L’OCCITANE en Provence

A retailer in France uses analytics-driven behavioral segmentation to create finely-tuned campaigns with a potential to boost online revenue by nearly 2,500 percent, and conversion to sale by almost 1,700 percent as compared with nontargeted campaigns

Published on 28-Dec-2011

Validated on 04 Jun 2013

"By segmenting visitors based on behavior and tailoring email content accordingly, we are able to deliver highly personalized messages that generate much higher open rates, conversion rates and revenue per email. Instead of trying to second-guess our customers, we can present them with offers that we know will interest them." - Director of Ecommerce, L’OCCITANE

Customer:
L’OCCITANE en Provence

Industry:
Retail

Deployment country:
France

Solution:
Cloud Computing, EMM - Digital Marketing Optimization, Smarter Commerce, Smarter Marketing, Smarter Planet, Web Services, Business-to-Business

Smarter Planet:
Smarter Solutions for Retail

IBM Business Partner:
e-Dialog

Overview

L’OCCITANE en Provence is an international retailer of body, face and home products based in Manosque, France. It was founded in 1976 by Olivier Baussan as a company that celebrates and preserves the traditions of Provence and the Mediterranean. Subsidiaries were established in the United States, Hong Kong and the United Kingdom in the 1990s. Today, L’OCCITANE has boutiques in major airports, cities and generally high-end shopping districts, with a presence in nearly 90 countries. In the United States alone, L’OCCITANE employs more than 800 people serving approximately 160 boutiques.

Business need:
L’OCCITANE saw the signs of customer email overload, but still wished it could promote all of the same specials via email that customers would see during a visit to one of its brick-and-mortar boutiques. Its marketing team was certain that there had to be a way to get more value from every email campaign dollar without overwhelming recipients. The company sought a market segmentation strategy based on the actual online buyer behavior of its customers, along with a way to quickly and easily test response to variations in the offers.

Solution:
When L’OCCITANE was looking for a way to gain the attention of customers without stuffing their in-boxes with news of every promotion, it turned to a solution that combined highly targeted messaging with permission-based emailing. The cloud-delivered analytics solution captures and analyzes customer behavioral data and compiles it with customer-submitted profile data to create optimized segmentation information. Continuously building and refining customer profiles as new data is collected, the solution enables L’OCCITANE to select segments of any size and level of product affinity.

Benefits:
· New segmentation capabilities helped L’OCCITANE boost online revenue by nearly 2,500 percent, and conversion to sale by almost 1,700 percent · Targeted messaging led to 65 percent higher email open and 6.5 times higher unique click rates as compared with the nontargeted control group · With a segmented approach, L’OCCITANE can now easily accommodate secondary offers that are available in its stores as well as major product line campaigns

Case Study

L’OCCITANE en Provence is an international retailer of body, face and home products based in Manosque, France. It was founded in 1976 by Olivier Baussan as a company that celebrates and preserves the traditions of Provence and the Mediterranean. The first shop and mail order service opened its doors in Volx, France, in 1980. Subsidiaries were established in the United States, Hong Kong and the United Kingdom in the 1990s. Today, L’OCCITANE has boutiques in major airports, cities and generally high-end shopping districts, with a presence in nearly 90 countries. In the United States alone, L’OCCITANE employs more than 800 people serving approximately 160 boutiques. In 2010, the company became listed on the Hong Kong Stock Exchange.

The Opportunity

L’OCCITANE saw the signs of customer email overload, but still wished it could promote all of the same specials via email that customers would see during a visit to one of its brick-and-mortar boutiques. Its marketing team was certain that there had to be a way to get more value from every email campaign dollar without overwhelming recipients. The company sought a market segmentation strategy based on the actual online buyer behavior of its customers, along with a way to quickly and easily test response to variations in the offers.

What Makes It Smarter

When L’OCCITANE was looking for a way to gain the attention of customers without stuffing their in-boxes with news of every promotion, it turned to a solution that combined highly targeted messaging with permission-based emailing. The cloud-delivered analytics solution captures and analyzes customer behavioral data and compiles it with customer-submitted profile data to create optimized segmentation information. Continuously building and refining customer profiles as new data is collected, the solution enables L’OCCITANE to select segments of any size and level of product affinity, and direct specific promotional offers via email to those populations. Able to create segmentation results quickly and ideal for testing new offers, the solution positions the company to respond with agility to changing market conditions.

Real Business Results
· New segmentation capabilities helped L’OCCITANE boost online revenue by nearly 2,500 percent, and conversion to sale by almost 1,700 percent
· Targeted messaging led to 65 percent higher email open and 6.5 times higher unique click rates as compared with the non targeted control group
· With a segmented approach, L’OCCITANE can now easily accommodate secondary offers that are available in its stores as well as major product line campaigns

For more information
Please contact your IBM sales representative or IBM Business Partner. Visit us at: ibm.com/retail

To learn more about L’OCCITANE en Provence visit: http://usa.loccitane.com

Products and services used

IBM products and services that were used in this case study.

Software:
IBM Digital Analytics, IBM LIVEmail

Legal Information

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