How Amway Uses Data-Driven Automation to Drive Global

Cross-Channel RevenueEmily Rhodes

Customer Loyalty and CRM Global Marketer for Amway

Heather Hall

Managing Principal, Integrated Marketing Strategy for Acxiom

THE ARTISTRY CRM PROGRAM

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Let’s start with the results!

• 150% increase in email open rates

• 50% email open rates

• 47% email click rate

• 5% lift in sales

• 133% ROI

Do You Really Know Amway?

• # 1 direct selling company

• # 1 vitamins brand

• # 5 premium skincare brand

• 100+ countries

• 21,000 employees

• 3 million business owners

• 900+ scientists

• 1,000+ patents

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ARTISTRY’S NEW BRAND IDENTITYFORWARD BEAUTY

CHALLENGES: GEOGRAPHICAL CONSIDERATIONS

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• Distributors and customers who are

buying Artistry products for themselves

and their family

• Buying beauty products for their own

personal use

• Campaign Type: B2C

• Distributors who are using Artistry

products to build a healthy and

sustainable business

• Buying beauty products and reselling to

business prospects and customers

• Campaign Type: B2B and B2B2C

CHALLENGESTWO POPULATIONS WITH VERY UNIQUE NEEDS

PRODUCT FOCUSED POPULATION BUSINESS FOCUSED POPULATION

CHALLENGESDUAL BEAUTY PORTFOLIO

Youth XtendAdvancedCleansingCream

Youth XtendSofteningLotion

EssentialsHydratingCleanser

EssentialsHydratingToner

EssentialsEye & LipMakeupRemover

Ideal RadianceIlluminatingMoisture Lotion

Youth XtendRich CleansingFoam

EssentialsBalancingCleanser

EssentialsBalancingToner

EssentialsGentle ActionMakeupRemover

IdealRadianceIlluminatingCleanser

Youth XtendSerumConcentrate

Youth XtendUltra LiftingEye SerumConcentrate

EssentialsAlpha HydroxySerum Plus

Ideal RadianceSpot Corrector

Youth XtendUltra LiftingEssenceConcentrate

IntensiveSkincareAdvanced SkinRefinisher

Ideal RadianceIlluminatingEssence

Intensive Skincare14 Night RestoreProgram

Intensive SkincareAnti-WrinkleFirming Serum

Intensive SkincareRenewing Peell

LuXuryCrème L/X

Youth XtendProtectingLotion

Youth XtendProtectingCream

EssentialsBalancingMilky Lotion

EssentialsHydrating Lotion

Ideal RadianceIlluminatingMoisture Cream

Youth XtendMilky Emulsion

Youth XtendEnrichingEmulsion

Youth XtendUltra LiftingMilky Emulsion

EssentialsMoistureMily Lotion

EssentialsSoothingCream

Youth XtendRich MilkyEmulsion

LuXuryCrème L/X Eye

Youth XtendEnrichingCream

Youth XtendUltra LiftingCream

EssentialsBalancingLotion

Ideal RadianceIlluminatingMoisturizer

Youth XtendEnriching EyeCream

EssentialsReplenishingEye Cream

EssentialsPolishing Scrub

EssentialsCreamy Massage

EssentialsPore CleansingMasque

EssentialsMoisture IntenseMasque

EssentialsMulti-ProtectSPF 30

EssentialsAnti-Blemish

EssentialsMoisture Plus

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Develop a targeted relationship strategy by reinforcing the new Artistry brand identity & expanding knowledge of the products

Create a platform for relevant conversation that provides

knowledge and delivers a solid call to action

Maximize the ROI of the Youth XTend launch and Artistry restage investments

Empower Amway’s Business Owners to

succeed

BEAUTY CRM STRATEGYTHE GOALS

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1. Quantitative Analysis

2. Qualitative Analysis

3.

Synthesis

&

Findings

4.

