outlets, including website reviews, product reviews, blogs, Twitter and Facebook.

• L’Oréal ups omnichannel strategy by joining YouCam Makeup app , L’Oréal

partnership accelerates on building omnichannel services to enhance the

consumer experience at every touchpoint”

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● Clarabridge gives L’Oréal USA the tools and support to collect, cleanse, classify, and understand the sentiment of customer feedback posts across millions of social media platforms in real time.

CRM Technology• More than 33 mobile applications

• 38% of media budget invested in digital platforms

• "Beauty companions": digital service that guide consumers and help them choose the right products for them and allow them to test products virtually

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CRM Technology

• Artificial Intelligence• Powered Facebook Messenger bot in partnership

with Automat Technologies• Style My Hair app: used by consumers and

hairdressers• Modiface app• Makeup Genius• Mya Chatbot for candidates and interns

• MI Touch: tablet based system allows salesperson to quickly provide information about a product to a potential customer

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● L’Oréal is leveraging Salesforce Marketing Cloud to get closer to customers and provide simple pathways to navigate L’Oréal’s many products.

● Salesforce Marketing Cloud Journey Builder tool provides the right answers, offering a drag-and-drop graphical user interface for customer interactions, across all media and channels.

● The ‘digital canvas’ Journey Builder delivers to L’Oréal marketers ensures they’re able to map customer journeys and engage with customers and prospects on a more intimate level.

CRM Technology

• Salesforce Marketing Cloud - Makeup Genius• Valtech - Business transformation partner

-> Sitecore - Provides customized digital marketing platform

• Dataroma - Marketing data• Global partnership with YouCam Makeup augmented reality app

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CRM METRICS

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Sales achieved on brands’ own websites + estimated sales achieved by our brands corresponding to sales through our retailers’ websites (unaudited data).

Retention Loreal - Why do customers keep coming back ?

• Company is extremely successful in reaching out to diverse customers (different countries, different income range, cultural patterns)- always providing them relevant product

• Instead of homogenizing brands, they embodied them by country of origin- narrowing factors into marketing virtue

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RESEARCH AT THE HEART OF SUCCESS

L'ORÉAL NET PROMOTER SCORE 2019 BENCHMARKS

What is Net Promoter? NPS is a customer loyalty metric that

measures customers’ willingness to not only return for another

purchase or service but also make a recommendation to their

family, friends or colleagues.

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Cost to Serve

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Because You're Worth It!

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