Communication with customers through the diagnosis of skin conditions is not the only thing Chanel does to help customers understand the emphasis the company places on its skincare products.
The company has been centering efforts on customer relations management since 2006 under the slogan “Customers First,” an unusual policy for a luxury brand.
Chanel’s efforts consist of steady, conservative activities.
For instance, the company sends out postcards that entitle customers who have purchased Chanel products worth a certain amount to a complimentary gift once a year.
A customer bringing the postcard to any Chanel counter can receive a gift without buying anything. To make the best use of such visits, Chanel checks the customer’s purchase history using a customer relationship management system and recommends the most appropriate products to her.
By creating this mechanism, Chanel has seen the percentage of customers who buy a Chanel product when bringing the postcard to the counter increase to 70 per cent from 54 per cent before the CRM system was introduced.
The use of CRM enables the company to grasp the particular needs of the customer and to make appropriate product recommendations, generating sales.
Sales are on the increase while the company has reduced unnecessary services, such as the sending out of superfluous direct mail [6].