How Amway Uses Data-Driven
Automation to Drive Global
Cross-Channel Revenue
Emily Rhodes
Customer Loyalty and CRM Global M...
THE ARTISTRY CRM PROGRAM
2
3
Let’s start with the results!
• 150% increase in email open
rates
• 50% email open rates
• 47% email click rate
• 5% lif...
Do You Really Know Amway?
• # 1 direct selling company
• # 1 vitamins brand
• # 5 premium skincare brand
• 100+ countries
...
ARTISTRY’S NEW BRAND IDENTITY
FORWARD BEAUTY
CHALLENGES: GEOGRAPHICAL CONSIDERATIONS
7
• Distributors and customers who are
buying Artistry products for themselves
and their family
• Buying beauty products f...
CHALLENGES
DUAL BEAUTY PORTFOLIO
Youth Xtend
Advanced
Cleansing
Cream
Youth Xtend
Softening
Lotion
Essentials
Hydrating
Cl...
Develop a targeted relationship
strategy by reinforcing the new
Artistry brand identity & expanding
knowledge of the produ...
10
1. Quantitative Analysis
2. Qualitative Analysis
3.
Synthesis
&
Findings
4.
Strategic
Roadmap
DEFINING THE DESTINATION ...
OVERALL SCORING* JAPAN EUROPE KOREA NORTH AMERICA MALAYSIA INDIA
Technological Sophistication A A A A B B
Direct Marketing...
12
PRODUCT
MOVERS
BRAND
FOCUSED
2. QUALITATIVE ANALYSIS
COMPETITIVE GROUPING BASED ON SOPHISTICATION
RELATIONSHIP
DRIVERS
ARTISTRY
LOYALISTS
ARTISTRY
GROWTH
ARTISTRY
PROSPECTS
Definition: top 33% of buyers based on a RFM
calculation
Opportuniti...
DEEPER SEGMENT INSIGHTS
15
LAUCH
CAMPAIGN
1 campaign
Timing: 1 month
POST-LAUNCH CAMPAIGN
1 campaign
per month
Timing: 7 months
PRE-LAUNCH
CAMPAIG...
PERSONALIZED PRODUCT
RECOMMENDATION
STEP 1: ARTISTRY CROSS SELL MODELS
• To improve the accuracy of the
product correlatio...
PERSONALIZED PRODUCT
RECOMMENDATION
STEP 2: ARTISTRY DECISION ENGINE
• Assigned every Distributor a primary,
secondary and...
18
YX WORKSHOP + BRAND TEASER CAMPAIGN
Business Focused
Pre Launch Stage
#
Targeted
% Emails
Delivered
% Emails
Opened
% E...
19
BRAND TEASER CAMPAIGN
Product Focused
Pre Launch Stage
#
Targeted
% Emails
Delivered
% Emails
Opened
% Emails
Clicked
L...
20
YX WORKSHOP REMINDER SMS CAMPAIGN
Business Focused
Pre Launch Stage
616-295-7725
We noticed you haven’t signed up
for t...
MONTH THREE DIRECT MAIL CAMPAIGN WITH YX SAMPLE
Product Focused
Post Launch Stage
21
• Sent to Product Focused Artistry Pr...
MONTH ONE FOLLOW-UP CAMPAIGN:
Business Focused
Post Launch Stage
22
#
Targeted
% Emails
Delivered
% Emails
Opened
% Emails...
23
FINANCIAL IMPACT FOR THE MALAYSIA PILOT
Incremental Income: $76,365 Marketing Expenses: $57,500 ROI:133%
$50K
$150K
$25...
IMPACT ON OTHER LINES OF
BUSINESS
NUTRILITE
• Building a Loyalist, Growth and
Affinity segmentation for Nutrilite
• Creati...
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How Amway Uses Data-Driven Automation to Drive Global Cross-Channel Revenue

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How Amway Uses Data-Driven Automation to Drive Global Cross-Channel Revenue

  1. 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
  2. 2. THE ARTISTRY CRM PROGRAM 2
  3. 3. 3 Let’s start with the results! • 150% increase in email open rates • 50% email open rates • 47% email click rate • 5% lift in sales • 133% ROI
  4. 4. Do You Really Know Amway? • # 1 direct selling company • # 1 vitamins brand • # 5 premium skincare brand • 100+ countries • 21,000 employees • 3 million business owners • 900+ scientists • 1,000+ patents 4
  5. 5. ARTISTRY’S NEW BRAND IDENTITY FORWARD BEAUTY
  6. 6. CHALLENGES: GEOGRAPHICAL CONSIDERATIONS
  7. 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
  8. 8. CHALLENGES DUAL BEAUTY PORTFOLIO Youth Xtend Advanced Cleansing Cream Youth Xtend Softening Lotion Essentials Hydrating Cleanser Essentials Hydrating Toner Essentials Eye & Lip Makeup Remover Ideal Radiance Illuminating Moisture Lotion Youth Xtend Rich Cleansing Foam Essentials Balancing Cleanser Essentials Balancing Toner Essentials Gentle Action Makeup Remover Ideal Radiance Illuminating Cleanser Youth Xtend Serum Concentrate Youth Xtend Ultra Lifting Eye Serum Concentrate Essentials Alpha Hydroxy Serum Plus Ideal Radiance Spot Corrector Youth Xtend Ultra Lifting Essence Concentrate Intensive Skincare Advanced Skin Refinisher Ideal Radiance Illuminating Essence Intensive Skincare 14 Night Restore Program Intensive Skincare Anti-Wrinkle Firming Serum Intensive Skincare Renewing Peell LuXury Crème L/X Youth Xtend Protecting Lotion Youth Xtend Protecting Cream Essentials Balancing Milky Lotion Essentials Hydrating Lotion Ideal Radiance Illuminating Moisture Cream Youth Xtend Milky Emulsion Youth Xtend Enriching Emulsion Youth Xtend Ultra Lifting Milky Emulsion Essentials Moisture Mily Lotion Essentials Soothing Cream Youth Xtend Rich Milky Emulsion LuXury Crème L/X Eye Youth Xtend Enriching Cream Youth Xtend Ultra Lifting Cream Essentials Balancing Lotion Ideal Radiance Illuminating Moisturizer Youth Xtend Enriching Eye Cream Essentials Replenishing Eye Cream Essentials Polishing Scrub Essentials Creamy Massage Essentials Pore Cleansing Masque Essentials Moisture Intense Masque Essentials Multi-Protect SPF 30 Essentials Anti-Blemish Essentials Moisture Plus 8
  9. 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. 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. 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
  12. 12. 12 PRODUCT MOVERS BRAND FOCUSED 2. QUALITATIVE ANALYSIS COMPETITIVE GROUPING BASED ON SOPHISTICATION RELATIONSHIP DRIVERS
  13. 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
  14. 14. DEEPER SEGMENT INSIGHTS
  15. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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

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