Merle Norman is a family owned and operated cosmetic producer founded in 1931 by Merle Nethercutt Norman. Since then, Merle Norman’s vision has expanded to over 1,000 retail locations throughout the US and Canada. Each independently owned location gives their customers a unique and leisurely experience inspiring them to be the best version of themselves, with exceptional products ranging from skincare, to cosmetics along with indulgent Studio offerings. 

As the outbreak of COVID-19 began to sweep the country, Merle Norman and their executive and family member, Travis Richards, were determined to adjust their current eCommerce strategy to fit an imminent need, hand sanitizer. In order to get this solution off the ground, there were a few barriers that needed to be overcome, including; the solution itself, a revised technology landscape to fit their new offering, product packaging, branding and finally FDA approval. In addition, it was critical that Merle Norman consider the well-being of their loyal employees throughout the entirety of this process. This included following CDC guidelines and taking all necessary precautions outlined by the US Government. It’s important to note, this wasn’t Merle Norman’s first time assisting in a national crisis. In WWII, the brand manufactured machine gun oil and camouflage sticks for the US Government – being called to duty and helping is in their heritage.

After careful consideration, Merle Norman’s team of chemists determined an ideal solution to fit the needs and requirements of their clientele. The final product, which is distributed in a sprayable container is a 75% isopropyl alcohol and 80% ethanol alcohol-based fragrance-free lightweight liquid and is approved by the World Health Organization. The product is available in a convenient 6 oz and 3.4 oz size. 

As long-term partners of BORN Group and Salesforce Commerce Cloud (SFCC), the brand worked closely with the agency to revise their digital landscape to meet this new initiative, under a tight timeline. It was critical that their digital solution not only be scalable to accommodate the amount of intended traffic but flexible enough to make minor adjustments to their product inventory and shipping restrictions, all on the fly. ‘[We] were very impressed with BORN’s integration and our ability to work together seamlessly, the results truly speak for themselves,’ adds Jose Escobar, eCommerce Lead at Merle Norman. The teams worked closely and were ultimately able to create a stack that fit their business needs. 

The ‘Helping Hands’ initiative was launched by Merle Norman just 3 weeks after inception. With minimum branding and PR associated with the rollout, Merle Norman hosted a banner across their homepage along with a post to social media. Almost immediately, the brand saw a surge in orders of their new product attracting first-time visitors and loyal fans alike. With this success the brand had to create a limitation of purchases per one single user to prevent hoarding and overselling of the merchandise. All in all, the launch of hand sanitizer for the Merle Norman brand was not only beneficial to their business but to the thousands of franchisees who have been forced to close their doors during this time. With the production and distribution of hand sanitizer, Merle Norman was able to not only share their protective solution with individuals across the country during this high-risk time, but simultaneously protect their family-owned business and the thousands of franchisees and employees who rely on their business. 

Since the launch of Merle Norman’s hand sanitizer, the product has found a new niche in commercial accounts. Merle Norman’s product provides clients with a consistent superior formula in branded packaging all manufactured locally in Merle Normans location in California. Richards adds, ‘These past few weeks have been crazy for us all, the reception of the hand sanitizer, especially in the sprayable format has been epic. Doctors especially are fawning over this product because of its performance and other applications. The spray is more potent than all the others and doesn’t leave snail trails all over everything and it’s used on surfaces where regular mass gels would never be used- it’s exciting, I’ll never go back to a gel personally!’

Following the COVID-19 pandemic, our world has been faced with a revised reality that will affect each of us moving forward. B2C and B2B retailers alike, have seen changes in every aspect of how their businesses operate and in turn, have altered their digital presence to keep up with demand. This time of distress and disruption is not the time to halt your digital presence or growth, but instead, work to ensure that your solution is flexible and robust enough to withstand current circumstances and any future changes. 

How has COVID-19 impacted the way we do business?

‘COVID-19 has become both an agent of change and an accelerator for pre-existing trends,’ says Keith Pires, SVP, Enterprise at BORN. 

• The COVID pandemic has forced the closure of most brick-and-mortar entities disrupting the way traditional retailers conduct business.
• Businesses have to work even harder to stave off competition and fight the ease of buying off Amazon.com, deemed an essential business and growing stronger at this time. 
• Growing consumer demands are coupled with a shortened supply chain. To remain innovative and accessible across multiple touch points, businesses are recreating a seamless digital customer experience. BORN is seeing an increased customer need for quick migrations to an online platform that is more robust.
• The ability to work remotely is an imperative. To lower costs and reduce complexity, many corporations are also now moving from an on-premise data storage to a cloud data storage. 

