ICI PARIS XL Lost Customers
The perfume business is going through a digital evolution. Online stores are ever more present and clients have a wider range of choice to go and buy their beauty products. They now go shopping offline, but are buying online. An e-shop is already part of the sales solutions of ICI PARIS XL and its competitors, but the biggest clients are still faithful to the bricks-and-mortar. Lately a rather large group of them have stop coming and are not shopping online either. What has happened? Where have they gone? Clients come and go, but this time it were some of their best clients. We needed to find out why they stop shopping at ICI PARIS XL for over a year and at the same time try to win them back.
The main objective was to win as many clients back as possible. And at the same time find out why they had stopped shopping. We chose a Direct Mail combined with a voucher so we could measure the exact return, and as a second layer to the campaign the consumers were activated with an additional voucher and chance to win a prize if they sent us they took part in an online survey. Within this survey we could then find out why they stopped shopping.
Our target audience was split up in two: 1. Perfume buyers, Customers who repeatedly buy perfume. 2. Cosmetics and skincare buyers, Customers who are more focused on cosmetics and skincare products.
We had clearly lost trust with these clients. They were no longer responding to DM’s, eDM’s, online incentives, newsletters,… A different angle had to be taken to convince them to come back. We have a privileged relationship with these premium clients and must keep it in consideration. We invited them to reengage with the brand but not for free! We decided to avoid the lost trust associated with the brand recognition and bring a message of understanding with a premium incentive in line with their past loyalty.
What can happen after a year? You run out of perfume or cosmetics… That was the exact feeling we wanted to establish through an interactive DM. The reader discovers our message by actively emptying a bottle until it completely gone. In this same action we invited them to come back and this through an immediate advantage, slightly higher than the other DM’s we send out in a standard CRM approach. But since we lost trust we sent them the DM in a blank envelope without mentioning the brand, and even after opening they would not discover the brand until they had read our message. This way we avoided the lost trust associated with the brand recognition. Once in active reading we followed our initial message with a personalised letter in which we acknowledge that we had missed their visits for an entire year and would love to find out why. And if they wanted to share their opinion they would have a chance at winning a luxury weekend for two.
To validate the impact of our campaign with compared the results with an average “At Risk” DM. Of the 12.737 lost customers 11,5% were activated with the initial voucher, compared to 1,3% in an average “At Risk” DM. Total redemption of the campaign was 2,2x higher than average and we realised an additional turnover that was 10x higher. Resulting in a net contribution of almost 12x higher than average. Giving us a very high ROI. The value of their shopping basket was also 57% higher than an average ICI PARIS XL client. Next to this we had 206 clients who participated in our survey and a number of great insights to continue to maintain our quality relationship with them. And on top of it all, one of the least content clients, who used her coupon and still had issues took the time to write 1 full page of feedback and turned out to be the winner. Giving us the opportunity to take more time to understand her needs.