Sephora customer relationships management analysis

Résumé du document

The aim of this paper is to discover how Sephora has developed its power of attraction, the loyalty of its customers and prospects by setting up sophisticated and personalized customer communication strategies. Sephora is a division of Moet Hennessy Louis Vuitton (LVMH), the world's leading luxury products group. LVMH luxury brands express the most refined qualities of Western "Art de Vivre". The mission of the group is to symbolize the elegance and creativity throughout its products and the culture it represents blending tradition with constant innovation. The philosophy of excellence and innovation at the heart of LVMH reflects directly in the spirit of Sephora. Sephora is the leading retail beauty chain in Europe. The first store was opened in France in 1969. It was a new concept of free access to the products. In 1979, ten new stores were opened in France. Few years later, the stores were bought by the British Boots. In 1994, the company chose the name Sephora for all the stores and in 1997 Sephora was acquired by LVMH. Sephora opened its first US stores in New York in 1998, in Canada in 2004 and has recently expanded in China.

Extraits

[...] All of Sephora's stores conform to the company's signature easy-to-shop concept. Belying product inventory of more than 11,000 items covering 250 brands, Sephora's retail layout is precise and orderly. Just past the store entry women and men's fragrances, arranged in alphabetical order. Top 10 fragrance best-sellers are highlighted in their own areas. Products are grouped by brand and according to categories of need, like those for dry or oily skin. Sephora lipsticks bars pop with more than 365 colors that include lavender, green, blue, gold, white, yellow and black. [...]

[...] Customer Portfolio Analysis 2. Customer Intimacy 3. Network development 4. Value proposition development 5. Manage customer lifecycle 6. Leadership IV. Conclusion: Limits of Sephora concept Sources Annex: Sephora.com Home Page The aim of this paper is to discover how Sephora has developed its power of attraction and the loyalty of its customers and prospects by setting up sophisticated and personalized customer communication strategies. Introduction: Presentation of Sephora brand 1. LVMH group Sephora is a division of Moet Hennessy Louis Vuitton (LVMH), the world's leading luxury products group. [...]

[...] Even if the Sephora's concept is based on open-sell stores, a wide range of complementary services are available in order to make the customers in a special ambiance: relaxation, beauty care, privilege The gift token: Sephora sell some gift token to the value of or The beauty care diagnosis: the customers can benefit from free personalized skin diagnoses which allow them to have beauty care advices adapted to their needs. Make-up: Sephora allows to its customers to have a flash make-up for free, Sephora makes also the make-up for special occasion such as wedding, party. Moreover, Sephora proposes some make-up learning by group of 5 people with a professional. Sephora studio: Sephora innovate with a new generation beauty space: body, face and spirit cares. Nail, eyebrow, smile and hair bars: all these beauty cares are delivered by some adviser. [...]

[...] CRM Value Chain Analysis 7. Customer Portfolio Analysis Swot Analysis Strengths First, Sephora concept is an open-sell environment where people can touch and try the products. Moreover, Sephora provides a wide range of services: beauty care diagnosis, make-up, Nail, eyebrow, smile and hair bars Then, sephora.com is the leading online retail beauty site in the US, delivering more than 20 million pages monthly with a high level of performance. Finally, Sephora has developed a strategy to retain customers and make them loyal: the Sephora loyalty card with rewards and advantages. [...]

[...] Sephora choose to reward its customers wisely and in a qualitative way. With the loyalty card holders, Sephora has developed RFM segmentation: - Recency: When was the last order? - Frequency: How many orders have they placed with Sephora? - Monetary: What is the value of their orders? This segmentation allows analyzing customers' behavior and defining market segments in order to deal with direct marketing. For example, Sephora sends regular mailing following the RFM segmentation to promote some brands Customer Intimacy Customer Database Development Sephora has launched its loyalty program in 2003 in order to intensify and optimize its customer's relationships. [...]