Here’s How Estee Lauder’s Digitalization Of Offline Channels Might Help The Company

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Estee Lauder

Estee Lauder is trying to boost its sales by offering digital services through offline channels as well. On October 17th, an Estee Lauder official speaking at the Luxury Interactive 2016 conference mentioned that the company has always focused on innovation and this is yet another step towards a new user experience. Focusing on the young customers’ tendencies to switch from their emails to other modes of communication such as text messages, the company is testing the concept of sending texts to consumers whose profiles are already present in the brand’s ecommerce website. The text will suggest a product that the user can buy by just replying to the text message. After the user’s identity is confirmed through their email address, the order gets placed. Through the introduction of this feature, Estee Lauder can grow its product sales to a significant extent. Below are the reasons for this:

  • The ease of buying the product simply through a text message will definitely help young people who are mostly busy to make purchases which they might have delayed or done from another company at a different time.
  • Estee Lauder already has a data base of the clients to whom it sends the text. Hence, after knowing the consumer preferences the company can send products that are specifically preferred by an individual. By offering such a customized service, the company can further gain brand loyalty.
  • Instead of going to an actual store or an ecommerce website and comparing a host of products, the consumer gets the option of directly buying Estee Lauder’s product simply through a text message. This simplicity might inspire the consumer to forego the comparison part and hence lessens the chances of them selecting a product from another company.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Estee Lauder

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