The Top 3 Beauty Brands Are Shaping The Future Through CRM

Companies in the beauty industry are forced to compete strategically to earn normal profits in the long run because they are monopolistic competitors. 7 companies control almost every single beauty product you buy right now because they own 182 beauty companies. This article is going to look at 3 of them – Estēe Lauder, L’Oreal and Procter & Gamble. There is rising competition in the cosmetic industry, with thousands of competing brands selling similar but not identical products and low barriers to entry and exit.  With increasing homogeneity of products, these 3 beauty brands are searching for ways to differentiate themselves by turning to Customer Relationship Management (CRM). They realise that they need to find customer advocates, highlight social media and content marketing and personalise experiences. Read on to find out how they are doing just that by bringing beauty and technology together.

Estēe Lauder

Estēe Lauder recognises that 20 percent of their customers are responsible for 80 percent of their profits and have consequently invested in a new social CRM system that greatly improves their customers’ experiences and gains their loyalty. VML, a global marketing agency, helped Estēe Lauder introduce the new CRM system which is built over WeChat, one of the most powerful communication platforms in China. Estēe Lauder’s WeChat official account is connected to its CRM database so it can collect its followers’ contact information. It’s paid off – Estēe Lauder is now the top beauty brand in China. Estēe Lauder has launched campaigns on WeChat, such as the #BeautyAllNight campaign, for which it teamed up with retailer DFS and used WeChat’s facial recognition technology to create a virtual reality lipstick try-on app to promote its new cosmetics line. It partnered with YouCam Makeup to do the same in the UK. Increasing ubiquity of direct marketing channels such as these enables Estēe Lauder to create bonds with customers through direct communication.


L’Oreal similarly partnered with Cegedim for its tablet-based, cloud-functioning CRM solution MI Touch, which will allow salespeople to quickly provide product information and deliver targeted messages to potential and actual customers. Such personalised interactions are made possible through projects like The L’Oreal Insider scheme, which encourages consumers to open an online account for access to offers of free samples, reviews, expert advice and money-off vouchers for its products. L’Oreal deployed a company-wide Siebel CRM system to boost customer loyalty. L’Oréal is also leveraging Salesforce Marketing Cloud ‘Journey Builder’ to get closer to customers. It uploads data about people who trialled various makeup products in the app, then finds lookalikes who might be interested in similar products. This allows the beauty brand to have access to the relevant customer access and information needed for an effective CRM strategy. Rather than relying on guesswork, L’Oreal can now make informed decisions based on real-time information.

Procter & Gamble

Procter & Gamble and Teradata created 1, Consumer Place, a cloud environment that allows for all the consumer data that was scattered across the company to be in one location. Procter & Gamble needed to listen to and engage with their 4.8 billion consumers. Organizations that have implemented such listening and digital engagement initiatives are starting to see impressive business returns. Digital marketing optimisation has become a requirement for the global giant as it tries to deliver the right message to the right audience on the right channel. Procter & Gamble asked Cocomore to transfer a printed magazine into the digital world – and they created For Me, a platform that has now become the leading lifestyle portal for women in Germany. Procter & Gamble worked with Permission to improve the digital marketing results of its beauty CRM program, Rouge and built a customer-centric, content calendar of activity for the multinational manufacturer. With a cloud-based system, Procter & Gamble can scale up their CRM.

To create loyal customers, these beauty brands must not only deliver the best customer service and ensure customer satisfaction, but they must also keep finding new ways to differentiate themselves from competitors. However, creating a position is no longer enough. Marketing in the digital age means being data-driven and build the marketing and CRM strategies around the position you’ve chosen to occupy. We can learn a lot from these manufacturers, marketers and world leaders of beauty. Estée Lauder, L’Oreal and Procter & Gamble are teaching us that giving customers a reason to form an emotional connection with your company is the way to go. Make it your priority to improve customer relationships. These beauty brands believe that the future of beauty is now, and it starts with CRM. Do you think they’re right? We’d love to hear from you. Have a question or comment? Please share below and we’ll get right back to you.