Amway uses data-driven automation and customer relationship management (CRM) programs to drive global cross-channel revenue for its Artistry skincare brand. A CRM program for Artistry increased key metrics like email open and click rates and lifted sales. The program segmented customers into Loyalists, Growth, and Prospects and targeted each segment with personalized, multi-channel campaigns at different stages. The program resulted in a 133% return on investment from its pilot in Malaysia and could be expanded to other Amway brands like Nutrilite.
How Amway Uses Data-Driven Automation to Drive Global Cross-Channel Revenue
1. How Amway Uses Data-Driven
Automation to Drive Global
Cross-Channel Revenue
Emily Rhodes
Customer Loyalty and CRM Global Marketer for Amway
Heather Hall
Managing Principal, Integrated Marketing Strategy for Acxiom
7. 7
• Distributors and customers who are
buying Artistry products for themselves
and their family
• Buying beauty products for their own
personal use
• Campaign Type: B2C
• Distributors who are using Artistry
products to build a healthy and
sustainable business
• Buying beauty products and reselling to
business prospects and customers
• Campaign Type: B2B and B2B2C
CHALLENGES
TWO POPULATIONS WITH VERY UNIQUE NEEDS
PRODUCT FOCUSED POPULATION BUSINESS FOCUSED POPULATION
9. Develop a targeted relationship
strategy by reinforcing the new
Artistry brand identity & expanding
knowledge of the products
Create a platform for relevant
conversation that provides
knowledge and delivers a solid
call to action
Maximize the ROI of the
Youth XTend launch and
Artistry restage investments
Empower Amway’s
Business Owners to
succeed
BEAUTY CRM STRATEGY
THE GOALS
9
10. 10
1. Quantitative Analysis
2. Qualitative Analysis
3.
Synthesis
&
Findings
4.
Strategic
Roadmap
DEFINING THE DESTINATION AUDIT THE
CURRENT
SITUATION
MAPPING
THE
JOURNEY
BEAUTY CRM STRATEGY
THE APPROACH
11. OVERALL SCORING* JAPAN EUROPE KOREA NORTH AMERICA MALAYSIA INDIA
Technological Sophistication A A A A B B
Direct Marketing Experience A B A A B B
Overall Ranking & CRM Readiness A A A A B B
Capability Gaps A A A A B B
CURRENTLY USING BY CHANNEL
Print Mail X X X X X X
Email X X X X X X
SMS X X X X
Outbound Telemarketing X X
Inbound Telemarketing X X X
Website or Banner Retargeting X X X X X
Facebook X X X X
Twitter X X
Other Social Media (please identify) YouTube YouTube You Tube
Other tactic not identified (please identify and describe)
Mobile, QR
Codes
ePub Campaigns
& eNewsletters
AMARKET
BMARKET
• Experienced staff
• CRM technology in place
• Multi-channel capabilities
• Less experienced staff
• Disparate technology
• Single channel capabilities
B
A
B
B
B
B
B
A
A
A
A
A
A
A
A
A
A
B
CHALLENGES
CRM CAPABILITIES VARY BY REGION
11
13. ARTISTRY
LOYALISTS
ARTISTRY
GROWTH
ARTISTRY
PROSPECTS
Definition: top 33% of buyers based on a RFM
calculation
Opportunities: expand wallet share
Call to action: advocate Artistry brand + benefits
Definition: bottom 66% of buyers based on a RFM
calculation
Opportunities: drive incremental Artistry sales
Call to action:Cultivate Artistry loyalty & engagement
Definition: high propensity of being an Artistry
Loyalists (who do not buy Artistry)
Opportunities: drive new beauty customers
Call to action: product trial
KEY ARTISTRY SEGMENTS
MASS BEAUTY SEGMENTS WERE DEVELOPED AMONG THE LEFT OVER POPULATION
13
15. 15
LAUCH
CAMPAIGN
1 campaign
Timing: 1 month
POST-LAUNCH CAMPAIGN
1 campaign
per month
Timing: 7 months
PRE-LAUNCH
CAMPAIGNS
2 campaigns
Timing: 2 months
*
ARTISTRY LOYALISTS – BUSINESS FOCUSED
ARTISTRY LOYALISTS – PRODUCT FOCUSED
ARTISTRY GROWTH – BUSINESS FOCUSED
ARTISTRY GROWTH – PRODUCT FOCUSED
ARTISTRY PROSPECTS – BUSINESS FOCUSED
ARTISTRY PROSPECTS – PRODUCT FOCUSED
CRM PROGRAM SCHEDULE
BY ARTISTRY SEGMENT (FOR ALL COUNTRIES)
*Once a Beauty Prospect converts , they will automatically move into the Growth or Loyalists Segment for Communication
16. PERSONALIZED PRODUCT
RECOMMENDATION
STEP 1: ARTISTRY CROSS SELL MODELS
• To improve the accuracy of the
product correlations we grouped
similar people together prior to
correlating their product
purchases and identifying the
best cross-sell opportunities
