Beauteka: revenue growth from omnichannel loyalty programme and campaigns

6 Feb ‘19

BeautekaBeauteka opened its doors in 2016, selling cosmetics, toiletries and health foods through online and high-street retail. Beauteka came to Mindbox in April 2018 with 19,000 email addresses, 39,000 mobile phone numbers and 39,000 customers participating in its loyalty programme.

Omnichannel marketing is a holistic approach that uses every available channel to communicate personalised offers at a time and place that best suits the customer.

Here’s what can happen without omnichannel marketing:

One of our colleagues recently spotted an enticing promotion on the website of a prominent brand-name clothing store, offering 20% of all items. He stopped by the shop that evening and asked for his discount at the checkout, but the assistant knew nothing about the offer. Our colleague showed her the website with the offer on his phone. The surprised checkout assistant went away to call somebody for confirmation. In the end, our colleague got his discount and we got a good example of what happens when marketing fails to bridge the gap between online and offline retail. Interestingly, the offer was gone from the website the following day.

Beauteka marketing team

The Beauteka brief

“Our online and offline retail existed independently of one another. In order to send any kind of offer to our customers, we first had to export the databases from our site and our POS system separately. We had a separate system with customer data for the in-store (offline) loyalty programme.

Sending out mass mail was by no means a simple task. We had to inspect all the databases, find the right people, clean up the data, import it into our mailing platform and put together a template before we could send anything. The only triggered campaign we had was an abandoned cart routine – that was the most we could do. What we wanted was a self-sustaining buzz, where customers would communicate more, for longer, and in different places.

From the outset we wanted to get our marketing right. We envisioned a rapid process of generating hypotheses, testing them in the field, gathering results and acting on them immediately.

We had three goals:

  • Gather all our customer data together in one system so we could study their customer journey and collect analytical data.
  • Manage our marketing efforts with that same system and profit from its analytical capabilities.
  • Shorten the cycle of formulating and testing hypotheses without involving IT staff.”

Quantitative KPIs:

  • Increase customer repeat visits to twice a month.
  • Increase average spend across all purchases by 20-30%.
  • Attract customers to all retail channels – pharmaceuticals, FMCG and also to the website, where customers benefit from greater convenience and have more contact with the company.

What we achieved

Email revenue grew from 13.4% to 58.8% of all revenue from April through September 2018.

Percentage of all revenue attributed to email

58.8%

Revenue from email, up from 13.4%
Measurement validated by control group.

1 service

Instead of three for creating promotions, managing
loyalty programmes, triggered and mass mailings.

+100%

Growth in average online spend from April through August.

Why Mindbox

Here’s what Beauteka wanted from an integrated marketing platform:

  • Simplicity and flexibility so that it can be reconfigured quickly to match evolving marketing strategy.
  • To be affordable and pay for itself in ROI.
  • Ability to work with a large customer database.
  • Short turnaround for deploying new initiatives.

After comparing systems available on the market and voting within the company, Beauteka chose to work with Mindbox.

This is the story of how we replaced incompatible databases and systems with omnichannel communications and targeted marketing.

Extracted order from chaos in services, processes and communications

Beauteka’s business was complex from the outset. They had three channels of interaction with customers: two high-street shops with offline loyalty programmes (each running on separate systems) and a website that was technically impossible to connect to either of the other systems.

As a result there was no hope of having proper analytics, and so no chance of gaining a clear picture of the full customer experience. If a customer made a purchase in one shop, then another, and then a third purchase on the website, that one customer would show up in Beauteka’s databases as three different people. Consequently, they could receive the same communications three times, potentially even with a different promotion in each message.

Beauteka marketing team's depiction of their process prior to Mindbox
Beauteka marketing team’s depiction of their process prior to Mindbox
Beauteka marketing manager

What Beauteka says about it

We needed an analyst, a marketer and a programmer just to deploy a promotion and then to figure out what was bought online, what was bought in-store, and how these behaviours were connected.

  • Servers for promotions and loyalty programmes were failing under heavy load.
  • We had no customer behaviour history.
  • All we could do in terms of promotions was to offer discounts to everyone.
  • Establishing customer dialogue was a complicated matter.

