Customer-obsessed marketing

Case Study: Increasing Customers’ Loyalty With Social CRM

Xiaofeng Wang
Senior Analyst
January 24, 2017

It’s increasingly challenging for marketers to earn loyalty as empowered consumers become entitled customers with more options than ever before. My latest report, Case Study: Max Factor China Rejuvenates Customers’ Loyalty With Social CRM, tells marketers how to leverage social CRM to define an effective loyalty strategy that spans the entire customer life cycle, across channels.

The US cosmetics brand Max Factor has been growing its business steadily since it entered the Chinese market in 2009. However, Max Factor has faced growing challenges in recent years:

  • An increase in competition from incumbent and new competitors.
  • A decline in new members and average member value.
  • An incomplete understanding of customers’ purchasing and engagement behaviors.
  • A confusing loyalty program unfit for the digital age.

With the help of a digital agency specializing in social CRM solutions, Max Factor launched a new social CRM to replace its old CRM system and a new loyalty program that is clear and consistent across channels in July 2016. The company designed the program to recruit more members, stimulate larger purchases, encourage repurchase, and retain loyal customers. For example, Max Factor:

  • Used social attributes to develop loyalty with prospects. Social CRM includes consumer social behavior data that allows Max Factor to tap potential customers. The new loyalty program also rewards customers for their social engagements with the brand.
  • Bridged online and offline data via WeChat and created a tag system in social CRM. The brand is now able to access detailed customer data in the new social CRM system. It can also collect engagement data via WeChat and online and offline transactional data via QR codes.
  • Launched a member and distributor communication system based on social CRM. The brand uses the detailed real-time customer data in the social CRM system to send real-time, automated, and customized messages to customers via WeChat.

Four months later, Max Factor had achieved the following preliminary results:

  • Deeper customer insights
  • Improved employee engagement and customer experience
  • Increased new memberships and average purchase value

To learn more about how Max Factor successfully used social CRM to increase customer loyalty and sales, Forrester clients can read the full report.

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