digital marketing - sephora case
TRANSCRIPT
Βούρτση Κωνσταντίνα - M5AΠ1815017
Δόγια Δέσποινα – M5AΠ1815014
Χαϊδεμενάκη Στυλιανή – Μ5ΑΠ1815038
1000 stores – 23 countries › 450 in USA & Canada
In metropolitan areas & shopping malls
Partnership with JC Penny exclusive beauty retailer
288 brands, over 20.000 products › Prestige brands except for Chanel & MAC
Target group: 25-35 year old women
Pricing: MSRP
Promotion: samples, 2 discounts events each year (loyalty card)
Sephora.com › 30% of the U.S. online market
Beauty Insider Program › 15 million customers signed up
› 80% of Sephora’s sales
Facebook 900.000 fans
Beauty Talk – Q&A forum Twitter 100.000 followers
Online Video/ Youtube › UGC and Professional videos
Mobile initiatives › WAP – optimized for mobile users
› iPhone application
Pros 21.000 products
Discounted mass-market products and prestige brands – beauty “superstore”
Strip malls & easy parking
Full- service salon
Extended target group 44+ women tend to be more loyal
Approachable & in style personality › Considered as “more
down to earth”
Cons No niche makeup brands
“Off-mall” locations
Less retail stores
Less loyal customers (only 7 million in loyalty program)
Weaker digital presence › E-shop & Social media
No mobile offering in 2010
“Fast follower” of Sephora › 29% market share
Pros
First to have active review boards
posting reviews on amazon for products
bought on Sephora
Cheaper prices
Variety of products
Recognition
Cons
Not expert in Beauty
retail products (low
variety and stock)
No retail shop
› No possible product
testing and
experimentation
No loyalty program
Pros
Deep discounts in
luxury brands – “flash
sales”
Prestige brands not
available at Sephora
Cons
Only online shop
No mainstream
brands
Deep discounts only
for a short period
Limited stock
Pros
Convenient
Brand expert
employees
Variety of product
categories
Cons
Not expertised in
Beauty products
Limited line
products
No online shop
No digital presence
Strengths Strong brand recognition
Positioned as an expert in beauty industry
“top of the times” products
customers willing to pay more
Private label products – value for money
Open sell, self-service in store setup
Fun & party atmosphere, no pressure to buy, free trial
Animations – Coordinate messages both offline and online
The biggest online beauty website
Reward program – VIB
Engaged & Loyal customers
Strong content – Talk about things people care
Free samples (on-line and off-line)
Online search advertising (googleAdwords) traffic to website
Strong presence in social Media
Mobile iphone app
Integrated exprerience
Weaknesses
No retail stores in rural areas
Not every prestige brand (e.g. Chanel,
MAC)
Small staff size
No saloon experience
No discounts
Some app features slow to download
No android app
Budget Category Description/ Programs 2011 Budget Allocation
Video Production
(professional Sephora
videos)
•positioned as expert
advisor
•balance between
Sephora’s and UGC
videos
•More “how to” videos cross selling
100.000 (10%)
Video/YouTube
Advertising
•Trend: less reading -
more video viewing
•Attract new customers
•Enhance repurchase
•Inform for promo,
services, events
100.000 (10%)
Video Contest •Take advantage of the
UGC video to create
content •UGC videos boost
credibility of products
•Brand engagement
50.000 (5% )
Budget Category
Description/ Programs
2011 Budget Allocation
Facebook Development •Maintain our strong
presence
•Continue promotions
50.000 (5% )
Holiday / Viral Promotion •Maintain buzz
•Catch attention
•Enhance seasonal sales
50.000 (5% )
Social Partnerships •Partnership with a
women’s block or site
•Sharing audience
•Boosting digital
presence
150.000 (15%)
Mobile •90% of our clients use i-
products
•Expand and improve
iphone app
•App for ipad
250.000 (25%)
Budget Category
Description/ Programs
011 Budget Allocation
Store Kiosks •Boosts in-store
experience
•Ability to compare
products, prices
•Ratings, reviews,
information
•No need for more staff
or further training
150.000 (15%)
Twitter •Strengthens social
media presence
•Drive traffic to website,
youtube
•Not everyone has FB
profile
•Promotes events and
contests
50.000 (5% )
Beauty Talk •Promote the forum
and blend it with FB
•Improve platform’s
environment
100.000 (10%)
Print Catalogs
Half length catalogs
2 times/year
Direct mail pieces email
On Facebook:
Lack of archival capacity
› Same questions over & over again
› not easy way to save & query responses
Not recognition of “superusers”
No way to mask a client’s identity
24% of respondents said yes!
Q & A forum
Strong search functionality
Safe and private environment
Recognition of “superusers” “beauty master”, “beauty heaven”, “VIB”
“Superusers” become opinion makers
Enhance credibility, brand engagement & loyalty
Opportunity to provide a wealth expert advice
Create a banner on Facebook for direct
registration to Beauty Talk
Use links in Beauty Talk to the other social media
pages
How to
blend it with
Facebook?