We brought together our analysts (who work with promotions), our marketing and email marketing teams. We set up synchronisation of all data from our website and online customer accounts to Mindbox. We replaced two separate loyalty programme and marketing management servers with our single Mindbox platform.

Before

To deploy a promotion in our online store and two POS systems, we previously had to:

  • write a detailed specification for the promotion logic,
  • manually gather all the necessary data, including inventory codes,
  • send all that data to the IT team and online shop managers.

With all this done, the IT team and the high-street shops would each configure the promotion in their own systems according to our specification. After that there was no way of determining whether the promotion was a success or not.

After

Now just one marketing team member can quickly configure a promotion in Mindbox. They specify the rules for participation, select a segment of customers and goods and set the promotion start and end dates. Once the promotion is over, all the results are available in reports.

There’s no need for the IT team to get involved. Promotions are deployed simultaneously across all channels at the click of a button.

Beauteka marketing team's depiction of their process since deploying Mindbox
Beauteka marketing team’s depiction of their process since deploying Mindbox
Beauteka marketing manager

What Beauteka says about it

  • The shop can now easily handle peak visiting times. Cash registers work faster because individual customer discounts are now calculated on the Mindbox platform. Previously the POS terminals were slow, which resulted in large queues and dissatisfied customers. Some would even abandon their baskets and leave if there were more than three customers in the queue ahead of them.
  • Customers can use their phone number instead of a card for identification in the loyalty programme. This is convenient for checkout assistants because customers are far more likely to agree to a simple registration using their phone number, plus it’s convenient for the customers because they don’t need to carry yet another card around. Overall there’s much less friction. We also save money by not issuing plastic cards.
  • In Mindbox we now have a single source of truth for pricing. Gone are the days of coordinating prices between the internet shop and high-street stores. Pricing information is fed into Mindbox where it is processed and sent off to the online shop. Previously it would have taken three or four of us, category managers and IT staff, working as a team to enter prices. Now it’s a simple job for just one person.

Introduced unified customer profile with online and offline history

One of the fundamental requirements for a seamless loyalty programme is a healthy customer database with a record of all online and high-street shopping activities. You need this in order for customers to have the same experience communicating with the company, regardless of whether they’re chatting on the website, corresponding via email or talking to an assistant in a high-street store.

Beauteka was working with two databases. One was for the online store and the other was for the high-street store loyalty programme. We took customer data and orders from the internet database, and we took phone numbers, purchasing history and loyalty points balances from the high-street database. We gave customers access to their points balance and transaction history in their online account, and we set up synchronisation of relevant data to customer profiles.

When we started merging the databases we found many duplicates, where one and the same customer turns up as multiple individuals. We set our deduplication algorithm to work straightening everything out. This is an algorithm that checks each customer record before adding it to the consolidated database. It sniffs out duplicate profiles and merges them into one. This lets us store all customer data in one place and keep it updated in real time.

First promotions and campaigns

Previously it was impossible to launch a marketing campaign without assistance from the IT team. They acted as administrators, setting up and testing the business logic. This alone took up a lot of their time, and then they were also engaged in discussions about the process.

Mindbox removed this bottleneck and allowed the marketing team to handle all promotions and analytics by themselves.

Information and analytics were also in need of automation and improvement. Beauteka and Mindbox cooperated closely to address this issue:

  • Ported the main routines over from the old system, namely the welcome feed and abandoned cart routines. The welcome feed provides an introduction to the company, and the abandoned cart routine encourages order completion.
  • Launched campaigns from the Mindbox best practices library, including abandoned item view and customer reactivation campaigns. There are now 22 automated campaigns running in total.
  • Made mailings more personalised and interesting through recommendations and segmentation (for example, loyalty programme customers were segmented by cashback, activity and average spend).

Launched an omnichannel loyalty programme

With all data centralised and unnecessary services and processes eliminated, we were ready to revamp the loyalty programme into a seamless solution encompassing online and high-street retail.

First we configured the basic fundamentals in Mindbox – 3, 5 and 7% cashback in loyalty points from purchases with the tier depending on the customer’s total spend in a calendar year. The difference with the omnichannel loyalty programme is that customers always see the same prices in high-street locations, in the online store and in email communications.

