Challenge
Sephora wanted a full shopper journey strategy to create personalized experiences for every shopper at every point of contact and ensure that their entire media plan was sustainable not only in the short term, but also in the long run.
Sephora was looking for three interlinked campaigns with different and complementary objectives:
Acquisition: Acquire new relevant customers and revitalize the existing customer base to keep the sales cycle healthy and renewed.
CRM: Provide different experiences for the various types of clients, as well as increase the Lifetime Value of existing clients mainly those in loyalty programs like the Beauty Club.
Re-engagement: Continue to connect with a shopper throughout their purchase journey so that he or she eventually returns to complete the purchase that they initiated on the Sephora site. Provide incremental sales from relevant products based on the customer’s purchasing profile.
Solution
Sephora achieved their goals by leveraging Criteo’s suite of solutions across the entire shopper journey.
The first phase consisted of optimizing and updating their retargeting campaign, including implementing Criteo’s suggestion to include a coupon in banner ads to communicate the offers: “Free Shipping on orders over $129.00” and “Up to 10 installments interest-free”.
Sephora also implemented a bid optimizer called ARO, Adaptive Revenue Optimization, which defines CPC bidding according to the ROI goal.
After realigning the retargeting campaign, Sephora started a Criteo Audience Match campaign to target its Beauty Club customers.
Customers who were impacted by the Criteo Dynamic Retargeting campaign and were part of the Beauty Club were automatically placed in this new campaign and were shown banners with special and customized offers different from those shown to retargeting campaigners who are not part of the loyalty program.
15 days after starting the Criteo Audience Match campaign, Sephora launched an acquisition campaign with Criteo Customer Acquisition to generate qualified traffic to their site.
With the ideal user profiles identified from the retargeting and Audience Match campaigns, Criteo searched for similar profiles within the Criteo Shopper Graph, with the goal of finding and connecting with users who had never purchased on the Sephora website.
Sephora created a strategy to connect with consumers across the full shopper journey:
- A coupon was included in Criteo Dynamic Retargeting campaign banners to communicate the offers: “Free Shipping from $129.00” and “installment up to 10 times without interest”.
- ARO, Adaptive Revenue Optimization, was used to set bids according to the ROI goal, i.e. the Criteo Engine began to analyze and understand the value that each bid would need to be set at to meet demand without sacrificing performance.
- Criteo Audience Match campaign was launched to focus on the Sephora loyalty program, the Beauty Club, as it is an extremely committed and loyal customer base.
- Criteo Customer Acquisition was launched to renew the customer base by acquiring new qualified users through the Criteo Shopper Graph.
“Reviewing our online strategy and having a partner that brought results across all points of contact was critical if we were to increase our brand presence and conversion. Now we have actions that impact users in a meaningful way throughout the online shopping journey.”
Results
- Sephora’s campaign saw a 725% increase in ROI
- 45% of unique users of the Criteo Audience Match campaign were engaged in the Retargeting campaign
- +2600 user sales generated from a combination of Criteo Audience Match and Criteo Dynamic Retargeting campaigns
- +1.7M unique users were reached with the Criteo Customer Acquisition campaign
- 85% of unique users from the Criteo Customer Acquisition campaign were subsequently engaged in the Retargeting campaign
