AS Watson reports success with predictive modelling marketing
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International health and beauty retailer AS Watson Group says its use of predictive modelling technology is delivering successful product launches. The firm has worked in close partnership with brands to help them penetrate specific demographics or enter new markets. Recently this included Jeffree Star Cosmetics launching exclusively at ICI Paris XL in Europe, and in Asia a continuing long-term partnership with Maybelline at Watsons Thailand – both of which achieved targeted results.
“At AS Watson, due to our extensive global knowledge of the beauty industry and CRM data, we are able to help niche brands like Jeffree Star and major brands including Maybelline launch products onto the market,” explains Malina Ngai, AS Watson Group COO.
“Using our integrated online and offline model, this allows us to create these types of brand partnerships to specifically target and engage the right customers.”
L’Oreal and AS Watson Group developed a long-term partnership working together to drive sales, while in 2018, Watsons Thailand partnered with Maybelline on a year-long CRM program.
Supported by the AS Watson DataLab, the group’s customer intelligence team, this campaign was designed to communicate offers to relevant customers through electronic direct mail. Watsons targeted members in three phases in order to recruit new category shoppers, grow each customer’s basket value and engage customers in new product offers.
To ensure the campaign built on data insight to target the right members, Watsons used a three-stage approach to accurately identify customers and ensure they were provided with the most attractive offers.
“Using our integrated online and offline model, this allows us to create these types of brand partnerships to specifically target and engage the right customers.”
This three-stage campaign saw more than 3.5 million emails delivered to members, attracting more than 170,000 customers to buy into the brand. This targeted and focused approach saw double-digit percentage of the brand’s sales directly attributable to this campaign. In addition, Maybelline’s sales and the number of members recorded double-digit growth compared to the previous year.
L’Oreal Thailand’s GM consumer products division Geoff Bellingham said two of the biggest challenges a brand faces are acquiring new customers and then having those customers shop again with the brand.
“Our Watsons Thailand CRM program allowed us to successfully achieve both of those goals for Maybelline. All customers and especially beauty shoppers want relevant, more personally curated offers and this partnership was carefully created to ensure the right offers for right people.
“The activity is just one example of the close and successful collaboration between Watsons and L’Oreal”.
ICI Paris XL launched world-renowned beauty influencer Jeffree Star’s cosmetic range in November, exclusively to customers in The Netherlands and Belgium. To launch the brand ICI Paris XL created a digital campaign to target customers whose data and insight profile indicated they would love the new brand, as well as looking to capture new customers. The digital campaign was created to specifically target those under 35, as this is the brand’s core target market.
Predictive modelling technology was used to identify and communicate with members who had a high tendency to shop for new makeup brands and trends, and these people received customised emails announcing the launch, bringing the social media personality to life, as well as highlighting hero elements of the cosmetics range. This targeted approach saw more than 300,000 customers receive personalised emails, leading to an open rate of 25 per cent. Following this, 40 per cent then visited the brand’s page on the ICI Paris XL website with the result that 70 per cent of members under 35 bought into the range during the launch period.
“Following the success of my brand in the the US, I really wanted to extend my brand’s reach into Europe,” said Jeffree Star. “AS Watson has provided me with an efficient distribution platform as well as the tools to be able to target my fans and beauty lovers that like to create bright, fun and innovative beauty looks.”
Questions & Answers
Q.What specifically allowed AS Watson to successfully launch products for both niche and major brands?
What specifically allowed AS Watson to successfully launch products for both niche and major brands?
AS Watson used its extensive global knowledge of the beauty industry and its CRM data. This, combined with an integrated online and offline model, enabled the group to create brand partnerships to specifically target and engage the right customers.
Q.What were the results of the year-long CRM program between Watsons Thailand and Maybelline?
What were the results of the year-long CRM program between Watsons Thailand and Maybelline?
The campaign delivered over 3.5 million emails, attracting more than 170,000 customers. A double-digit percentage of Maybelline’s sales were directly attributable to this, and both sales and member numbers recorded double-digit growth year-on-year.
Q.How did ICI Paris XL's digital campaign for Jeffree Star Cosmetics target customers?
How did ICI Paris XL's digital campaign for Jeffree Star Cosmetics target customers?
The campaign targeted customers under 35 whose data indicated a preference for new makeup brands and trends. They received customised emails announcing the launch and highlighting product elements, specifically chosen using predictive modelling technology.
Q.What was the engagement like for the Jeffree Star Cosmetics launch in Europe?
What was the engagement like for the Jeffree Star Cosmetics launch in Europe?
Over 300,000 customers received personalised emails, resulting in a 25 per cent open rate. 40 per cent then visited the brand’s page, with 70 per cent of members under 35 buying into the range during the launch period.
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