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Kiehl's Customer Lifecycle

Description

CHALLENGE

To design, plan and execute the brand's key moment communication plan within the framework of Kiehl's brand philosophy of promoting environmental protection, giving back to society and the marketing strategy that values the trial experience. To manage the relationship with customers from the very first contact (1st engagement).

OBJECTIVE

- Continuously promote the Kiehl's brand story and philosophy

- Successfully drive customers to repurchase

SOLUTION

1. Welcome & Engagement

MOT after joining the loyalty program is the starting point of a long-term relationship with the customer and makes the customer understand the brand/product better. Customers could receive an automated welcome EDM the next day after joining the program.

2. Sampling Program

MOT after receiving the trial pack to complete the experience, reminder and tracking process, thus enhancing the effectiveness of the experiential marketing strategy. As each customer usually receives multiple samples at the store, in order to improve the success rate of product recommendation, only the main products were introduced, therefore, the backend is set up with "product sales ranking", and the two main products with the highest ranking in the month were selected from multiple samples and introduced in detail in the EDM.

3. De-churn Program

In order to minimize churn, STORM sent monthly "greetings from friends" EDMs to customers who have not returned to the store for a certain period, and divided these customers into two groups according to their cumulative spending: the top hundreds and the rest. A "greeting letter" was sent to the top hundreds of customers and a "greeting EDM" to other customers, so that they could feel the exclusive values through different communication methods.

4. Love Token Program

Extending the brand's philosophy, the Kiehl's Love Token Program was not only redeemable for gifts, but also for charity. For every point redeemed, Kiehl's donated to the environmental charity. Customers also received quarterly "Love Token Program Account Details Notification” as MOT.

PERFORMANCE

STORM has successfully helped Kiehl's maintain loyal customer relationships by planning and executing a Moment of Truth (MOT) to drive customers back to the store and make purchases.

From 2008 to 2010, STORM successfully achieved a 7% increase in overall return rate, and 76% and 102% growth in customer unit price and return customer unit price respectively, effectively driving customers back to the store and increasing wallet share. In addition, Kiehl's brand philosophy of environmental protection and giving back to society was also successfully reflected, making customers not only become product lovers, but also give them the role of earth guardians and caring volunteers, successfully enhancing customers' pleasure, satisfaction and brand identity at the time of purchase. In a series of Moment of Truth (MOT) programs, precise strategy development and execution have enabled Kiehl's to successfully promote customer return and increase customer contribution.