• Correlation models:
1. Artistry Loyalists Product Focused
2. Artistry Loyalists Business Focused
3. Artistry Growth Product Focused
4. Artistry Growth Business Focused
16
17. PERSONALIZED PRODUCT
RECOMMENDATION
STEP 2: ARTISTRY DECISION ENGINE
• Assigned every Distributor a primary,
secondary and third skincare product
(3 products)
• Assigned every Distributor a primary,
secondary and third cosmetic product
(3 products)
• Assigned every Distributor a primary,
secondary and new cross-sell product
(6 products)
• Added business rules and automation
using SAS and Siebel Campaign
Management Automation
17
18. 18
YX WORKSHOP + BRAND TEASER CAMPAIGN
Business Focused
Pre Launch Stage
#
Targeted
% Emails
Delivered
% Emails
Opened
% Emails
Clicked
% Who
Attended YX
Workshop
Event
Loyalists 8,070 100% 45% 45% 20%
Growth 6,781 100% 34% 30% 5%
Prospect na na na na na
Grand Total 14,851 100% 40% 39% 15%
• Sent to Business Focused Artistry Loyalists and Growth Segments 2
months prior to YX launch
Email 1
• Register to YX Workshop event
• Get Your Free Gift When you Attend the Workshop
CTAs:
19. 19
BRAND TEASER CAMPAIGN
Product Focused
Pre Launch Stage
#
Targeted
% Emails
Delivered
% Emails
Opened
% Emails
Clicked
Loyalists 13,159 100% 28% 29%
Growth 18,104 100% 23% 19%
Prospect 26,026 100% 20% 16%
Grand Total 57,289 100% 23% 21%
• Sent to Product Focused Artistry Loyalists, Growth and Prospect
Segments 2 months prior to YX launch
Email 2
• Drive awareness and excitement for the Artistry re-brand
• Watch the Artistry re-brand Video
CTAs:
20. 20
YX WORKSHOP REMINDER SMS CAMPAIGN
Business Focused
Pre Launch Stage
616-295-7725
We noticed you haven’t signed up
for the Artistry Youth Xtend
Workshop in your city. Sign up and
get your free Artistry gift at the
event. Register here.
#
Targeted
% SMS
Delivered
% Who Attended
the YX Workshop
Event
Loyalists 4,727 95% 14%
Growth 7,615 95% 18%
Prospect na na na
Grand Total 12,342 95% 16%
• Sent 2 weeks later to those who did not register for the YX
Workshop who have a mobile on their profile
SMS 1
• Reminder to register for the Youth Xtend Workshop for those who
have not registered
• Get your free gift
CTAs:
21. MONTH THREE DIRECT MAIL CAMPAIGN WITH YX SAMPLE
Product Focused
Post Launch Stage
21
• Sent to Product Focused Artistry Prospect Segment who has not
purchase YX during the campaign
Direct Mail 1
• Try the YX Serum 1-time use sample
• Purchase YX Serum full size product
CTAs:
#
Targeted
% YX Purchase Rate
(Test)
YX Sales Per
Buyer
(test)
Lift in YX Sales
Per Buyer
(control)
Lift in YX Sales
Per Buyer (test
vs. control)
Prospects - English 8,010 0.20% $ 74.56 $ 66.28 $ 8.28
Prospects – Mandarin 13,147 0.25% $ 70.30 $ 70.70 $ (0.40)
Prospect – Malay 8,833 0.06% $ 66.28 $ 66.28 $ 0.00
Grand Total 29,990 0.18% $ 71.19 $ 69.29 $ 1.90
Example only
22. MONTH ONE FOLLOW-UP CAMPAIGN:
Business Focused
Post Launch Stage
22
#
Targeted
% Emails
Delivered
% Emails
Opened
% Emails
Clicked
Loyalists 1,122 99% 29% 12%
Growth 353 99% 27% 8%
Prospect 208 100% 26% 11%
Grand Total 1,683 100% 28% 11%
• Sent to Business Focused Artistry Loyalists and Growth Segments 1
month after the YX launch
Email 8
• Purchase the recommended skincare products
• Product images and urls are personalized fields that link to the
recipients next-best-product values
• Creates more than 200,000 unique skincare recommendations
in the post-launch stage
CTAs:
Primary
Skincare XSell
Secondary
Skincare
category
Secondary
Skincare XSell
23. 23
FINANCIAL IMPACT FOR THE MALAYSIA PILOT
Incremental Income: $76,365 Marketing Expenses: $57,500 ROI:133%
$50K
$150K
$250K
$350K
$450k
$424,229 ($12,925)
Incremental
Gross
Sales
CRM
Discount
Dollars
Net
Incremental
Sales
Cost of
Sales
Marketing
Expenses
(design +
mailing costs)
Marketing
Income
(Profit)
Incremental
CMAB
$411,303 ($246,782)
$164,552 ($57,500)
$76,365
ROI: 133%
24. IMPACT ON OTHER LINES OF
BUSINESS
NUTRILITE
• Building a Loyalist, Growth and
Affinity segmentation for Nutrilite
• Creating correlation models and
decision engine for personalized
Nutrilite product recommendations
• Building SAS code and campaign
automation for inclusion in a
lifecycle crm program
24