Shiseido Applies Treasure Data to make up beautiful marketing

Shiseido, a global top 10 beauty brand sought to build a powerful, one-to-one customer loyalty program in a highly competitive market by creating a one-to-one marketing program fueled by customer data.

Loyalty app bridges the online and physical worlds

Only in 2020 Shiseido added a digital component to their customer loyalty program has been at the center of their customer communication and branding strategy for 80 years. By bringing this online, hey also brought along a wealth of data. Consumers are able to browse through the app for almost anything.

Keeping up with the customers
To keep up with the dynamic nature of customers’ needs, the company deployed a Treasure Data enterprise customer data platform (CDP) to analyze historical purchase data, demographic data and recent customer behavior together, all at once.

When the Shiseido team audited the brand’s dozens of customer touch points, they discovered that Shiseido had inadvertently created many data silos: disparate sources of customer data disconnected from one another. Shiseido needed a way to bring all these data sources together and join them for a single customer ID. Their incumbent process of extraction, transformation and loading data into a data warehouse was not able to keep up with the dynamic nature of marketing data.

Centralizing their own, “first party” data was the first challenge. The second challenge was bringing in third party data from Data Management Platforms (DMPs). Only when these data sources were combined, would Shiseido be able to deliver truly personalized, one-to-one customer experiences. As the team began to deploy Treasure Data, they realized additional benefits of the Treasure Data CDP: a minimal need for engineering time and complete ownership of the entire data platform by the marketing team.

“Our new customer data platform built on Treasure Data is fundamentally changing how we communicate with our customers. Blasting emails to everyone who tried samples or bought a particular product won’t lead to customer delight. Detecting a mood swing in each customer and changing the tone of push notifications does.” Kenji Yoshimoto Chief Analyst for Direct Marketing Shiseido

20% in-store revenue increase and 38% growth in net income YOY
The goal was to understand each customer’s evolving preferences to make Shiseido’s loyalty app experience highly personalized. By accurately assessing each customer’s preference and correlating this analysis with customer behavior, they could design communications on their loyalty app that suited customers’ current needs.

Not only did Shiseido reach their goal of personalized customer experience, they also saw increased revenue and growth. Modeling customer preferences drove a 20% in-store revenue increase per loyalty program member over the course of a year and an 11% revenue increase and 38% growth in net income year-over-year.