Model behaviour: A.S. Watson credits product launch successes to predictive modelling

By Amanda Lim

- Last updated on GMT

Model behaviour: A.S. Watson credits product launch successes to predictive modelling
International health and beauty giant A.S. Watson Group says its use of predictive modelling technology has been instrumental to boosting the success of its product launches.

Coupled with the company’s extensive knowledge of the beauty industry, the customer data is able to help niched and major brands launch products into the market, said COO Malina Ngai.

She added: “Using our integrated online and offline model, this allows us to create these types of brand partnerships to specifically target and engage the right customers.”

New brands

Most recently, the Group helped to launch Jeffree Star Cosmetics in Europe through beauty chain ICI PARIS XL in The Netherlands and Belgium.

With help from predictive modelling, the company profiled consumers under 35 and targeted those that were most likely to have interest in Jeffree Star Cosmetics.

For example, members who had a high tendency to purchase new makeup brands received customised emails announcing the launch. The targeted digital campaign also allowed the brand to highlight its star products.

The personalised emails were sent out to over 300,000 consumers.

According to the Group, the blasts had a 25% open rate and 40% of those consumers visited the brand’s page on the ICI PARIS XL website. At the end of the launch period, 70% of members under 35 bought products from the brand.

Typically, Ngai said, customers who received targeted marketing messages returned to shop on average four to five times more than those who do not.

Additionally, A.S. Watson utilised social media to promote the launch. “Social media plays an increasingly important role in connecting a retail brand with its customers. At A.S. Watson, using social media is not something new – collectively we have over 58 million followers on social media,” ​Ngai said.

The brand’s founder, Jeffree Star commented: “A.S Watson has been an amazing partner, providing me with an efficient distribution platform as well as the tools to be able to target my fans and beauty lovers that like to create bright, fun and innovative beauty looks.”

Established partnerships

By employing the use of predictive modelling, A.S. Watson has been able to enjoy long-term partnerships with the biggest beauty brands such as Maybelline.

“Today’s consumers are not easy to get and hard to keep. It is important that we can provide the most relevant offers to our customers in terms of products and promotions. Hence the right targeting and predictive modelling become critical parts of the overall customer experience A.S. Watson wants to deliver,” ​said Ngai.

In 2018, Watsons Thailand entered into an exclusive year-long CRM programme with Maybelline to better target consumers with relevant deals.

A.S. Watson DataLab, the Group’s customer intelligence team, supported the campaign and helped reach out to targeted customers with personalised offers through electronic direct mail (eDM).

“All customers and especially beauty shoppers want relevant, more personally curated offers and this partnership was carefully created to ensure the right offers for right people.”​ Geoff Bellingham, general manager of L’Oréal Thailand’s consumer products division said.

The aim was to recruit new shoppers, grow each customer’s basket value, and engage customers in new product offers.

The company used a three-stage approach to accurately identify customers and provide them with the most attractive offers.

This three-stage campaign saw over 3.5m emails delivered to members, attracting over 170,000 customers to purchase the brand’s products.

As a result of the campaign, Maybelline saw double digit growth in sales and membership compared to the previous year.

“Two of the biggest challenges a brand faces are acquiring new customers and then having those customer shop again with the brand. Our Watsons Thailand CRM programme allowed us to successfully achieve both of those goals for Maybelline,”​ said Bellingham.

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