Loyalty programme in customer account on Beauteka website
Loyalty programme in customer account on Beauteka website

Preparing omnichannel campaigns

The marketing team at Beauteka can now create marketing campaigns and broadcast them to customers through a single channel, as well as through multiple channels simultaneously or sequentially. In other words, they can now run omnichannel campaigns.

Omnichannel marketing is simpler and more convenient for both the customer and the marketer. We analysed the steps required to run a promotion involving emailing customers a discount code to motivate them to make a purchase from a high-street store.

We compared the steps required to launch a campaign with a discount code for online and high-street retail. Previously the marketing team would have had to:

  1. Plan a triggered message in the email marketing platform.
  2. Generate discount codes in the promotions system.
  3. Ask the customer to bring the discount code with them to the shop.
  4. Manually keep track of discount code and promotion validity period in the promotions system.

With Mindbox, a single team member has to:

Plan a triggered email and set up the promotion in their centralised marketing management platform. The system takes care of the rest.

Beauteka promotions

Omnichannel repeat purchase motivation campaign A few days after making a purchase from Beauteka (whether online or offline) the customer receives a triggered message recommending new items and offering extra loyalty points for their next purchase. If the customer decides to take advantage of the offer, the system automatically awards the promised additional points.

One marketing manager can set up a promotion like this in 7 minutes, where as previously it would have taken 7 days. All the customer has to do is to read the email and tell the shop assistant their phone number at the checkout.

Omnichannel triggered feed to encourage repeat purchase

Omnichannel reactivation campaign. If a customer has not made a purchase (online or high-street) in more than 40 days, we send a message offering extra loyalty points if they make a purchase within the next 10 days. When the customer reads the email, we send a notification to the POS platform so that the customer can get their bonus in the high-street stores using their loyalty card or phone number for identification.

If the customer didn’t read the email (didn’t open it) but comes to the shop anyway, the POS system won’t have received any notification and so the promotion will not be applied.

Omnichannel reactivation email

A promotion like this can be set up by one person in around 10 minutes. They can add or exclude any channel, outlet or segment. The customer benefits too – all they have to do is read the email and then they can claim their discount without any need for codes or coupons.

Simpler and easier communications

Thanks to Mindbox, the Beauteka marketing team now configures its promotions in a single system, has proper segmentation at its disposal and runs a single, seamless loyalty program for all its customers.

If a customer makes a purchase at a high-street POS and registers in the loyalty program using their mobile number, they receive an invitation to activate their loyalty account on the Beauteka website where they can manage their points balance. When customers go online, Mindbox recognises them and can send mailings and display recommended goods on the Beauteka website.

In addition, the customer receives information about offline events and promotions. And so Beauteka interacts with its customers in different channels and its customers interact with Beauteka in different places.

Beauteka has only just begun experimenting with cross-channel communications and campaigns, but the most important groundwork has been done – together with Mindbox, Beauteka has built the infrastructure it needs to step up to full omnichannel marketing.

Future plans:

  • Individually targeted programmes for customers (favourite brands, favourite items).
  • Behaviour-based targeted programmes (preferred retail location, purchasing frequency, purchasing times, average spend).
  • Testing with control groups (to optimise channel, timing, frequency and content).
  • Further develop automated communications (email, web push, online account and others).
  • Improve collection of contact details and introduce authorisation in loyalty programme via social networks and mobile app.
Veronica Goryachaya,
Beauteka marketing director

What Beauteka says

We examined a lot of solutions in our search for a loyalty programme platform. Mindbox came through as the best fit for our requirements. It satisfied our need for customer segmentation and customer journey management, provided a seamless arena for communications, reduced manual overheads and greatly simplified the process of putting marketing initiatives into action.

The Mindbox team swiftly set up integration with SAP, trained and consulted our staff and provided daily support for all processes. A major benefit of working with Mindbox is their competency in analytics and cutting-edge CRM technology, which they readily share with their partners on a daily basis.

The Mindbox team

Anton Romanenko

Anton RomanenkoProject manager

Ilya Tsirulnikov

Ilya TsirulnikovLoyalty programme product owner

Nadezhda Marincheva

Nadezhda MarinchevaMarketing director

Lana Sharikova

Lana SharikovaEditor
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