Success stories
March 18, 2022

Oriflame Built a Sales Funnel in a New Channel: Automatic Communications in the Chatbot Bring 545% ROI

  • GoalsIncrease revenue gained from direct marketing by improving communications in messengers
  • Reach a new audience with emails
  • SolutionsLaunch a chatbot for Telegram and a social messenger
  • Integrate the product catalog in the chatbot, launch bulk mailings and tailor-made trigger scenarios
  • Results545% ROI in six months
  • ParticipantsOriflame: Head of CRM, a MarTech expert, and a CRM specialist; Botmechanic: CEO and Customer Success Manager;
  • Mindbox: two Customer Success Managers
  • ITBotmechanic chatbot
  • Marketing automation platform
  • Business size1.5 bln EUR in annual sales revenue
  • 1,000+ different items for sale

Oriflameis a leader in direct sales among cosmetics companies. Oriflame has been highlighting people's beauty globally for 50 years. The company has representative offices in 60 countries and 3.6 million Brand Partners worldwide

Elena Evdokimova

Elena Evdokimova, Head of CRM, Oriflame Russia

Cosmetics company Oriflame has been interacting with its customer base using Mindbox since 2015. The platform enables Oriflame to add more data in unified customer profiles, to launch bulk mailings and trigger scenarios, and to personalize offers in stories and pop-ups. In 2021, the company introduced a new communication channel, i.e., the chatbot for Telegram, in order to reach a larger audience and increase revenues from direct marketing. As a result, the chatbot acts as a simplified website version for the item search and a channel for instant bulk mailings and personal messages simultaneously. Oriflame launched the first mechanics in just 4 weeks, and the chatbot was paid off in 2 months.

The chatbot is mainly used by Brand Partners. They bring the most revenue to Oriflame. Brand Partners order products at discount prices and then resell them at catalog prices. They can also invite others to join Oriflame and build their own teams, while still retaining their commission.

The Results of Launching the Chatbot

545% ROI

We made our performance-based calculations for 2021 based on figures from April 1–August 31 (inclusive). Oriflame asked us not to reveal the exact figures. The data is provided by the client and carried out by last click attribution using the following formula:

ROI from Mindbox

Botmechanic provides Oriflame with a 545% ROI. Every $1 invested in the platform brings a return of $5.5.

Oriflame reached ROI in just 2 months following the launch of the chatbot and mailings:

Actions taken

Start of project, launched bulk mailings   Launched trigger mailings for category browse Launched trigger mailings for abandoned carts   Launched the Wellness Marathon

Month

March 2021 April May June July August

ROI

0 -4% 113% 344% 488% 545%
Since August, Oriflame has been working on the Wellness Marathon. We’ll be sharing the results in a separate post.
3.5%
average conversion-to-purchase rate for trigger mailings sent through the chatbot
4weeks
to fine-tune scenarios and mechanics for mailings
2months
to achieve a positive ROI

Testimonial

Messengers are a much easier marketing channel to use than email. They're cheaper than SMS, and have great potential:

— increased coverage rate: today people prefer messengers over social media;

— data recording and collection: the chatbot is easier to subscribe to;

— open rate: around 80% of your mailing subscribers are likely to read your messages.

When integrated with Mindbox, the chatbot makes it possible to:

— segment audiences and personalize messages;

— launch targeted and trigger-based communications;

— insert gameplay and polling wigdets;

— announce events and host free online beauty marathons (these include lessons, master classes, and live streams).

Ekaterina Piskun

Ekaterina Piskun, CRM Manager, Oriflame Russia

Messengers are a much easier marketing channel to use than email and they're cheaper than SMS

The Challenges Faced and the Solutions Found

When comparing Q3 2020 and Q3 2021, we found that the email channel is losing active subscribers from the base, with its CTOR (click-to-open rate) falling from 14.15% to 9.94%, according to a Mindbox report. This prompted Orliflame to find new ways to boost subscriber engagement with mailings.

One option was the creation of sales funnels in the additional channel using messengers and chatbots. This would give Brand Partners the choice of which communication type suited them best.. Meanwhile, it was important to evaluate the chatbot's performance without increasing the amount of expenses for its maintenance. Mindbox's new tools for automating messenger mailings were able to provide Orilflame with a solution and increased the speed of messenger communication preparation:

—easier to design compared to emails;

—free messaging, unlike SMS.

As a result, Oriflame's chatbot supplemented trigger and bulk email-mailings with instant communication with Brand Partners. The chatbot has an embedded simplified product catalog and creates "on-the-spot" personal offers.

Testimonial

The Mindbox platform has already been up and running, helping us to support all the communication channels and to personalize our content. So, we reached out to the Customer Success Manager when we had to deal with the decrease in our active subscriber base. It was their Manager who suggested we introduce the chatbot.

