On Tuesday, May 19, 2020 Dr. Vanessa Junc (Senior CRM Analyst) and Christian Koldehoff (Team Lead Global CRM Analytics) held a virtual guest talk in Market Research providing additional practical insights for students during this summer semester. During the presentation, the two representatives of Europe’s No.1 beauty destination introduced their loyalty card program and elaborated on the benefits of CRM data analytics. Students were encouraged to see how data gathering and data management lead to a better understanding of the customer and ultimately a better brand performance along the three already studied concepts of descriptive, exploratory, and causal research.

In a first step, Dr. Vanessa Junc and Christian Koldehoff briefly outlined descriptive research which aims at generating customer insights by using information systems. Keeping track of purchase patterns or demographics of customers is indispensable for measuring and analyzing brand and/or customer performance which helps them and their team to improve the customer experience at Douglas. Special attention was also paid to the visualization of data. According to Dr. Vanessa Junc and Christian Koldehoff, an adequate visualization is key in communicating insights of customers to different stakeholders. Understandability and easy interpretation can be for example ensured by interactive reporting tools or dashboards. In a second step, the Douglas’ representatives turned to exploratory research and the opportunities in customer segmentation. Dividing customers in different groups based on their demographics, preferences or brand purchase behaviors allows to appeal them in a more individualized way. Based on customer segmentation, simple A/B testing can be conducted in terms of causal research in a third step to measure the effectiveness of segment-specific campaigns vs. a one-to-all approach. Results revealed that segment-specific newsletters not only show a higher open rate but also increased sales. Generally speaking, CRM data analytics lead to an improved brand performance and at the same time serve as a new basis for managerial decision making.

In a later discussion, students were able to raise their questions regarding Big Data, Machine Learning and sustainability initiatives at Douglas taking advantage of the interactive character of the guest talk. The two representatives emphasized the increasing importance of these trends specifically for Douglas and the entire beauty industry in general. We thank Dr. Vanessa Junc and Christian Koldehoff for their valuable practical insights into how analytical CRM is conducted at Douglas.