Q&A: Alessio Rossi, VP, Interactive and E-Business Marketing, Lancôme

Last week Lancôme launched L’Oreal’s first-ever loyalty program, Lancôme Elite Rewards−which is one of the first loyalty programs unveiled by a major cosmetics brand.

This is not a traditional loyalty program. Users earn points that they can redeem for Lancôme products and beauty experiences not just by buying Lancôme products, but also by posting about them to their social-media networks and following Lancôme USA on Facebook, Instagram and Twitter. For instance, users will receive 10 points for every $1 they spend on Lancôme products at one of 2,300 participating retail locations, and they also receive up to 50 points for connecting with the brand’s social channels and 25 points each time a favorite find is shared on one of those channels.

Lancôme is working with Olson 1to1, the loyalty/CRM division of Olson, on the program.

Alessio Rossi, VP, Interactive and E-Business Marketing, Lancôme offered some more insight into the recently launched program during a Q&A with Loyalty360.

What factors prompted Lancôme to launch L’Oreal’s first-ever loyalty program and what are the company goals for it?

We saw an opportunity to engage with our customers, and help our customers engage with each other, in a deeper way that is true to our brand. While we can’t discuss specific metrics, the program incentivizes not just purchases but also social engagement, which helps turn our best customers into advocates while also helping us to get to know them better.

When will it launch and how will it be unique from other loyalty offerings in the marketplace?

The program launched this month. We haven’t seen any other comparable loyalty program for premium cosmetics brands in the U.S. market so far. We believe that not owning their points of distribution may have been the major obstacle.

Why is it important for a cosmetics marketer to become involved in loyalty marketing?

The technology exists today to engage our customers like never before. It’s important for all brands, not just cosmetics brands, to do everything they can to take advantage of this.

Why is social media a key component of this program?

Our customers talk about our products on social media all the time, and that is the greatest marketing we can ask for. By incentivizing that sort of conversation, we can both encourage and amplify it.

Is it a simple program for customers to access and use?

It is in a fact a very intuitive program. Customers can sign up at Lancome-USA.com and create a profile with a few keystrokes, immediately earning 50 points. Then they earn 10 points for every 1$ spent in stores or online. Additionally, our fans get 50 points for connecting their Facebook, Instagram, Twitter and Foursquare profiles with us and 25 points each time they point out a favorite find on those channels. These points are redeemable for products and exclusive experiences.

Did the company conduct any focus groups or solicit customer feedback in any way when deciding how to set up the loyalty program? If so, in what ways?

The program has been tested multiple times during the modeling phase.

How do you hope/expect the program will impact customer engagement, customer loyalty, customer lifetime value, and your bottom line?

We have already noticed an incredible traction in terms of engagement, repeat rate and average spend. We expect to see more in the next months.

Do you benchmark against competitors in the cosmetics industry?

Of course we do, but we also look outside the beauty industry.

As a marketer, what things/challenges keep you up at night?

Our kids keep me more awake that the marketing challenges. I guess it is this never-ending innovation process constantly disrupting the space that keeps us alive. We actually like it and believe it is a luxury to have it. We see opportunities everywhere.

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