How L’Oréal Wins Big Online, One Shopper at A Time

L’Oréal Luxe Division brand, SHU UEMURA, specializes in makeup and cleansing oils made famous by the legendary Japanese makeup artist himself. See how they used personalized CX and AI automation to boost revenue 149%

problem

Lots of products to tag, lots of unique customers to engage

solution

Automate tagging, engage customers with personalized recommendations, make more cross-sells

Results

140%

Conversion Rate increase

109%

Average Order Value increase

149%

Revenue increase

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“Digital technology has changed the way we market; An important goal is having the ability to build rich, personalized consumer relationships and create content that engages consumers and makes them happy to share it.”

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Rosetta.ai case study

shu uemura

The L’Oréal Luxe Division has recently added personalized marketing on many of its websites, including Shu Uemura. L’Oréal Luxe is the world’s largest beauty group, providing consumers with the best products — and, in their own words, a unique experience.

So to make every experience unique, the idea is to build personalized consumer relationships. To make this happen, the Shu Uemura site needed a complete back-to-front solution that could organize their large cosmetics product line and relate to customers individually.
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The Problem

Lots of products to tag, lots of unique customers to engage

The product line runs deep at L’Oréal. Finding a way to efficiently identify product attributes was a big challenge for Shu Uemura. But it had to be done if L’Oréal wanted to achieve their main goal of recommending products to individual customers.
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In the past, L’Oréal’s Data Team had to identify VIP customers one by one from their CRM database. Then they had to customize different EDM marketing campaigns. The process took a lot of time and money.

Realizing this was not a sustainable SOP, the Data Team sought out Rosetta.ai and applied machine learning algorithms to automate product tagging, identify customer preferences, and provide personalized recommendations.
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The Solution

Automate tagging, engage customers with personalized recommendations, make more cross-sells

Automated tagging

The Rosetta.ai solution automatically creates product tags for individual preference profiles, a rich source of data for you to create truly personalized recommendations. This solution saves time and money because the AI can look at the product catalog like a human Data Analyst and create tags.

The automation relies on computer vision trained by Rosetta.ai beauty and fashion industry experts, ensuring the tags are written to industry standards. Product category tags can be set (#brands #feature #material #skin #position, for example), and tags can be written into product descriptions. Beyond that, the AI takes over, identifying tags from catalog images:
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Computer vision reads the image of the bottle and the algorithm writes the product tags.

The additional product tagging detail makes shopper preference profiles more insightful, which is the key to building better customer relationships. What’s more, the extra detail in the data provides extra insight into why certain products are trending. This helps with future product development.

Personalized recommendation boxes

The Rosetta.ai service uses deep learning technology to analyze consumer preferences and onsite behavior. As shoppers visit, the AI analyzes the context of the experience and delivers personalized recommendations.

The visitor may be on the landing page, category page, product page or cart page, but the algorithm always ensures that just the right products are presented in recommendation boxes. Shu Uemura uses “Recommended just for you” on their product page.
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An auto-generated preference profile provides the “Recommended just for you” box on the Shu Uemura product page.

Preference profiles include the favorite colors, preferred makeup attributes, and past purchase history. This data is used to select the best products for that individual customer at that particular time.

Personalized pop-ups

Rosetta.ai can create personalized pop-ups that offer one-to-one recommendations or discounts. These pop-ups engage customers as individuals on the Shu Uemura site and convert much more than generic pop-up offers, especially with hesitant shoppers.
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The personalized discount pop-up presents special offers on products that match the shopper’s preference profile.

Hesitant shoppers make up 10%~20% of all website visitors, but with personalized pop-ups, Shu Uemura has been able to encourage them to buy more and conversion rates are up 140%.

More cross-sells

The extra tagging work on the backend enriches individual preference profiles, making recommendations more accurate. Whether it's a recommendation box or a pop-up, the right offer at the right time makes each experience unique and drives more cross-sells. Customers click on more products, stay longer and buy more. For Shu Uemura, the average order value went up 109%.
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Results

140%

Conversion Rate increase

109%

Average Order Value increase

149%

Revenue increase

L’Oréal’s goals for adding personalization to their online marketing included improving CVR, AOV and revenue, as well as saving time and lowering costs. In less than a year they were able to achieve all those goals with the Rosetta.ai personalized marketing solution.

The large gains speak for themselves, with increases of 140% for conversion rate, 109% for average order value and 149% for revenue.

Business growth for Rosetta.ai clients like L’Oréal and Shu Uemura is steady and strong because the solution offers real one-to-one personalization, not segmentation.

Customers are emotionally engaged by the results and the AI-driven automation frees up human resources behind the scenes to focus on other tasks.

Enabling merchants to understand the language of fashion.

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