Headquartered in the suburbs of Paris, L'Oréal is the world’s largest beauty company. With a portfolio spanning luxury, professional, mass market, and active cosmetics, L'Oréal helps hundreds of millions of men and women feel good about themselves.
Even though many customers discover and interact with the brand digitally, the majority of sales for L'Oréal’s luxury products occur offline, in stores. This fragmented journey made it difficult for L'Oréal to connect its digital marketing investment to the return it was receiving through offline sales. The team in Taiwan used Google Marketing Platform and Google Cloud together to predict which customers would be most likely to purchase in stores and then reached those customers with advertising campaigns.
Chiang: L'Oréal is the world’s largest beauty company
Chiang: The Asia market has provided much of the growth for the L'Oréal global business
Chiang: To succeed in Taiwan, we need to have an advanced data strategy.
Hon: In Taiwan we typically spend our marketing budget online because we find out that a lot of customers are browsing online to find their product, doing their research, looking at the reviews, yet they make their purchase offline.
Hon: Our challenge on our team is that we need to make sure that our money is well spent and reaching the right people.
Hon: So our Google accounts team introduced us to a solution that allowed us to use our data from both of our online and offline sources.
Hon: With Google Marketing Platform and Google Cloud we're able to understand how people browse our websites to predict which customers will be most likely to purchase in the stores.
Hon: We started by bringing all of our information into Google Cloud to analyze the data. And then we found out that there is actually a 14 day time lag between when people visit our website and when they visit our stores to make a purchase. So with that insight, we built a customized machine learning model to predict which people are likely to go to the store to purchase in the next two weeks.
Hon: With Google Marketing Platform we were able to use these insights to find new audiences and reach these people with our Google marketing campaigns.
Chiang: With one of our L'Oréal brands, Lancome, we saw a 2.5 times increase in offline revenue from product sales and a 2 times improvement in return on ad spend.
Hon: This strategy has enabled us to truly use a data driven marketing approach by using predictive insights to reach the right customers.
Hon: And with this successful case in Taiwan, we are now expanding this strategy to more L'Oréal brands, with the other L'Oréal teams around the world.