Strategic

Roadmap

DEFINING THE DESTINATION AUDIT THE CURRENT

SITUATION

MAPPING THE

JOURNEY

BEAUTY CRM STRATEGYTHE APPROACH

OVERALL SCORING* JAPAN EUROPE KOREA NORTH AMERICA MALAYSIA INDIA

Technological Sophistication A A A A B B

Direct Marketing Experience A B A A B B

Overall Ranking & CRM Readiness A A A A B B

Capability Gaps A A A A B B

CURRENTLY USING BY CHANNEL

Print Mail X X X X X X

Email X X X X X X

SMS X X X X

Outbound Telemarketing X X

Inbound Telemarketing X X X

Website or Banner Retargeting X X X X X

Facebook X X X X

Twitter X X

Other Social Media (please identify) YouTube YouTube You Tube

Other tactic not identified (please identify and describe)Mobile, QR

CodesePub Campaigns& eNewsletters

AMARKET

BMARKET

• Experienced staff

• CRM technology in place

• Multi-channel capabilities

• Less experienced staff

• Disparate technology

• Single channel capabilities

B

A

B

B

B

B

B

A

A

A

A

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B

CHALLENGESCRM CAPABILITIES VARY BY REGION

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PRODUCT MOVERS

BRAND FOCUSED

2. QUALITATIVE ANALYSISCOMPETITIVE GROUPING BASED ON SOPHISTICATION

RELATIONSHIP DRIVERS

ARTISTRY LOYALISTS

ARTISTRY GROWTH

ARTISTRY PROSPECTS

Definition: top 33% of buyers based on a RFM calculationOpportunities: expand wallet shareCall to action: advocate Artistry brand + benefits

Definition: bottom 66% of buyers based on a RFM calculation

Opportunities: drive incremental Artistry salesCall to action:Cultivate Artistry loyalty & engagement

Definition: high propensity of being an Artistry Loyalists (who do not buy Artistry)

Opportunities: drive new beauty customersCall to action: product trial

KEY ARTISTRY SEGMENTSMASS BEAUTY SEGMENTS WERE DEVELOPED AMONG THE LEFT OVER POPULATION

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DEEPER SEGMENT INSIGHTS

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LAUCHCAMPAIGN1 campaign

Timing: 1 month

POST-LAUNCH CAMPAIGN1 campaign per month

Timing: 7 months

PRE-LAUNCH CAMPAIGNS2 campaigns

Timing: 2 months

*

ARTISTRY LOYALISTS – BUSINESS FOCUSED

ARTISTRY LOYALISTS – PRODUCT FOCUSED

ARTISTRY GROWTH – BUSINESS FOCUSED

ARTISTRY GROWTH – PRODUCT FOCUSED

ARTISTRY PROSPECTS – BUSINESS FOCUSED

ARTISTRY PROSPECTS – PRODUCT FOCUSED

CRM PROGRAM SCHEDULEBY ARTISTRY SEGMENT (FOR ALL COUNTRIES)

*Once a Beauty Prospect converts , they will automatically move into the Growth or Loyalists Segment for Communication

PERSONALIZED PRODUCT RECOMMENDATIONSTEP 1: ARTISTRY CROSS SELL MODELS

• To improve the accuracy of the product correlations we grouped similar people together prior to correlating their product purchases and identifying the best cross-sell opportunities

• Correlation models:

1. Artistry Loyalists Product Focused

2. Artistry Loyalists Business Focused

3. Artistry Growth Product Focused

4. Artistry Growth Business Focused

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PERSONALIZED PRODUCT RECOMMENDATIONSTEP 2: ARTISTRY DECISION ENGINE

• Assigned every Distributor a primary, secondary and third skincare product (3 products)

• Assigned every Distributor a primary, secondary and third cosmetic product (3 products)

• Assigned every Distributor a primary, secondary and new cross-sell product (6 products)

• Added business rules and automation using SAS and Siebel Campaign Management Automation

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YX WORKSHOP + BRAND TEASER CAMPAIGNBusiness FocusedPre Launch Stage

# Targeted

% Emails Delivered

% Emails Opened

% Emails Clicked

% Who Attended YX

Workshop Event

Loyalists 8,070 100% 45% 45% 20%Growth 6,781 100% 34% 30% 5%Prospect na na na na na

