Alba ROMERO VILLA IMLB 2, CRM

30th March 2014

BRAND HISTORY French company first established in 1961 as a private independent company.

Three friends front the Beaux-Arts, founded a store as a showcase for their fabric design when they were working for Liberty and Sanderson. People entered then attracted by its bizarre decoration.

The store was graduated transformed into a chic bazar inspired by childhood scents and memories of journeys.

From 1963, they start focusing in developing fragrances: first candles and then with toilet water. The first line of candles was launched by Desmond Knox-Leet who was fascinated by ‘les pots-pourris’. In 1963 the first perfume was created under the name of ‘L’eau Diptyque’.

Store at 34, Boulevard Saint Germain (original location and current flagship store).

!With more than 50 years of history Diptyque preserves its brand values: luxury, discrete and elitist.

Their perfumes are inspired by nature and do not follow any particular trends but tend to make you recall your most intimate childhood, trip or personal memories.

BRAND BRIEFING

PORTFOLIO OF PRODUCTSperfumes and scents

HOME FRAGRANCES Scent combinations, scented ovals, photophores and accessories. The brand is notably recognized for its candles.

PERSONAL FRAGRANCES Colognes, perfumes and eau de toilette; roll-ons, body-care products and travel sprays.

FUTURE? beauty and make-up, sunburn prevention & sun tan preparations, nail polish, shampoo, shaving preparations, deodorant, bath salts, etc

DISTRIBUTION

FINANCIAL DATARetail stores

Department stores

Specialized stores

Specialized e-commerce sites

e-shop

The company is continuously growing and is expanding since 2010 (from a total income of 13.3M in 2010 to 23.9 Millions in 2012).

The company tripled its net operating income from 2010 to 2012 (1.1M in 2010 compared to the 3.3M in 2012).

! In the balance we can notice that the company’s expansion is financed through debt,

(especially with a 6.2 Millions loans in 2012).

COMPETITORS

SWOT ANALYSIS

S WO T

quality of product / brand history – heritage / product portfolio / R&D

investment

Essentially local presence (French, Parisian market) / many similar

competitors locally and internationally / the company still hasn’t penetrated into the emerging economies & key global

players

International and global expansion in progress / consumers tend to be loyal to the brand /customers seeking for authenticity and ‘savoir faire’/ even

there is a patent lack of advertising the brand awareness raises thanks to word to mouth / the customers as promoters.

Recent economic crisis had decreased spending on “discretionary” items / lack

of brand awareness abroad / lack of promotion/advertising

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IDENTIFY BUSINESS ISSUES • HIGH DEPENDANCE IN WHOLESALE:

Problem to build up a customers database, brand awareness and in store service.

• SIMILAR competitors

• Incoherence among retail stores, specially in the FLAGSHIP STORE.

• Need to BOOST SALES EXPERIENCE. Some recommendations to do so: sales associates image, implement guidelines for customer services, change uniforms, coherence among retail stores (architecture and decoration), develop a subtle corporative scent.

CRM STRATEGY: OVERALLOBJECTIVES

ACTIONS RESULTS & PERFORMANCE

Customer Intelligence Statistics, forecasting, etc.

Establish guidelines for service in store. (Sheet, uniform, architecture, etc.) !

Mystery shopping, loyalty rates

Segmented marketing actions (catalogues, direct marketing, etc.)

Sales increase within the segment

Sampling repeated customers buying, specially the samples

Catalogues (two types) Sales increase

Events (openings and capsule collections) Sales

Digital (communication, social media, interaction, etc.)

Measuring conversion rate

Build loyalty &sell more!

Source: CRM courses (2014)

Conquer new clients (and gain market share)

Provide added value, luxury justification. Improve performance while reducing costs Ensure client retention rates and reduce churn risk (similar competitors)

Continue growing: new retail stores openings and expand to new markets (events).

ACTION I: CHEAT SHEET

CUSTOMER INTELLIGENCE• Obtain and integrate customer data. Appart from CRM a good client database is key to

forecast future sales and be aware of consumers behavior. • When buying in stores and corners the sales people hasn’t offered at any time personal data. • Build a system that allows differentiation in profiles and segmentation according to loyalty,

level of spending and purchase behavior. • Establish desired rentability rates.