I am happy to say that Mindbox's Customer Success Managers are qualified experts that not only know how to resolve technical issues, but also how to suggest alternative ways for meeting our business goals.

Elena Evdokimova

Elena Evdokimova, Head of CRM, Oriflame Russia

Goal Solution
Create an additional channel for communication with Brand Partners that is cheaper to maintain than the email and SMS channels Created a chatbot for Telegram and VK, which provides free messages and a less costly design.
Make website navigation easier Embedded a simplified product catalog in the chatbot for Telegram and VK and grouped the items into categories
Increase marketing communications coverage Launched bulk mailings and tailor-made trigger scenarios to be sent by the chatbot
Increase conversion-to-purchase rate Personalized communications sent by the chatbot: fine-tuned recommendations for the algorithms and triggers for category browses and abandoned carts
Encourage customers to share their personal data, shorten questionnaires and make them more approachable Developed scenarios for data collection through different entry points (Oriflame website, emails, Telegram) so that data could be merged into unified customer profiles. In each communication channel, customers are asked to leave the minimal amount of data once
Collect and store unified data about customers and their actions in the chatbot and merge them with the data from the other channels Customers are identified when they click on links in emails. This avoids repeated requests for their personal data, e.g. their phone number. We integrated the chatbot with Mindbox to merge the data from Telegram and VK into the unified customer profiles. We set up the data transfer through webhooks

Testimonial

As a user, I’ve come across chatbots many times. However, this was my first time creating a chatbot. Fortunately, the Botmechanic team came just at the right time to lend a helping hand!

Strong points

—User-friendly interface.

—You can create your chatbot without having to write a single line of code.

—You can maintain the chatbot yourself and promptly make any changes.

—The platform enables chatbot users to switch to a support center specialist.

What to improve

—The functionality lacks certain fine details. For example, we would like to have a search bar.

—It’s not possible to delete a trigger or a mailing. For example, you no longer need a test trigger you created, but you can’t delete it.

—I wish the developers would be more eager to consider the users' suggestions or to launch some kind of cool update. Typically, when having to deal with an issue, the Project Manager suggests getting by with the limited range of features the platform offers instead of upgrading the platform.

Anna Kotlova

Anna Kotlova, MarTech expert, Oriflame Russia

Testimonial

It is crucial to set the main goals before starting the development process. Once you’ve created a chatbot, it’s important that its effect lasts more than just an instant. It needs to be permanent and sustainable. Focusing your effort on the mechanics is particularly helpful as you only need to fine-tune them once, and then you can simply maintain their operation. In Oriflame's case, this means weekly automatic mailings sent by the chatbot.

The client’s team already reported that they could not remove a trigger or a mailing that they no longer needed from the chatbot. We resolved this issue, now making it possible to remove triggers and mailings.

Karina Kavarnali

Karina Kavarnali, Customer Success Manager, Botmechanic

Which Mechanics did we Launch with the Chatbot?

We created user scenarios in order to launch the chatbot. These scenarios included a large number of functions: from making a purchase to providing mailings with recommendations and tips on how to promote the products. We used the Botmechanic service to tune up the mechanics for two free channels simultaneously (Telegram and VK). In the future, we plan to add WhatsApp communications without any additional setup.

We integrated the chatbot with the CDP. This not only allows us to merge Brand Partner contact data into the unified database for communication in messengers, but also to store the data regarding their actions on Telegram and VK. All the bulk and trigger communications are configured in the CDP as well.

Read more about the launched mechanics:

  1. Our new Brand Partners receive a link to the chatbot in a greeting email. The homepage offers several scenarios of info messages: from item digests to tips on how to build your career as a Brand Partner:

    Main menu
    Main menu
    List of item categories
    List of item categories
  1. The chatbot contains links to the main website sections. Links are grouped into categories to facilitate navigation.

  1. Once the user clicks on a category, they get a recommendation message in 2 hours with the products from the category they viewed. Trigger mechanics are designed on the Mindbox platform, where ML-based recommendations of items are included. This enables the company to have a deeper insight into the audience's preferences and help the customers choose what to purchase.

    Recommendations via the chatbot
  1. Chatbot subscribers receive mailings with promotions:

    Promotional offers

Development Plans: Launching Chatbots in all Local Offices

Oriflame decided to apply the experience of the Russian office to other offices around the world. To implement the initiative, we will be creating individual ad studios where we’ll transfer pre-set mechanics. The local marketers will only have to translate the texts to the local languages.

Meanwhile in Russia, we are launching a new scenario to mark Oriflame's 55th anniversary.