Grand Total 14,851 100% 40% 39% 15%

• Sent to Business Focused Artistry Loyalists and Growth Segments 2 months prior to YX launch

Email 1

• Register to YX Workshop event• Get Your Free Gift When you Attend the Workshop

CTAs:

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BRAND TEASER CAMPAIGNProduct FocusedPre Launch Stage

# Targeted

% Emails Delivered

% Emails Opened

% Emails Clicked

Loyalists 13,159 100% 28% 29%Growth 18,104 100% 23% 19%Prospect 26,026 100% 20% 16%

Grand Total 57,289 100% 23% 21%

• Sent to Product Focused Artistry Loyalists, Growth and Prospect Segments 2 months prior to YX launch

Email 2

• Drive awareness and excitement for the Artistry re-brand• Watch the Artistry re-brand Video

CTAs:

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YX WORKSHOP REMINDER SMS CAMPAIGNBusiness FocusedPre Launch Stage

616-295-7725

We noticed you haven’t signed up for the Artistry Youth Xtend Workshop in your city. Sign up and get your free Artistry gift at the event. Register here.

# Targeted

% SMS Delivered

% Who Attended the YX Workshop

EventLoyalists 4,727 95% 14%Growth 7,615 95% 18%Prospect na na na

Grand Total 12,342 95% 16%

• Sent 2 weeks later to those who did not register for the YX Workshop who have a mobile on their profile

SMS 1

• Reminder to register for the Youth Xtend Workshop for those who have not registered

• Get your free giftCTAs:

MONTH THREE DIRECT MAIL CAMPAIGN WITH YX SAMPLEProduct Focused

Post Launch Stage

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• Sent to Product Focused Artistry Prospect Segment who has not purchase YX during the campaign

Direct Mail 1

• Try the YX Serum 1-time use sample• Purchase YX Serum full size product

CTAs:

# Targeted

% YX Purchase Rate

(Test)

YX Sales Per Buyer(test)

Lift in YX Sales Per Buyer (control)

Lift in YX Sales Per Buyer (test

vs. control)

Prospects - English 8,010 0.20% $ 74.56 $ 66.28 $ 8.28

Prospects – Mandarin 13,147 0.25% $ 70.30 $ 70.70 $ (0.40)

Prospect – Malay 8,833 0.06% $ 66.28 $ 66.28 $ 0.00

Grand Total 29,990 0.18% $ 71.19 $ 69.29 $ 1.90

Example only

MONTH ONE FOLLOW-UP CAMPAIGN:Business Focused

Post Launch Stage

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# Targeted

% Emails Delivered

% Emails Opened

% Emails Clicked

Loyalists 1,122 99% 29% 12%Growth 353 99% 27% 8%Prospect 208 100% 26% 11%

Grand Total 1,683 100% 28% 11%

• Sent to Business Focused Artistry Loyalists and Growth Segments 1 month after the YX launch

Email 8

• Purchase the recommended skincare products• Product images and urls are personalized fields that link to the

recipients next-best-product values• Creates more than 200,000 unique skincare recommendations

in the post-launch stage

CTAs:

Primary Skincare XSell

Secondary Skincare category

Secondary Skincare XSell

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FINANCIAL IMPACT FOR THE MALAYSIA PILOTIncremental Income: $76,365 Marketing Expenses: $57,500 ROI:133%

$50K

$150K

$250K

$350K

$450k

$424,229 ($12,925)

Incremental Gross Sales

CRM Discount Dollars

Net Incremental Sales

Cost of Sales

Marketing Expenses (design + mailing costs)

Marketing Income (Profit)

Incremental CMAB

$411,303 ($246,782)

$164,552 ($57,500)

$76,365ROI: 133%

IMPACT ON OTHER LINES OFBUSINESSNUTRILITE

• Building a Loyalist, Growth and Affinity segmentation for Nutrilite

• Creating correlation models and decision engine for personalized Nutrilite product recommendations

• Building SAS code and campaign automation for inclusion in a lifecycle crm program

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