What do Barbie, lipstick and beer have in common?

The makers of Barbie, a global top 10 beauty brand and one of the largest breweries in the world use Treasure Data as their Customer Data Platform.

With brand values in the billions, it doesn’t matter that their target customers are different ages and genders. They all want the same thing: Customer loyalty in a highly competitive market.

“Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.” – Steve Jobs

Shiseido, a global top 10 beauty brand, is close to celebrating its 150th anniversary. How do they keep themselves fresh, young and relevant for the next 100 years?

By creating a one-to-one marketing program fueled by Customer Data.

Loyalty App Bridges the Online and Physical Worlds

Launched in 1937, Shiseido’s customer loyalty program has been at the center of their customer communication and branding strategy for 80 years. But it was only in 2012 that they added a digital component. By bringing their loyalty program online, they also brought along a wealth of data.

Inside the app, consumers can browse catalogs, order products, search for store locations and receive expert advice and product recommendations.

Keeping Up With the Customers

Previously, customer communication via the app was based on assumptions about customer behavior. But customer preferences and behavior constantly change.

To keep up with the dynamic nature of customers’ needs, the company used Treasure Data’s Customer Data Platform to analyze historical purchase data, demographic data and recent customer behavior together, all at once.

When the team audited their dozens of customer touchpoints, they realized that Shiseido had inadvertently created many data silos: disparate sources of customer data disconnected from one another. They needed a way to bring all these data sources together and join them against the common customer ID. Their incumbent ETL process into a data warehouse was not able to keep up with the dynamic nature of marketing data.

traffic increase

If centralizing their own, “first party” data was the first challenge, the second challenge was bringing in 3rd party data. Only when Shiseido’s 1st party data and the 3rd party available through Data Management Platforms (DMPs) were combined, would they be able to deliver truly personalized, one-to-one customer experiences.

As the team began to deploy Treasure Data, they realized another benefit of the Customer Data Platform: a minimal need for engineering time and complete ownership of the entire data platform by the marketing team.

shiseido case study diagram

20% In-Store Revenue Increase and 38% Growth in Net Income YOY

The goal was to understand each customer’s evolving preferences to make their 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.

In addition, the team was able to create models for customer segments based on four types of data:

Not only did Shiseido reach their goal of personalized customer experience, they also saw increasing revenue and growth.

Modeling customer preferences drove 20% in-store revenue increase per loyalty program member, and the company overall saw 11% revenue increase and 38% growth in net income YOY .

“The 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