Text > Case Studies > Sephora's Implementation of LiveChat Boosts Average Order Value by 25%

Sephora's Implementation of LiveChat Boosts Average Order Value by 25%

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Technology Category
  • Sensors - Level Sensors
Applicable Industries
  • Retail
Applicable Functions
  • Procurement
  • Sales & Marketing
About The Customer
Sephora is a leading beauty retailer known for its unique, open-sell environment. The company offers an ever-increasing assortment of products from carefully curated brands, featuring emerging favorites, trusted classics, and Sephora’s own line, Sephora Collection. Sephora is based in Poland and operates in the beauty industry. The company is committed to providing a high-quality customer experience, with consultants at their physical stores providing a unique and professional service tailored to customers’ needs, including detailed interviews and product consulting.
The Challenge
Sephora, a leading beauty retailer, faced a significant challenge when they had to close their physical stores in March 2020 due to the pandemic. The company prides itself on providing a unique and professional service tailored to customers’ needs, including detailed interviews and product consulting. The closure of their stores meant they could no longer offer this personalized service. Even before the pandemic, Sephora had been considering implementing LiveChat on their website, but the lockdown in Poland, where they are based, accelerated this decision. The challenge was to replicate the in-store customer experience in a safe, online space, maintaining the same level of customer care and product knowledge.
The Solution
Sephora implemented LiveChat on their website to recreate the customer experience online. The company's consultants, who have extensive knowledge of their products, were able to stay in touch with customers and foster sales during the lockdowns. They offered services such as 'Expert Chat', providing advice from make-up and skincare experts. The consultants ensured the level of customer care was identical to that in real life, advising on products based on skin type, budget, and more. Sephora tested different forms of consultations for a few months, starting with teams of six to eight people, with one person dedicated to handling chats. Eventually, they found that one-on-one consultations worked best. The number of agents assigned to chats varied depending on the company's needs and the status of the lockdowns.
Operational Impact
  • The implementation of LiveChat has had a significant impact on Sephora's operations. The company has seen a substantial increase in sales on their website compared to before the implementation of LiveChat and online consultations. The product has proven to be crucial for upselling Sephora’s products. After building a team dedicated to handling chats, the average order value increased by 5% compared to when agents were randomly assigned to chats. Customer feedback has been very positive, with chat satisfaction at an excellent level. The company started with customer satisfaction at around 75%, and now, after putting together a dedicated group of agents, they’re at over 90%. The online consultations have helped undecided customers make purchases they were considering, which they might have postponed or not made at all without the professional advice provided through LiveChat.
Quantitative Benefit
  • 25% increase in average order value
  • 90% customer satisfaction
  • 1.7% of the company’s profits in the digital channel involved chat

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