STORES Magazine - September 2017 - 48
Predictive analytics drove marketing success for Dermstore
by D. GAIL FLEENOR
ermstore, a dermatologist-backed
online store, depends deeply on its
relationships with customers. However,
keeping track of more than 1 million
active customers is no easy task.
Launched in 1999 by a board-certified
dermatologist, the retailer has been
a wholly owned subsidiary of Target
Corporation since 2013. The fast-growing
online retailer offers a wide range of
professional strength and salon-grade
skin care, beauty products and cosmetics
through its website as well as its spa/store
location in Hermosa Beach, Calif. For
the multi-year customer service award
winner, knowing its customers as more
than just a number is of vital importance.
"There is a large disconnect in the
industry about data-driven marketing,"
says Cathy Beaupain, Dermstore's
president. "It is important to know both
the message you want to deliver and have
guest insight. Our goal is to truly deliver
For this personalization, Dermstore
turned to Custora, a company that has
built a customer segmentation platform
designed for retail. "We wanted to
leverage predictive intelligence to drive
our marketing strategy," Beaupain says.
"The Custora platform helps us send the
right message to the right customer."
The platform allows for fast access to
data, she says. Dermstore uses Custora
to reach shoppers at critical points in the
customer lifecycle, such as when a loyal
customer visits and sales dip. Data science
rather than the usual business rules are
used to determine when to intervene
in a customer relationship, ensuring
Dermstore is speaking to its guests at the
most relevant time for them.
IMPROVING CAMPAIGN ROI
Custora's platform consists of two
parts. Its Customer Data Cloud powers
the platform by aggregating data from
transactional, engagement and web
analytic sources and creates a unique
profile for each customer.
The newest part of Custora's platform
is Segmentation Studio, a web interface
with point-and-click access for insights
needed in marketing campaigns. This
tool helps marketing teams and retailers
improve the return on investment of
email, direct mail, Facebook and display
Segmentation Studio gives Dermstore
the ability to build and look at different
customer segments, Beaupain says.
"We can go down to category level,
for example skincare purchasers. We can
look at transactions [or] which promos
STORES September 2017