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L’Oreal’s Data-Driven Marketing & Digital Focus Continues To Boost Sales

December 3, 2019 Natalie Golub

Shutterstock_1430260025 In this photo illustration the L'Oréal (LOreal) logo is displayed on a smartphone.

L’Oréal is leading the way in beauty product ecommerce sales growth, year over year, due to the company’s investment in its customer data platform (CDP). The beauty giant is leveraging its robust customer data to create more targeted marketing, engage with consumers and drive sales. Ecommerce sales for L’Oréal are up 49% this year and represent 13% of the company’s total global sales.

L’Oréal Utilizes Marketing Data To Boost Ecommerce

L’Oréal is the world’s largest cosmetic company, encompassing more than 35 different brands. An iconic global beauty brand, L’Oréal has more than 100 million customer records, attracts 335 million site visits annually and sends 580 million emails, translating content into 26 languages, every year. For a company as large as L’Oréal, housing consumer information in one database is essential to better understand their customers. L’Oréal’s CDP organizes customer data across multiple touchpoints and structures it into individual profiles, creating a centralized database with a 360-degree view of its customers. The consumer data can be segmented by demographics and spending habits across each of its brands to better target marketing efforts. For example, L'Oréal brand Nyx skews toward younger consumers. L'Oréal’s data allows the company to identify whether those Nyx customers use any of its other brands and apply the findings towards marketing those other branded products to the appropriate Nyx customers.

L’Oréal Is Focusing Digitally To Improve Consumer Experiences

L’Oréal is shifting its marketing strategy away from being just the number one beauty brand, and instead is aiming to be “the number one beauty tech company.” To make that shift, L’Oréal is changing the way it interacts with consumers online to be more successful in ecommerce sales. “In the digital age companies that just sell products will not be successful,” says Stéphane Bérubé, L’Oréal’s Chief Marketing Officer in Western Europe. In 2018, L’Oréal purchased Modiface, an augmented-reality (AR) service offering consumers digital tools to virtually try makeup and hair products. As more sales in the cosmetics industry are moving online, AR is an interactive way to drive consumer engagement and create a more personal experience. According to the Modiface acquisition announcement, Facebook’s VP of Global Account Partnerships, Will Platt-Higgins, said, “By bringing AR into the mainstream, L’Oréal and Modiface are reshaping the beauty experience, and we’re thrilled to see this brought to life on Facebook.”

L’Oréal purchased Modiface, an augmented-reality (AR) service offering to virtually try makeup and hair products.Three phone screens demonstrating AR experience.

L’Oréal is partnering with Facebook to utilize AR on the social media app, providing the beauty retailer the opportunity to get products in front of Facebook’s 2 billion members. Harnessing the power of social media empowers L’Oréal to provide a more seamless ecommerce experience among consumers. This partnership with Facebook is one example of the new ways L’Oréal is growing awareness and generating online sales growth.

L’Oréal Adapts To A Market Makeover

Over the last decade, the emergence of smaller, niche beauty brands has redefined the cosmetic industry’s landscape. Social media marketing has made it possible for indie cosmetic brands to emerge by selling products direct to consumer (DTC). L’Oréal is adapting to the changing industry landscape by utilizing their CDP to target consumers in a more personal way. Lubomira Rochet, L’Oréal’s Chief Digital Officer, says, “L’Oréal is focusing on people-based marketing, and the value consumers can bring in having an open dialog and conversation.” This type of targeted marketing is paying off as L’Oréal has seen its largest sales growth in a decade.

L’Oréal recognized the value in its customer data and began investing in a CDP a decade ago. The consumer marketing data is a key tool for the 100-year-old beauty giant to adapt and continue to stay relevant in the growing ecommerce economy. Similarly, Vail Resorts recently touted their “harnessing the intelligence of data-driven marketing to better understand their customers, personalize messaging and boost sales.” Likewise, P&G noted their shift to propensity marketing to target smart audiences instead of generic demographics contributed to record sales growth. Brands across industries are realizing the value of data and the importance of targeting, both to reduce media waste and to better engage consumers.

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