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SUCCESS STORY

Can inactive customers generate incremental sales?

L'Occitane reactivates its lapsed customers through CRM programmatic

The Challenge

The L’Occitane Group is a global, natural and organic ingredient-based cosmetics and well-being products retailer. The Group has five brands (L’Occitane en Provence, Melvita, Le Couvent des Minimes, Erborian and L’Occitane au Brésil) in its portfolio and is committed to developing high-quality products that are rich in natural and organic ingredients of traceable origins and that are manufactured with respect to the environment.

Given the high cost of finding and acquiring new customers, a sophisticated win back strategy may be the best way to grow a profitable CRM database.

The Solution

Numberly’s CRM programmatic solution allows advertisers to reactivate former or inactive customers which are non-addressable via email.

Thanks to data onboarding, CRM segments that need to be re-engaged are associated with identifiers that could be activated through Programmatic platforms.

This CRM programmatic campaign enabled L’Occitane to renew contact with aging customers with declining returns via Programmatic Display advertising, in the same personalized way as with a classical email campaign.

This campaign’s KPI was based on the incremental revenue per customer.
The uplift is defined as the difference between a test group and a control group, allowing for the isolation of the real impact of the campaign.
Conversions were measured across devices (web, mobile, tablet) and channels (on and offline).

The Results

82% inactive customers have been associated with an identifier during the data onboarding process. This population could be potentially activated through Programmatic.

An 11.4% uplift on the conversion rate has been measured.

A 0.4% uplift on purchasing frequency.

These three KPIs thus led to a 9.1% uplift on incremental revenue per customer, reflecting the real impact of the campaign.

Key Figures

82 %

of inactive customers were reachable via Programmatic Display

+9.1 %

Uplift in incremental revenue per customer

Measuring 3 constituting uplifts incremental revenue per individual

Evolution of the increments of the individual conversion rates (+11.4%), the average basket (-2.5%), the purchase frequency (+0.4%), and the revenue per individual (+9.1%).

Reactivator® is an innovative product that is fully optimized and incentivized on generated, real incremental revenue. It allows us to renew contact with former customers.

Mathieu Staat, CRM Director, L'Occitane