How to
promote
the forum?
need
Seeking information
evaluation of
alternatives
purchase
use
Post purchase behavior
Promotion activities, Advertisment, Social Media, Website, Beauty Talk, E-mails,
Mobile app
Social media, Mobile app, Website, Beauty Talk, E-mails, In store,
Promotions (catalogs), Advertising
Social media, Beauty Talk, Website, Mobile App,
Promotions (free samples), In-store (trial)
Retail store, Website, mobile
app
Social media (how to videos), Beauty
talk, Website, Retail
store
Social media, Beauty talk, Website, Mobile
app, Retail store
Growth of website visits among current
and new users
Valid and timely update of product
information
Improve and refresh the functionality
and design of the context
Constant monitoring and derivation of
website statistics
Raise of customers loyalty
Customer relationship management- identify most profitable customers
Provide users with perks and rewards
Regular communication with clients by email
Coordination of all digital media for an integrated strategy
Contribution in promotion acts and synchronization of media in a digital campaign › statistics of preferences and profile of online
beauty shoppers
Enhance page functionality more search filters
No 1 online community for anything beauty related
Maintain balance between responses of sephora experts and other members of sephora’s community
Encourage user participation through gifts and rewards
Collect useful Feedback
Increase number of fans
Raise reach per post
Active management and consistent presence
Organization and constant renewal of the content of the page
Redirect user to the official website
Immediate response to messages or to user complaints addressed directly to the company
Encouraging more users for active presence and participation
Continuous rewarding of super-users
Collect useful Feedback
Increase the number of followers
Engage followers
Expand reach and create buzz
Redirect user to the official website
Make followers to republish promotions, messages and information about the brand or products
Collect useful Feedback
Organization and constant renewal of
the company's channel
Emphasis in counseling and in promotion
of the brand
Combination and balance between
Sephora’s and UGC productions
Increase number of shares, embeds and
referrals from other Videos in Channel
Optimization of Website’s mobile version (customized)
Increase downloads of iPhone app
Improve download speed of the various features of the app
App - Functionality that facilitates mobile purchases
App development suitable for iPad
Collect useful Feedback
Increase traffic from online search results
Keep clients for longer duration on the site
Reduce returns
Lowering call center visits
Encourage repeat visits
Enhance communication between clients
Consolidation as the main platform for ratings and reviews regarding the products of Sephora
need
Seeking information
evaluation of
alternatives
purchase
use
Post purchase behavior
Sustain old customers, attract new customers, offer
integrated experience(fun, innovation)
Brand awareness, feedback (beauty talk, social media),
UGC videos, in store traffic
Strengthen brand image, in store traffic,
strong online presence
attract new customers,
growth sales,
brand name awareness, online
& offline traffic, customer service
Added value by content in social
media, site & beauty talk, customer service
Low regret, consistency, re-
purchase , customer service, WoM
Awareness
Bounce rate
Landing page
First visit
Single page visit
Traffic source
Unique visitors
Interest
Direct traffic
Average time on
site
# Pages per visits
Single page visit
Bounce rate
#Scroll down-up
clicks
Click path
Visitor recency
Depth visit
Visit duration
First visit
Return visitor
New visitor
Purchase
Other actions
Downloaded
content
Registrations
# clicks / link
Sales volume
shopping cart
abandonment
rate
Convertion rate
Re-purchase
Repeated actions
WoM
Repeat visitors
Sales per
customer
Awareness
# fans
#posts
Post reach
Total reach
Interest
Growth (%)
Traffic to
website
Purchase
Other actions
Talking about
(likes, comments,
shares, votes or
events, check-
ins, number of
new fans)
Engagement
Posts per day
Response time
Response rate
Re-purchase
Repeated actions
WoM
Talking about
(likes, comments,
shares, votes or
events, check-ins,
number of new
fans)
Response time
Response rate
Amplification rate
= shares/post
Awareness
# followers
#Tweets
Tweet
Impressions
Interest
Growth (%)
Traffic to website
Profile Visits
Purchase
Other actions
Mentions
Tweets Linking to
you
Engagement
Rate
Favorites
Replies
Link Clicks
Re-purchase
Repeated actions
WoM
Mentions
Engagement
Rate
Retweets
Amplification
rate =
retweets/tweet
Awareness
Views
Interest
Traffic to website
Audience
Retention
Purchase
Other actions
Subscribers
Shares & Share
Rate
Coverage, Links
& Embeds
Likes / dislikes
Favorites
Re-purchase
Repeated actions
WoM
Referrals from
Other Videos in
Channel
Comments
Favorites
Likes / dislikes
Awareness
Frequency of use
Interest
Number of
downloads (and
upgrades)
Unique sessions
Time spent per
session
Growth Rate
Application
loading time
Length per visit
Behavior flow
Purchase
Other actions
User retention
and Churn rate
Convertion rate
Transactions
(redemption and
purchases)
Re-purchase
Repeated actions
WoM
Number of app
user reviews
Avg. customer
rating – Like
reviews
Return On Investment -ROI = (Derived Value
- Investments)/ Investments
Funnel Visualization
End Action Rate=%Searchers/% Active Users
Enterprise (Social) Listening Platforms- ELP Text Mining/Analytics: Platform API (Application Programing
Interface) tools
› Facebook Insights: Sephora can constant monitor its page on Facebook
› Tweet Reach: measuring tool evaluate tweets posted (#Sephora), tweet volume, access, cost, accounts who have read or retweet the post, what can affect users about Sephora and its products
Site analytics Solution