Is moving to Cloud Storage Necessary?

BORN is consistently asked when and how to make the move.  Cloud storage allows corporations to easily connect with customers, clients, and other businesses, all at a reduced cost. There is a reduction in deployment time, which is especially significant given the recent economic circumstances. However, corporations placing a heavy emphasis on security and control would probably find more comfort with on-premise data storages and must factor in that this will still require on-site support.

How do B2C eCommerce solutions help brands adapt to these circumstances?

For a business to remain successful, it must cater to the customer’s unique buying proposition by offering personalization, convenience, and transparency. ‘The paradigm of a unique selling proposition has been overtaken by a unique buying proposition,” stated Keith Pires, SVP, Enterprise at BORN. 

To meet the customer’s unique buying proposition businesses must first gather the necessary information on clients in a different stage of its buying journey.  Following its acquisition of Qualtrics, SAP has seamlessly developed a solution that provides a holistic view of customer experience utilizing both experiential and operational data to deliver solutions following every step of the customer journey. Creating a unified customer experience while technically delivering it successfully oftentimes poses a challenge.

How do you implement an eCommerce solution quickly?

BORN developed an accelerator that allows B2B, B2C, and B2C2B commerce enterprises to reduce implementation costs by up to 40% and time-to-market by up to half, all without sacrificing quality.  ‘Even before the pandemic, customers were asking for the full power of SAP Commerce Cloud but in an accelerator approach,’ said Alex Stickelberger, Principal at BORN. ‘We built BORN EAGLE with a robust set of design, UX & UI features and pre-built integrations we developed. In addition, it is the first-ever certified SAP pre-packaged commerce solution.’

What recent innovations in SAP Commerce Cloud support a quicker implementation?

SAP Commerce Cloud helps create digital transformation for businesses by enabling omni-channels strategies, contextual customer experiences, and unifying customer processes.

With a newly-developed storefront called Spartacus, SAP Commerce Cloud Clients can utilize an angular based framer through JavaScript. This removes the need for complex frameworks and allows customers to deploy with little to no downtime.

What should retailers consider as restrictions ease?

It’s important to plan for the gradual re-opening. ‘One critical factor is logistics,’ says Keith Pires. ‘Is a business providing convenience and visibility to the customer?’

By offering a transformative experience in the digital front, businesses can provide customers with a one-to-one experience which can be developed into brand loyalty and trust. Consumers are forever-changed in how they shop and interact with their favorite brands.  It’s time for businesses to rise to meet their new expectations.  

When juxtaposed with a vicious pandemic and turbulent economy, these recent events may feel exceptionally overwhelming and deeply uncomfortable to confront as a society. However, BORN’s identity rests on being bold and authentic – it is essential for us to stand by our convictions and be resolute in times of adversity and need.

The aftermath of George Floyd’s death has sent shockwaves throughout not just the United States, but the world, calling into question the mandate of law enforcement as well as reopening necessary dialogues on race. When juxtaposed with a vicious pandemic and turbulent economy, these recent events may feel exceptionally overwhelming and deeply uncomfortable to confront as a society. However, BORN’s identity rests on being bold and authentic – it is essential for us to stand by our convictions and be resolute in times of adversity and need. 

As a forward thinking agency that is rooted in helping brands find and strengthen their digital identity, we also want to maintain a commitment to support communities in their struggle to defend their own personal identities. We affirm fully with the fight against systemic racism throughout the world and acknowledge that there must be an active, persistent effort to end the marginalization of Black lives.

We employ a very diverse and global community, many segments of whom are a direct product of the triumphs and victories of past civil rights movements and struggles for social justice. Without the contributions of the Black communities’ fight for equal treatment under the United States law during the 1960s, there would be no Immigration and Nationality Act of 1965 – a hallmark piece of legislation that repealed the harsh anti-Asian and anti-Latino immigration quotas inflicted in the Immigration Act of 1924. As an agency and institution strengthened by those many immigrant diasporas that are the legacy of that legislation, we understand and acknowledge that we would not enjoy the success that we do today without the tireless work of Black activists in the 1960s. It is only right for us to show solidarity and support in turn for the crises that still continue to impact them to this day. 

