L’Oréal leads the global beauty industry by decoding digital transformation

Challenge:

As one of the world’s leading cosmetics companies, French-based L’Oréal sought to rewrite the future of the beauty industry by modernising its digital infrastructure. To achieve this aim, the renowned global beauty retailer endeavoured to bridge the physical, digital and virtual worlds to produce augmented and high-touch retail beauty experiences. In a hyper-creative and dynamic industry, bringing data science and technology into the CX equation was high on the company’s strategic agenda.

Solution:

Tealium CDP provided the mainstay of L’Oréal’s marketing intelligence to power their ambition. By unifying data into a single source of truth, L’Oréal could capture and analyse all real-time customer interactions to extract meaningful insights for intelligent CX.

The CDP provided L’Oréal with certainty in their data quality and data integrity, which gave them a newfound confidence to create more accurate and relevant two-way customer communications.

Results:

With Tealium CDP, L’Oréal’s media campaign achieved a remarkable 22.22% conversion rate, which is markedly higher than the average conversion rate. Additionally, the click-through rate increased to 55.08%, which was an astounding 26.25% improvement from the pre-CDP adoption state. For larger brands within the L’Oréal Group, such as Lancôme, a substantial 100,000+ customers are now activated monthly via Tealium CDP.

Setting the Scene for Digital Potency in a Web 3.0 Era

L’Oréal’s vision was a simple, yet ambitious one – to understand their customers’ needs and behaviours in a drastically different digital market to be able to respond in a timely, relevant and authentic way. Put differently, their goal was to create the richest and most valuable CX that would enable their customers to discover the best in beauty.

At the start of their digital transformation journey, L’Oréal identified that a CDP-enabled data foundation would be key to turning their ambition into a reality. L’Oréal was experiencing disparate data from both online and in-store channels. The brand also needed to accelerate their first-party data strategy for omnichannel excellence.

Increased digital hyperconnectivity led L’Oréal to recognise that customer behaviours were evolving at a rapid rate, with increased consumer reliance on digital engagement touchpoints. With innovation at the forefront, L’Oreal sought to advance their CX proposition, build business resilience and optimise revenue streams in a Web 3.0 era.

Importantly, L’Oréal not only wanted to remedy the CX problems of the present, but to adopt a versatile and scalable solution that would carry them far into the future as the global beauty market leader.

Tealium CDP Is the Mainstay of L’Oréal’s Marketing Intelligence

Tealium CDP provided the mainstay of L’Oréal’s marketing intelligence to power their ambition. By unifying disparate data into a single source of truth, L’Oréal could capture and analyse all real-time customer interactions to extract meaningful insights for intelligent CX.

The CDP provided L’Oréal with certainty in their data quality and data integrity, which gave them a newfound confidence to create more accurate and relevant two-way customer communications.

Tealium has accelerated L’Oréal’s first-mover advantage by decoding data-driven digital transformation to reinvent the future of beauty. Central to our digital transformation agenda is delivering trusted digital experiences that consistently exceed customer expectations. As the mainstay of our marketing intelligence, Tealium has empowered L’Oréal to transform into a digital-first company that prioritises trust and transparency throughout the retail beauty experience. In turn, L’Oréal can look to the future with confidence as we reap the rewards of data-driven innovation in a Web 3.0 era.

Souparna Bose

IT CRM Product Manager, CRM Technologies – L’Oréal

Organisational Data Democratisation

Tealium CDP established a trusted 360-degree view of each customer to simultaneously enable multiple strategic objectives and accelerate commercial performance.

Democratising access to quality data facilitated clearer and more sustainable CX decisions, which led to increasingly more relevant and authentic experiences for the individual customer. The value went further by allowing real-time analysis, with the ability to respond to customers at the time that mattered most in the decision making and purchasing processes.

Improved Time to Market

Media efficiency and conversion rates experienced significant uplifts through the creation of lookalike audiences and more efficient dynamic segmentation to enhance remarketing. In turn, L’Oréal was empowered to deliver the right message to the right audience at the right time.

Real-Time Hyper-Personalisation at Scale

Responding in real time is key, and Tealium’s solution enabled L’Oréal to establish an array of reactions to possible behavioural scenarios for trigger-based activation. With preemptive customer insight, L’Oréal removed friction in the omnichannel shopping experience – from the initial awareness stage through to purchase and beyond.

Remarkable Results Redefine the Beauty CX

Retargeting of cart abandoners is merely one of L’Oréal’s Tealium-enabled success stories. With Tealium CDP, L’Oréal’s media campaign achieved an impressive 22.22% conversion rate, which is markedly higher than the average conversion rate.

An email campaign targeted to cart abandoners yielded significantly higher click-through and conversion rates. With Tealium CDP, the click-through rate increased to 55.08%, which was a 26.25% improvement from the pre-CDP adoption state. Additionally, the conversion rate increased to 4.38% from 3.98% in the same period pre-Tealium CDP adoption.

For larger brands within the L’Oréal Group, such as Lancôme, a substantial 100,000+ customers are now activated monthly via Tealium CDP.

The multifaceted business benefits of Tealium CDP adoption extended to enhanced media efficiency via Google Ads, with up to a 25% higher conversion rate. Moreover, return on advertising spend (RoAS) for the media retargeting audience is almost double that of the same period pre-Tealium CDP adoption.

Future-Ready Compliance, Safety and Security

With Tealium CDP, L’Oréal endeavours to lift their customer loyalty to the next level. With a CDP-enabled trusted customer view, L’Oréal can decode data-driven digital transformation to cater to all customers’ needs on an individualised basis in real time.

Enhancing loyalty, however, commences with the customer consenting to the brand relationship. Amid third-party cookie deprecation, the reliance on first-party data is now essential. Today, L’Oréal has the perfect means to collect, analyse, act and react to the conversations their customers are willing to have with them.

Additionally, privacy laws in the Asia-Pacific and Japan (APJ) region have continued to evolve at a relatively rapid pace to maintain the efficacy of privacy safeguards. Governance over privacy and security is, therefore, paramount and subject to ever-increasing regulatory scrutiny. Tealium CDP-enabled data integrity and data security have empowered L’Oréal to create and implement a future-ready multimarket privacy strategy.

Reinventing the Future of the Global Beauty Industry

In a Web 3.0 era, Tealium is the mainstay of L’Oréal’s marketing intelligence, enabling an accurate anticipation of customer needs to deliver authentic, augmented and high-touch CX that exceeds customer expectations. With Tealium, L’Oréal is poised to sustain market leadership by decoding data-driven digital transformation to reinvent the future of the global beauty industry.

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