Guthy-Renker, a world leader in direct response television sales, has built a successful track record selling quality health and beauty products to home shoppers since they entered the Australian market in 1991.
The company’s flagship product is undoubtedly Proactiv® the number one selling acne management treatment in the USA with over 15 million customers. This world-famous Guthy-Renker skincare brand has also been a huge success in Australia and New Zealand.
With customer knowledge and after-sale service critical to its core business, the team at Guthy-Renker are always looking for ways to interact meaningfully with their customers.
Katherine Mamontoff, e-commerce manager at Guthy-Renker, turned to the Traction Platform to track and report on its audience interactions, in order to increase sales.
“Many of our brands have valuable up-sell and cross-sell opportunities available to us if we build our understanding of our customers and interact with them on a meaningful basis. We wanted to mine our customer data to find who had bought from only one of our brands and then target them with messages and promotions about complementary products. Traction allowed us to do this easily and effectively by measuring the response to different mailings and customer groups.”
Engaging customers with the right message at the right time was key to making the most of the company’s valuable data. In this case, customers who had found the answer to acne with Proactiv were delivered a promotion for Sheer Cover, the company’s best-selling mineral make-up range.
Mamontoff and her team created three mailings to help generate sales from the customer base, designed to build on the already existing relationship. However, they needed a more comprehensive marketing platform that ensured strong deliverability and more comprehensive reporting. Using Traction, the targeted campaign delivered a return on intestment of 15 to 1, and a high conversion rate.
Guthy-Renker is now planning to send regular database broadcasts and is able to gather more meaningful data on the way their customers interact with these communications. Mamontoff is now working on some triggered communications to extend the value of Traction even further.
“We are looking at different ways to make the most of the capabilities of Traction and to tailor our messaging to customers in response to their behaviours. For example, we are looking at ‘win-back’ emails for those customers who decide to stop using a particular product, we are also looking to do surveys so we can make new recommendations based on user feedback.”
This personalisation is an important factor for Guthy-Renker’s target market.
“70% of the direct response purchases are made by women, so the key to reaching that market base is creating trust from those likely buyers. Guthy-Renker does this on TV with trusted endorsements from some of the world’s largest personalities and we must follow through with our one-to-one customer communications. Traction allows us to do this.”
Every communication with a customer is now used for effective cross-selling with targeted offerings. Furthermore, comprehensive tracking and reporting of all customer interactions allows Guthy-Renker to identify the sales impact of promotional emails and continually improve the performance of its marketing communications.