These movements feel painful as a society to bear and may inspire nostalgia to a time before these grievances were made so publicly known. But to those grieving and many otherwise, these struggles are not a ‘new normal’ but an everyday reality. We take some solace in knowing that the history of the United States is filled with many moments like this – it is a maverick nation rife with protest and civil disobedience that, when at its best, is fearless in challenging a privileged class or institution to better the human condition. We can only look to the national myths around eighteenth century patriots dumping tea into the Boston Harbor, nineteenth century patriots demanding an end to the institution of slavery, or the great marches of twentieth century patriots against segregation and war, to see where this energy for civil disobedience stems from. While we do not condone theft, violence, or the destruction of personal property in protest, we also would be remiss to claim those incidents as isolated only to the struggles of the George Floyd protests, and instead note that they come from an impassioned zeal to end a state-sanctioned brutality that has been unaddressed for decades, if not centuries. 

Yet, one of the great successes in the American experiment rests in the consecrated belief in a right to life, liberty, and the pursuit of happiness – something which racism and prejudice inherently challenges by denying or marginalizing the condition of one’s humanity and place in society. The United States Constitution has seen those sentiments enshrined over time by slowly enfranchising more and more of its peoples to have a chance at the American dream via amendments such as the fifteenth and nineteenth, which saw race, religion, and gender dismantled as qualifiers of civic participation. There is some relief in knowing that change has been historically possible and is part of the American system – but that change never came by keeping idle against racism and prejudice.

Fundamentally, prejudice of all forms is a great dampener in the will of a society and it is why, on a utilitarian level, societies tend to move away from it with time. Reinforcing, defending, or failing to challenge the belief that one race or community is less than another ensures that the spirit of an underprivileged group will inherently be deflated and unmotivated to rise to the challenges that society faces, and enables abuses and injustices against those underprivileged groups to fester unaddressed.

However, few prejudices enable such unaddressed violence and death as often as those against Black lives – and for that reason, BORN is making commitments towards a Equal Rights Fund made up of the Equal Justice Initiative, Black Lives Matter, the NAACP, and the Lower East Side Girls’ Club to contribute financially to the causes against police brutality and systemic racism. We invite our team to reflect today on Juneteenth, which commemorates the full abolition of slavery in the United States, and we commit towards providing new content that sheds further light to our principles in equity and justice. Together, we can bring awareness and make change in the fight against racism and strengthen the equality of all before society and the law.

1: The 4 Horsemen

“The 4 Horsemen’’ coined by Scott Galloway are businesses worth over a trillion dollars. The big four include Facebook, Apple, Amazon, and Google. These companies are involved in almost everyone’s day-to-day lives dominating not only our online experience but also the corporate world. But, what makes these companies so successful is their ability to identify and satisfy human needs. 

2: Appealing to Human Instinct

Google has become the replacement for a higher power. In this modern age Google becomes the first place a person turns to when a question is left unanswered. Apple adds to a person’s sex appeal. When someone has an Apple product they are perceived as wealthier, fashionable, and increasing sex appeal. Amazon has become a ‘temple of consumption’ as it provides us with a seemingly endless assortment of products. With over 1.2 billion daily visits to their site, Facebook has managed to gather nearly one-sixth of the world’s population in their digital space on a daily basis. By appealing to our daily human needs, these four companies have grown to dominate the business world and play an essential role in our daily lives.

3: Benjamin Button Effect

The ‘Benjamin Button Effect’ represents an algorithm or product which appreciates in value with every usage from its customer. The ‘Recommendation’ tab on Netflix systematically changes and improves each time a user watches a new tv show or movie. As the individual increases the number of movies and tv shows watched more data is added to the system creating a more personalized selection for the customer. Providing both an assortment of entertainment and an algorithm catered to every individual user, Netflix has become globally renowned as the preferred hub for movies and tv shows. Amazon utilizes a similar effect with a “Similar Products’ function. Its algorithm recognizes what each user has recently or frequently purchased in the past and offers similar products in hopes of increasing sales. Companies which utilize the ‘Benjamin Button Effect’ gather more insight on the customer and are more aware of sudden changes in consumer behaviour. 

