How CRM and Loyalty are Driving a Cross-Channel Marketing Makeover at Sally Beauty

HOW CRM AND LOYALTY

are Driving a Cross-channel Marketing Makeover at Sally Beauty

WHY CRM FOR SALLY BEAUTY?

COST TO ACQUIRE A NEW

CUSTOMER COST TO KEEP AN EXISTING CUSTOMER

Source: White House Office of Consumer Affairs

ATTRACTING NEW

CUSTOMERS WILL

COST YOUR COMPANY

THAN KEEPING AN

EXISTING CUSTOMER

6-7X MORE

BUSINESS CHALLENGES NO

MARKETING ROI

STAGNANT TRAFFIC GROWTH

LOYALTY PROGRAM LOST

CUSTOMERS PER MONTH

500K

THE MAKEOVER JOURNEY

OUR 5 CRM #BEAUTYSECRE TS

1.  Get comfortable having tough conversations

with leadership.

THE #BEAUTYSECRE TS

2.  Obsess over measurement.

3.  Start with the most important customer behaviors.

4.  Design your loyalty program to enable CRM.

5.  Plan for change throughout your journey.

#BEAUTYSECRE T 1 Get comfortable having tough

conversations with leadership.

#BEAUTYSECRE T 1 1.  Get comfortable having tough conversations with leadership.

Data Everywhere

Severe Resource Constraints

#BEAUTYSECRE T 1 1.  Get comfortable having tough conversations with leadership.

PAST

PRESENT

LOYALTY ANALYTICS CRM

#BEAUTYSECRE T 1 1.  Get comfortable having tough conversations with leadership.

#BEAUTYSECRE T 1 1.  Get comfortable having tough conversations with leadership.

No clear path to success

#BEAUTYSECRE T 2 Obsess over measurement.

#BEAUTYSECRE T 2 1.  Obsess over measurement.

TREATMENT

CONTROL

Antiquated media attribution

#BEAUTYSECRE T 2 1.  Obsess over measurement.

Resistance to shifting media spend

FROM TO

38 %

INCREASE IN INCREMENTAL

SALES

DIRECT MAIL

DIRECT MAIL

SPEND ALLOCATION BY MEDIA CHANNEL

#BEAUTYSECRE T 3 Start with the most important

customer behaviors.

#BEAUTYSECRE T 3 1.  Start with the most important customer behaviors.

NO CRM visibility to customer level transactions

#BEAUTYSECRE T 3 1.  Start with the most important customer behaviors.

Source: Epsilon

19 1 %

AUTOMATED EMAILS GET

HIGHER CLICK RATES THAN BROADCAST

EMAILS

Identify where to focus and invest resources

#BEAUTYSECRE T 3 1.  Start with the most important customer behaviors.

Identify where to focus and invest resources

HAIR COLOR

HAIR CARE

STYLING TOOLS

PURCHASES BY CATEGORY

#BEAUTYSECRE T 4 Design loyalty program

to enable CRM.

#BEAUTYSECRE T 4 1.  Design loyalty program to enable CRM.

Program primarily designed for discounting

#BEAUTYSECRE T 4 1.  Design loyalty program to enable CRM.

50 %

EMAIL COLLECTION

RATE

30 %

ENROLLMENT GAP

44 %

ATTRITION RATE

#BEAUTYSECRE T 5 Plan for change throughout

the journey.

#BEAUTYSECRE T 5 1.  Plan for change throughout the journey.

Team Structure

#BEAUTYSECRE T 5 1.  Plan for change throughout the journey.

Best in Class Technology

#BEAUTYSECRE T 5 1.  Plan for change throughout the journey.

Source Best in Class Partners

#BEAUTYSECRE T 5 1.  Plan for change throughout the journey.

Flexible Budgets $

1.  Get comfortable having tough conversations

with leadership.

THE #BEAUTYSECRE TS

2.  Obsess over measurement.

3.  Start with the most important customer behaviors.

4.  Design your loyalty program to enable CRM.

5.  Plan for change throughout your journey.

#BEAUTYSECRE T 6 Embrace your #BeautyFail.

#BEAUTYFAIL 1.  The initial data model infrastructure was imperfect.

You can have the Best in Class everything but if you don’t have an accurate infrastructure setup (i.e.: no unique customer IDs, no ongoing customer hygiene, disparate data sources),

it all falls apar t.

IMPACT

New Data Mart: $500,000 +

Contractor Resources: $200,000 +

3 months added to timeline +

Updated processes across all partners =

Millions of dollars lost in productivity

#BEAUTYFAIL 1.  The initial data model infrastructure was imperfect.

Fall For ward.