CHALLENGE

Clarins' loyalty program offers customers great rewards, but the communication of  program relies mainly on BA’s relationship maintenance and the membership booklet. It’s really a pity that the brand and customers did not have enough communication, resulting in customers’ weak memory of the membership program, especially the use of points.

OBJECTIVE

Increase members' participation in loyalty program and enhance customers' viscosity to the brand.

SOLUTION

STORM began combing through the member profiles collected by Clarins in the past and sorting out customer profiles in May 2016. According to Clarins' loyalty program, 10 customized communication messages were designed for 3 member tiers (non-member, member, and VIP member), loyalty program participation statuses (number of points, gift redemption), and purchase statuses (receiving trial packs, purchasing). SMS was used to communicate with members one-on-one which was the most direct and quick way.

In every MOT, our goal was to create opportunities. We wanted to motivate members to return to the counter and make a second purchase. Our MOTs reminded members not only of the benefits they have, but also the number of points they currently have, since many members did not know where to look up their points status or what they can do with them other than ask BA. We used automated customized one-to-one messages which sent at key communication points, in order to drive members to action and increase the likelihood of creating effective future purchases.

PERFORMANCE

The product education communication was more effective and had a higher repurchase rate compared to other brands. The repurchase rate of consumers who have purchased the products is higher than that of consumers who only received the trial pack. In terms of birthday communication, the overall effectiveness of members' use of benefits was very good. Overall, the number of monthly gift redemptions increased compared to the number before MOT was sent (counted until April 2017), and consumers' use of points and benefits had significantly improved. Customers who were motivated by MOT and returned to the counter were also more willing to purchase than in the past, and the spending performance was relatively higher by 2%-6% compared to last year.