Retailer data enables better sales at L’Oréal than traditional data

L’Oréal is gaining momentum in the advertising campaigns carried out thanks to Carrefour data. This data proves to be more efficient than traditional data underlines Laurent Mathias e-commerce and Data General Manager at L’Oréal. He leads the e-commerce team and the new Data team in the consumer division, in all about forty people who are very oriented and more mature in e-commerce than in data. The data teams comprise a total of 20 or 25 people, including the structures at the corporate level of L’Oréal.

L’Oréal increases to 50 advertising campaigns with Carrefour

L’Oréal will intensify its advertising campaigns by increasing to 50 campaigns in 2023 against 25 in 2022. It will have taken two years – the collaboration between Carrefour and L’Oréal began in September 2021 with a first use case whose creation was rudimentary – to build skills and set up an ad hoc organization at L’Oréal in order to master the complexity of the use of retailer data. ” We are still at the beginning of the story says the manager, who spoke on March 23 at Petit Web’s “Visit de Chantier” event.

“We manage to generate more turnover than when we use traditional data

Strong point of the approach, we manage to create incremental value. When we use Retailer data, today, we manage to generate more turnover than when we use classic data » welcomes Laurent Mathias. Other benefits of the use of Data from Carrefour, L’Oréal has better insights, and now accesses a level of data on its consumers that it did not reach before.

Concretely, I am able to know who is buying from me in terms of consumer profile. I am able to know when he buys me. I am able to know which promotional mechanism will generate a purchase or not on different types of consumers. I am able to follow them over time, to know when I put 1 € in promo or in media or in sampling or in merchandising, to measure the value that it will generate for me over a short time and a long time he lists.

Carrefour data improves L’Oréal’s performance

L’Oréal reaches its consumers by spending less

L’Oréal notes that the activation of Carrefour Data generates additional turnover, additional sell out which is generated by these activations, on the one hand. And L’Oréal on the other hand becomes much more specific about its consumers, and manages to optimize its investments. ” We manage to reach our consumers by spending less. Finally, we earn more money, in quotes, we save in the way of spending our means, media, promotion, etc. So, in the end, it’s painless as a cost continues Laurent Mathias.

We’ve been working together for two years and we’re still at the beginning of the story.”

It doesn’t happen overnight. We’ve been working together for two years and honestly, we’re still at the beginning of the story, I think. warns Laurent Mathias. ” At first, we made a fairly basic creation. We took all the Carrefour consumers and sent them this very basic creation. It worked and it still made us want to continue. We still noticed that the tool was certainly much more powerful than that » decides the person in charge.

“That’s why in year 2, we accelerated strongly. We did about 25 campaigns with Carrefour data and there, we tested different ways of using Carrefour data, either to have customer recruitment objectives, or a shopping basket development objective, even objectives to develop our brand awareness on certain types of consumers with very encouraging and significant results he enumerates.

L’Oréal accesses better consumer insights

Data from Carrefour restores sight to L’Oréal. ” We sell our products via distributors, and on the insights side, so we don’t have access to consumer data as such. And suddenly, consumer knowledge is necessarily limited by this. So that’s the first point. Carrefour, provides access to consumer data and consumer information to better understand the consumer says the manager.

We are a big media advertiser in general and we have a measurement capacity that is quite limited”

Then there is the activation dimension. We can use this data to better target our consumers, send them the right message, the right advertising, the right promo message and, as a result, personalize our promo activations. he adds. ” The third issue is an issue of measurement. We are a large media advertiser in general and we have a measurement capacity which is quite limited, I find. Carrefour data today allows us to have a measurement capacity that we have never known before with real data, consumer data. These are really the three main dimensions on which we use Carrefour data today he finishes.

His advice? You have to be bold and aim big to get the full potential of Carrefour’s retail media solution, he recommends. ” We put teams, media means and important promotions from the start otherwise it can take a long time he says. We need human budgets. There is thus an issue of handling the tool which is not easy to use. ” You have to do a lot of tests, you have to do a lot of campaigns to understand what works and what doesn’t. And for that, you need human and media resources to test he said.

Advertising campaigns are activated outside the Carrefour ecosystem

Since Carrefour is a large distributor for L’Oréal, the sales data it provides are representative and can be extrapolated to the entire distribution for the brand. As for the activation of advertising campaigns, this takes place outside the Carrefour ecosystem. This is the whole purpose of the tools offered by the distributor. That is to say that the brand can activate the data on social networks, in Open Web on all the websites on the market, in video, etc.

On the Carrefour side, we insist on the investments to be made for a brand if it wants to make the most of the data.

On the Carrefour side, we insist on the investments to be made for a brand if it wants to make the most of its data, like L’Oréal, which achieves the best in this area according to the distributor. The starting point amounts to several hundred thousand euros and rises to 5 million euros per year. Concretely, to work on a platform like that of Carrefour, you have to set up two or three Data scientists, two or three people in marketing, and have an agency that comes in support to operate this.

However, Carrefour also offers simple access to its advertising data platform for activations similar to what Cdiscount, Amazon or Facebook offer for an advertiser who wants to spend just a few hundred euros to promote their products. ” For example, we have a client who makes pralines in Nice and who spends €400 per month ” says one side Carrefour Links, the entity which monetizes the data of Carrefour.

Developing L’Oréal’s data to cross-reference it with that of retailers

In the future, could L’Oréal set up its own Data Clean Room to share its data with other companies? The approach is described as interesting by Laurent Mathias who, however, targets in the short term the massive use of retailers’ data and the development of his own data to be cross-referenced with those of retailers.

Clearly, our absolute priority is to use the ultra-massive data of our retailers”

Clearly, we have a dual strategy. On the one hand, our absolute priority is to use the ultra-massive data of our retailers answers Laurent Mathias. ” Afterwards, like any group with an international dimension, we also aim to develop our own base. We still have sites on which we sell directly he recalls. ” It’s a very small part of our business. On the other hand, we have a lot of traffic, a lot of people who come looking for information, who come to use our services, and so on. We have millions of people who connect to our sites every year he points.

And it would still be a bit of a shame not to use this data, which moreover becomes even more interesting when you potentially come across it. When we cross it with the Retailer data, it can make the thing even more powerful. We are even finer. Either way, it’s both, it’s not one or the other he concludes.

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