Luxury & Cosmetics

How Shiseido Hong Kong leveraged the power of Machine Learning to boost e-commerce performance

Service
Customer Experience
Client
SHISEIDO
Date
April 2023
Download
Key results
12.6%
increase in add-to-cart rate
11.4%
increase in average order value
12.6%
increase in revenue
Google and fifty-five are pivotal partners to accelerate Shiseido e-Commerce performance. We are proud to be the first in the beauty industry to leverage machine learning to optimize media planning and buying.
Paul Yuen, Marketing Director, Brand Shiseido Hong Kong
Google Analytics
BigQuery
Cloud Machine Learning
Optimize 360

Challenge

Personalizing the Customer Experience with First-Party Data

Shiseido is an iconic beauty company renowned for its skin care, hair care, cosmetics and fragrances. Based in Tokyo, Japan, the group operates in approximately 120 countries and regions around the world.

Shiseido has proven itself to be a leading brand in its commitment to global digital transformation at the enterprise level. A core tenant of this transformation is e-commerce performance. It’s no secret that first-party data yields immense value for brands looking to gain increased insight into online customer behaviors, but how can brands effectively collect and harness first-party data for enhanced customer personalization? 

By leveraging fifty-five’s data expertise and machine learning capabilities, Shiseido implemented a framework for defining potential consumer sales value and predicting customer lifetime value, ultimately impacting the efficient use of marketing spend by automating the process for ongoing optimization.

Approach

Customizing Machine Learning to Work for Your Brand

fifty-five analyzed Google Analytics (GA) data to discover the behavioral pattern of users across Shiseido's website.

Cloud Machine Learning (pITV) with BigQuery allowed fifty-five to predict the lifetime value of users based on e-commerce interactions.

With Optimize 360, fifty-five ingested the results into GA for media and website activation. The team successfully automated the model to rerun and intermittently export the results to GA for further analysis.

Results

Nurturing Customers for Life with Meaningful Messaging

The results speak for themselves. fifty-five’s machine learning implementation successfully segmented low and high lifetime value customers and identified conversion rate optimization use cases.

Shiseido continued the collaboration with fifty-five as a long-term data partner with additional planning for future e-come performance strategies using Google Optimize 360.

x1.27 conversion rate
24.8% decrease in cost per conversion
x2.2 return on advertising spend
x2.7 revenue per user
12.6%
increase in add-to-cart rate
11.4%
increase in average order value
12.6%
increase in revenue