4: T-Algorithm

The T-Algorithm, developed by Scott Galloway’s L2 Market Analysis Company, was used to identify startups which would join an elite group of companies worth more than one trillion dollars. This algorithm was identified by analyzing the characteristics of four companies: Amazon, Google, Facebook, and Apple. These companies are characterized by the same 8 variables: Product Differentiation, Visionary Capital, Global Reach, Likeability, Vertical Integration, Artificial Intelligence, Career Accelerant, and Geography. 

5: How do the ‘Horsemen’ reflect these variables?

Each of the four have the ability to deliver superior products. Apple has their appraised iPhone, Amazon has a myriad of products in their assortment, Facebook brings one-sixth of the world together in their digital space, and Google can answer virtually any question thought of by the human mind. With Visionary Capital, each of the four have a long term goal in mind. Facebook wishes to connect the world in their digital space while Google seeks to organize all data on their platform. The four Horsemen have extended their reach on a global scale as people from all over the world either use or are familiar with these companies. To avoid intervention, a company would need to develop a sense of likeability if it wishes to be accepted in society. Each of the big four hold vertical integration as they control each step of the production and distribution of their products. To create an efficient algorithm to gather and store countless data, powerful artificial intelligence must be used. Strong artificial intelligence and digital presence is a pinpoint for brands wishing to establish their name in the business world. An amazing business requires an amazing team. For a business to join the big four it must be seen as an accelerant for one’s career if it wishes to attract talented individuals on their team. The final variable in geography. Each of the big 4 are established around top tier universities which allows the recruitment of the brightest minds. 

“The Digital Age is Heraclitus on steroids: change is a daily constant,” added by Scott Galloway, NYU Professor of Marketing. By cutting costs, establishing a recurring relationship with customers, and communicating risks and visions, companies can greatly increase their survivability in these disruptive and uncertain times. Businesses seeking to improve in their digital presence should follow the eight variables found in all four trillion dollar companies if they wish to remain agile and develop a long-term, sustainable business strategy.

If you were unable to attend our webinar we invite you to view the full recording here: https://us.vtex.com/scottgalloway

About BORN and VTEX:

Selling through digital channels has been accelerated a decade forward in a short span of three months thanks to COVID-19; and it has happened across every industry. As a global leader in collaborative commerce solutions, VTEX is ready to help you succeed with your commerce strategy, be it B2B, direct-to-consumer or launching your own marketplace. Working together with BORN Group, an award-winning full-service digital commerce agency, we help organizations deliver collaborative commerce experiences to meet today’s “new” buyer demands. 

For more information, please reach out to Mackenzie Johnson, [email protected].

Evolution of loyal marketing

Early loyalty marketing started out with premiums offered to customers that encouraged them to return. In the 18th and 19th centuries, brands offered tokens, certificates or tickets that customers could exchange for other items in-store, effectively offering them a discount. By the end of the 19th and well into the 20th century, stamps – the most famous among them S&H Green Stamps, followed by Green Shield in the UK – replaced tokens. Green Stamps could be collected from for purchases at select retailers and redeemed for products from a catalog.

Individual brands and retailers wanting to engage with their customers led to the creation coupons printed on top of packaging that could be redeemed. Betty Crocker started with these so-called box tops in 1929 but it was Kellogg’s offers and tie-in with their cereal boxes since 1909 that inspired so many brands to follow suit.  

The modern loyalty program can be traced back to American Airlines’ frequent flyer program that was set up in 1981 and sparked off an entire industry. Since then, frequent-usage points or miles for airlines, hotel, car rentals have become so ubiquitous that the phrase ‘card-carrying member’ has entered the lexicon. In the UK, one of the first in-store rewards cards backed by a chain was Sainsbury’s Homebase Spend & Save card in 1982.

Credit cards have also allowed customers to accumulate points, and it seems like every major retailer has set up a loyalty card (or rewards or advantage or points or club card) that imitates a credit card – with a magnetic stripe – that either offers a better price or points for a purchase made in-store. This ubiquity has led to customers not being very ‘loyal’ at all.

Frequent flyer programs, which involve the management of tiers, rewards and redemption, in essence, moving millions along on their customer journeys to become top-tier members, are a complex and expensive exercise. In the US alone, companies spend a staggering US$2 billion on loyalty programs every year. Still, engagement is not high. The average US household has accumulated over 20 loyalty memberships and only uses a fraction of them. In the words of Hal Brierly, the man who designed loyalty programs such as American’s AAdvantage, United Mileage Plus, Hilton HHonors and Hertz #1 Gold, “Programs need to evolve toward a sustainable, profitable structure that’s still desirable for the customer.”