GUI

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The customer is a PERSON: discover him truly to build up a relationship: needs, lifestyle,

taste, aspirations and desires. Get your customer DATA and explain him/her the main uses of this information (sales follow

up, mailings with new arrivals, promotions, invitations to events in store, satisfaction

surveys). Always check that the data is UPDATED in future purchases. THANK HIM/HER FOR HIS PURCHASE and make sure he is SATISFIED with the service

delivered and the product (surveys and follow-up, specially when client complaints).

Provide good AFTER SALES SERVICE. 7. INFORM your customer about the NEW PRODUCTS because they novelties and better if

it’s with catalogues or a season magazine. 8. DELIGHT AND SURPRISE him/her. For example: write him or send an ams with a special

promotion or detail for his/her birthday or for Christmas. 9. Make him COME BACK before 6 months.

Source: CRM courses (2014)

CUSTOMER SEGMENTATION

TOP

HIGH

MEDIUM

SECONDARY LOW LOW SECONDARY

Source: CRM courses (2014)

A good segmentation among existing customers helps to reduce costs and increase efficiency by doing specific marketing and commercial actions for difference customers segments.

ACTION II: CONTACT STRATEGY

ACTION OBJECTIVE KPI TARGET CHANNEL DATE

Invest in segmented marketing,

improve store service and

conquer new clients and

increase brand loyalty

Redemption on target over the

yearexisting clients and new clients

in store, sales team, social

media, promotion

All the year

Personalized programs client retention

Redemption on target over 3

monthsVIP clients / loyal clients

personalized e-mailing and/or

direct mailevery 3 months

Invest in retail coherence

reduce churn risk

redemption on target over 2

monthsall clients e-mailing all year long

Continue collaborations

(e.g. John Galliano etc...), special editions

push sales sales increase

new customers and loyal

customers looking for new

products

advertising september and january

ACTION II: CONTACT STRATEGYWHAT OBJECTIVE WHO WHEN

Store service: offer tea, change uniforms

and introduce a cooperative scent

make the top clients feel comfortable and relaxed, increase his/her stay in the store

Sales Associate In the course of the sale process

Personalized Service: getting to know the clients:

lifestyle, taste and personality

understand the client needs Sales Associate Beginning of every

sale

Include samples in all the buys

Present products to customers and give them a reason for

coming backSales associate End of every sale

Data controlcheck if information

have been well collected

CRM desk Within 72 hours

include the catalogue following the first

buying experience

follow-up and presentation of the

company's productsCRM desk Within a month

After sale servicesmanage client

expectations and loyalty

After sale service Answer and solution within 24 to 48 hours

ACTION III: SOME DETAILS

• IN STORE

!!!!!!!

• BY MAIL

!

• PERSONALIZED samplings (example: MAC)

Always when first buying.

When purchase is more than a

stablished amount and when asked.

When buying online.

Only to Top&High clients. A seasonal catalogue with samples that includes capsule collections and permanent product line.

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ACTION VI: DIGITAL CRMOBJECTIVE: Enhance the company awareness in social media, internet and promote e-shooing.

!

CHALLENGES in Digital

!

ACTIONS to be implemented:

• Interact with audience using social media tools already in place (Instagram / Facebook / twitter)

• Use of the data collected through these medias in order to personalized recommendations

• Setting up a mailing strategy based on the data collected : birthday gifts ; Mother days ; favorite fragrance - candles or product ; special offer when the target did not buy anything in store for a certain period of time ;

• Satisfaction surveys when buying online

The nature of their products: it’s really hard to catch new customers online since they can not experience the product.

As any luxury brand: Offer allure and exclusivity, maintain integrity of the brand image and aesthetic and increase brand recognition

SOURCES• http://www.diptyqueparis.fr/

• http://www.diptyqueparis.com/our-story

• http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=27674037

• One source report: Financial Data.

• Xavier de Roquemaurel CRM course pack.

• Information obtained by visiting the flagship store and Galleries Lafayette corner.