Sephora Increases Marketing Productivity by Seventy Percent and Doubles Response Rates

Sephora Teams with Neolane and SPSS for Marketing Makeover
Customer name: SephoraIndustry: RetailVendors help leading beauty retailer improve marketing productivity and drive timely, Business Need: New B2C market-ing communications networktargeted customer loyalty campaigns, in-store and online Technology environment: MicrosoftWindows/SQL Server - SAP forRetail
Sephora is a leading retail beauty chain channels; and it needed to allow for the "Neolane's solutionselling more than 8,000 unique products development of customer profiles toand 250 brands of perfume and premium increase loyalty and revenue per customer. matched our needscosmetics. A fully owned subsidiary of theworld's leading luxury products company, Due to its worldwide expansion, it was perfectly, providing usLVMH Moėt Hennessy Louis Vuitton, also imperative that Sephora's marketingSephora operates 500+ stores in 14 coun- solution be able to effectively scale across with the ability totries worldwide, with an expanding base its global footprint, and be flexible enough coordinate campaignsof more than 125 stores across North to mesh with existing information systems. America where it is the largest retailer of "We set about creating a unified marketing centrally and locally."perfume and cosmetics. Its web site, data mart to consolidate all customer dataSephora.com, is the largest and most from various channels like point of sales, Rachel Marouani,diverse online beauty site on the Internet. web and call center, and thus reduce lead Director of Customer Marketing time in targeting and segmentation," and E-Commerce, Sephora Sephora began experimenting with a customer loyalty program in 2003, working explains Rachel Marouani, Director ofwith an outsourced service provider. At the Customer Marketing and E-Commerce attime, Sephora's primary enterprise market- Sephora. "We were looking for a solutioning tool - a loyalty card program - was that could be rapidly deployed across OBJECTIVESvaluable in helping identify a select group several countries and capable of measuringof repeat in-store customers and their pref- cross-channel responses accurately and Efficiently measure and quickly." report results of cross-channelerences. However, Sephora was rapidly marketingapproaching the functional and scalability Neolane and SPSS put control and Leverage predictive modelinglimits of using a marketing database man-aged by a third party. personalization in the hands of direct to increase effectiveness ofmarketing campaignsmarketersWithout timely access to its customers' Consolidate customer dataacross different touch pointsspecific buying habits and behavior, or the Sephora began an extensive search, and countriesability to effectively identify links between ultimately selecting Neolane's enterprise online and in-store shoppers, in 2004 marketing software solution and SPSS Centralized campaign ®Clementine data mining technology. management with Sephora decided to take its database inhouse, and develop its own marketing Combined, the Neolane and SPSS solu- distributed implementation
program that would assist in driving sales tions met Sephora's need for a multina- RESULTSacross channels and building stronger, tional deployment, featuring wide-rangingmore personalized customer relationships. configuration capabilities and flexible Productivity gains of 70 percentarchitectures. Sephora's technology requirements for Doubled response rates withoutits new enterprise marketing solution were SPSS's Clementine, an end-to-end data increasing spendstringent: it needed a marketing data mart mining solution, allows Sephora to gain Automated ROI measurement:that could be updated daily by direct deep insight into every aspect of its busi- narrowed campaign analysisness, helping to improve performance and time from five days to onemarketers, regardless of their location; the overall system needed to be able to productivity. Neolane's open architecturepredict purchase behavior across multiple platform allows Sephora to leverage SPSS"Since deploying Neolane with SPSS, Sephora has recognized productivity gains of 70 percent for the creation and execution of direct mail campaigns, doubledresponse rates without increasing spend and reduced campaign analysis timefrom five days to one. We're very pleased with the results."
predictive models and generated data to After defining the new segments, Sephoramanage campaigns across all customer developed key p... [download for more]