Douglas
A deep dive into customer data - challenging whether a global solution will be a good fit for the local market.
Data-driven Audit and Modeling of Douglas Card Loyalty Program
Douglas is a German perfumery chain specializing in cosmetics for both men and women. Brand is the leading multi-channel premium beauty supply store in Europe. The product range includes perfumes, color cosmetics, skin care, hair care, accessories and beauty treatments. Douglas has more than 1,850 stores worldwide.
In 2024, Europe's Beauty & Personal Care market is projected to generate a substantial revenue of US$144.60bn. This market is expected to experience a steady annual growth rate of 1.80% from 2024 to 2028 (CAGR 2024-2028). The Beauty & Personal Care market is thriving and one of the fastest growing consumer markets, driven in particular by the Cosmetics and Skin Care segments. The main reason for this strong growth is the generational shift with young consumers entering the market. At the same time, this change is reinforced by social media, internationality, and eCommerce, which have a lasting effect on buying behavior when it comes to beauty products. Trends from all over the world are spreading and changing the daily beauty and care routine.
Resources:
Beauty & Personal Care – Europe
As a global brand, Douglas offered its customers a central loyalty program that was the same everywhere. However, global solutions don't always work in specific markets, so the need to audit the solution offered and adjust the mechanics was communicated from headquarters to branch in Poland. Douglas Poland needed a local market expert with analytical skills. Loyalty Point’s challenge was to test whether the mechanics worked well in the country and to what extent it suited the Polish consumer.
Basic Diagnostics and Evaluation of the Attractiveness of the Global Solution
Our task was to put together whether a global solution would be attractive or not. The first step of the analysis being prepared was diagnostics of the base. Based on it, we were able to deepen our knowledge of customers and the processes operating in Douglas. On the basis of 2.7 million transaction data, we prepared customer segmentations.
Based on the analysis, it became clear that the global strategy might not work. Strengthening data acquisition processes, especially online, has proven to be a challenge. Recognizing the great potential in multichannel activities and activities aimed at a younger, insatiable group of customers, we prepared recommendations for changes and improvements to the Douglas solution together with implementation proposals.
Customer Segmentation and Insights Based on It
Based on an analysis of several million transactions made by more than 900,000 active club members over the past year, we defined 6 key segments. We differentiated them in terms of shopping habits, demographics, frequency, shopping cart and preferences. Through segmentation, we can assess who the customers are and how to differentiate them accordingly. Conducting the segmentation has allowed us to recognize the growth potential of the base, and therefore to tailor the activities carried out and their objectives to a very diverse group of customers.
Stage 3. Improve communication processes with deep segment knowledge
We analyzed nearly 3,000 communication campaigns and studied their impact on different segments. The important insight was that communication works and produces results. Therefore, we were able to immediately move on to planning more advanced solutions like CLM (Customer Lifecycle Management) communication planning. At the same time, in order to increase the mutual impact of campaign type, duration offer and delivery time on effectiveness, we proposed to increase personalization based on scoring models.
Recommendations for Join Activities to Build Customer Loyalty in the Local Market
We offered full analytical support by implementing a dashboard. In this way, we can make the Polish branch independent of analysts in Germany. By opting for local data warehousing, we can focus on further acquiring and leveraging customer knowledge in a specific market, regardless of global limitations. As a full-service provider, we also offered local support in building an omnichannel communications model. We build and implement methods to consistently manage and measure communication effectiveness across all channels.
“Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.”
Digital Director Lagardère Travel Retail
I highly recommend Loyalty Point as a strategic business partner. Whether analyzing industry dynamics or addressing complex challenges, their team consistently delivers practical and well-founded solutions.
Senior Marketing Manager
Vision Express
Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.
Digital Director
Lagardère Travel Retail
We are very pleased with the results of our cooperation. We especially appreciate the multitasking nature of the team - despite implementing several projects at the same time, complex promotional mechanisms were always ready on time.
Head of Loyalty & CRM
Decathlon
Loyalty Point consistently supports us in navigating various challenges, offering constant, professional and reliable support and tailored solutions that align perfectly with our business needs and capabilities.
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E-commerce, Marketing and Omnichannel Director
Rainbow
The starting point of the analysis was to test the wisdom of using generalized CRM segmentation for which we prepared RFM segmentation later in the project.
Initially we were supposed to be an external challenger and auditor, but we got deep enough into the data that we became an external analytical team and now we make recommendations, scoring models based on which the client conducts communications. We provide ongoing support at key moments: Analytics, Strategic support, Consulting on communications in the local market.
“Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.”
Digital Director Lagardère Travel Retail
I highly recommend Loyalty Point as a strategic business partner. Whether analyzing industry dynamics or addressing complex challenges, their team consistently delivers practical and well-founded solutions.
Senior Marketing Manager
Vision Express
Loyalty Point has a solid knowledge to successfully overcome challenges ahead and has a decent technical infrastructure to fulfill high satisfaction of our Customers. On top of this are values like trust, engagement and kindness that make achieving ambitious goals achievable.
Digital Director
Lagardère Travel Retail
We are very pleased with the results of our cooperation. We especially appreciate the multitasking nature of the team - despite implementing several projects at the same time, complex promotional mechanisms were always ready on time.
Head of Loyalty & CRM
Decathlon
Loyalty Point consistently supports us in navigating various challenges, offering constant, professional and reliable support and tailored solutions that align perfectly with our business needs and capabilities.
E-commerce, Marketing and Omnichannel Director
Rainbow
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