Membership programs

The cons of traditional loyalty programs led to the growth of a disruptive variant: membership programs. Unlike loyalty card programs, which are free to enter, customers pay for inclusion in a membership program. Book and music retailers usually go this route. Amazon Prime is one of the largest membership programs with more than 150 million members worldwide. One of the most successful examples is wholesale club Costco, which only allows members to shop, receive discounts and access special merchandise. The Dollar Shave Club, which allowed members to receive shipments of blades on a regular basis, captured a significant 15% market share in the short period of five years before it was sold to Unilever, and forced competitor Gillette to revamp its membership program. Membership fees increase commitment from customers. The predictability of repeat business and cash flow results in significant cost-savings to the business too, not the least from reduced marketing costs. Retailers can also target customers through better product selection and design.

Paid membership programs are particularly valuable as many of today’s consumers expect immediate gratification, even if they’re making their first purchase with a brand. In fact, two-thirds of consumers report that they’d join a paid membership program offered by their favorite retailer if the rewards were relevant, with that number increasing to 75% for younger consumers between the ages of 18-34.

Nikhil Naidu, Product Marketing Manager – Loyalty & Referrals, Yotpo

Mobile adoption

Cards themselves are being increasingly replaced with apps as eCommerce and digital payment infrastructure take off. Nowadays, mobile-optimized apps that use near-field communications are gaining ground. Even Cracker Jack, which included a novelty prize in its boxes of caramel popcorn starting 1912, announced in 2016 that the prizes would be replaced by nostalgic games that could be downloaded onto its app via QR code. 

Things to consider for a loyalty program

Once the domain of majors, now even a smaller player can run a sophisticated loyalty program. Here are a few takeaways gleaned from the successes of the best loyalty and membership programs out there.

Simplicity is key

Keeping the adoption process easy and simple is the key to getting customers on board. Pop-ups, freebies, discounts and reminders on your website can remind them to join. Ask only for information that is really needed. Once aboard, they should easily understand what their status is, what their points are and what their potential rewards are. The Starbucks Stars app, one of the best apps optimized for mobile and through which purchases can be made, goes one further and acts as both a rewards program and payment method. The points system is simple too – US$1 gets 1 star. According to Bond Loyalty Report, 57% of consumers want to engage with their loyalty programs via mobile devices, but 49% don’t know if their programs have an app. Make the redemption process easy to navigate. And of course, make sure you don’t upset older consumers when you restructure programs either.

Reward engagement

Loyalty programs need to reward devoted customers beyond just purchase. Don’t just reward new members, keep in mind existing members too. A tiered solution such as Sephora tri-tiered Beauty Insider program is ideal. Reward them for a variety of actions from sharing on social media to customer referrals. Customer engagement can support a retailer’s marketing, bring in new customers and grow revenue. Track loyalty metrics like churn, response and retention rates. The idea is to move them along on their customer journey as they interact with your brand and finally become advocates, and the rewards and incentives for them to do so should be commensurate, relevant and tailored. 

Personalization

The creation of an account for a customer to track lifetime sales also results in a rich vein of data that can be mined to understand shopping patterns and target them better. eCommerce-led businesses can take advantage of the data to come up with targeted sales and marketing for an audience of one. Furthermore, only 11% of loyalty programs offer personalized rewards based on a customer’s purchase history or location data, so there is scope for much more customization of incentives.

Repeat business from loyal customers might be key for businesses to persevere through and bounce back after the COVID crisis, and well-designed loyalty programs that go beyond points and are sensitive to their users’ needs during this difficult time as well as after are going to make it infinitely easier for them to support their favorite brands.

About BORN partner Yotpo: Yotpo, the leading eCommerce marketing platform, helps thousands of forward-thinking brands like Rebecca Minkoff, MVMT, Bob’s Discount Furniture, and Steve Madden accelerate direct-to-consumer growth. Yotpo’s single-platform approach integrates data-driven solutions for reviews, loyalty, SMS marketing, and more, empowering brands to create smarter, higher-converting experiences that spark and sustain customer relationships.