0:00 Welcome, everyone. I'm Thierry, and I lead our client success operations in the Netherlands and Belgium out of our Amsterdam office. 0:08 I am thrilled to be joined by Kiki Kruse, Head of Online Shopper Excellence at L'Oreal Luxe Benelux. Today, we're going to unpack how a beauty giant like L'Oreal Luxe supercharge supercharges their user generated content program powered by Bazaarvoice to build continued trust in an era where shoppers demand authenticity and AI is changing product discovery. 0:35 So, Kiki, let us hear what has been the initial spark for you behind this partnership. Yes. Thank you, Thierry. 0:43 And I just wanted to share, I'm very happy to be here today. So for us, consumer voices are at the heart of how we win online and in store. 0:52 And with our UGC program, we combine real experiences with cutting edge AI to boost sales across brands and to turn trust into conversion in beauty ecommerce. 1:03 Okay. So let's break it down in three parts here on how L'Oreal Luxe builds trust with consumers through UGC. 1:12 First, we cover the foundation that is the partnership between L'Oreal and Bazaarvoice. Second, we look into how trust and authenticity show up on L'Oreal's own websites. 1:26 And third, on how authenticity that authenticity travels well beyond brand websites such as into retail website networks. 1:34 So Kiki, let's talk about the partnership that made this possible. L'Oreal and Bazaarvoice have been working together globally since twenty twelve, rolling out ratings and reviews, questions and answers, brand to retail content syndication, sampling review campaigns and some social commerce, all across your global brand portfolio. 1:57 Yes, correct. And in EMEA and across all of our four divisions, we've deployed Bazaarvoice across fourteen countries, supporting twenty languages on over one hundred and twenty brand websites, and in total, generating more than two million displayable reviews in twenty twenty five. 2:18 Okay. So we can see here that such a scale means that UGC is not just a test. It's a global content engine with content syndication pushing those authentic voices to retailers and marketplaces out there. 2:33 Yes. True. Ratings and reviews and questions and answers give shoppers the real insights that they need from genuine consumers. 2:42 So while sampling really brings new voices into the mix, and it's the foundation that builds trust with every customer along the full funnel journey. 2:52 Okay. So now let's look at your house of brands, Kiki. Yes. So if we take one step back and to give you a sense of the stage that we are playing on, here you can see the L'Oreal Luxe portfolio, where some of the brands have different levels of maturity in being direct to consumer and in using UGC as well. 3:12 And you can see that we have some of the most iconic names in luxury beauty, which we're very proud of. And each of these brands has a distinct identity and specific consumer. 3:24 But the common threat here is that all of them rely on trust, trust in efficacy, in shades, in texture, and in results. 3:32 And that's exactly where UGC becomes a strategic asset rather than just a marketing asset. Excellent. So let's look now at the business figures for L'Oreal at large. 3:43 Indeed. So before we dive into the UGC metrics properly, we wanted to ground ourselves in the bigger picture. So bear with me because the twenty twenty five numbers aren't out yet. 3:53 So these figures are for twenty twenty four for reference. Our annual reporting shows that the Luxe division is representing a significant share of sales with e commerce growing both in absolute terms and as a share of total sales. 4:09 Yes. So these business figures actually put into perspective the size of the subsequent UGC programs across brands and your imperative to maintain leadership in luxury beauty. 4:21 Exactly. And staying number one means protecting customer trust at scale. And our growth, both overall and in ecommerce, relies heavily on digital engagement and where Bazaarvoice social proof has been crucial. 4:37 Every euro of revenue needs authentic customer voices behind it. So the deepening of regional integrations and the making of UGC central to product launches are top priorities for us at L'Oreal. 4:50 Okay, Kiki. Now let's look into your own eDTC strategy for the LUX division. Yes. 4:59 So you see in such a competitive environment, you could wonder why we keep investing in our eDTC websites instead of relying only on retailers and pure players. 5:08 So for us, there are three main reasons here. Firstly, they often they're often our largest audience. These sites are our biggest doors in terms of traffic and sometimes even in sellouts. 5:19 Secondly, they're a powerful engine for our first party data with a very strong opt in rates and contactability. And, of course, this is crucial for CRM and personalization. 5:31 And thirdly, we see a strong halo effect on other channels. A large scale of sales attributed to EDTC media actually happens on other channels, which proved that these sites influence the entire ecosystem. 5:44 Good. So now keeping on with the L'Oreal Luxe division, what are your challenges and your bets? Yes. 5:54 Because, of course, it's not all rosy, and we share some of the same challenges that most brands face. A decline in traffic, especially on paid channels as acquisition cost rise, and the difficulty of differentiating d two c versus other channels. 6:09 On top of that, AI driven discovery is changing how shoppers find and trust brands, which raises the stakes on the quality and consistency of our consumer content. 6:21 So naturally, we're focused on acquiring new customers and qualified contacts. We're we are focused on increasing free traffic, so we're less dependent on paid media. 6:32 Also boosting repeat visits to build loyalty and ultimately fueling the LLMs, the large language models, with abundant UGC. 6:41 Because AI discovery thrives on rich, authentic consumer voices that we collect and syndicate through Bazaarvoice. 6:49 And for all four bets, the UGC partnership with Bazaarvoice has been central. UGC becomes the magnet, and it attracts, reassures, and keeps peep people coming back to us. 7:02 Indeed. And that's exactly where we've been collaborating using product reviews, customer photos, sampling campaigns, social content to make DTC destinations more discoverable and more desirable towards repeat visits, whilst AI is reshaping some sections of the customer journey. 7:23 So the L'Oreal UGC program becomes the engine supporting all four bets, driving acquisition, sustaining organic traffic, fostering loyalty, and getting AI ready all at once. 7:39 Now we'd want to know, KK, why why UGC matters so much for the beauty business? Yes. So let me explain. 7:51 First, we have authenticity. Shoppers spots overproduce brand content instantly, whereas real voices build credibility that regular brand copy just cannot match. 8:02 The second is the influence of online content on in store sales. Customers read reviews whilst browsing in stores, creating seamless trust across channels. 8:14 Third, there's agent ecommerce. UGC gives AI agents the rich authentic data that is needed to then recommend L'Oreal products confidently. 8:25 Fourth, the matching with L'Oreal's core values. UGC shows diverse communities using our products and making L'Oreal's inclusivity feel genuinely experienced. 8:37 And fifth, but not least, of course, the revenue impact. When shoppers interact with UGC, sales conversion and revenue per visitor increase tangibly across the board. 8:49 Okay. So thank you. We are clear now on L'Oreal's five strategic pillars for the UGC program. Now let's go and illustrate all this. 9:00 Yes. So in a multi sensory category like beauty, especially we have skincare, makeup, and fragrance, one of our biggest challenges is translating touch, texture, and scent into the digital world. 9:12 Because how do you explain a fragrance notes or a cream's texture through screens? And, of course, we invest in strong brand content, like great visuals, ingredient explanation, and maybe video instructions, but all this content comes from us as the brand. 9:30 To truly digitalize the bricks and humanize the clicks, we need authentic content from consumers themselves because we believe that the most credible voice for our products is the voice of our customers. 9:43 And UGC brings that in store feeling into ecommerce. You see real customer feedback. That's why ratings and reviews are are on all our PDPs and why we're now exploring questions and answers together with Bazaarvoice. 9:57 It's a module where we can leverage the beauty community by giving shoppers a place to ask and get responses, so we can build trust at scale. 10:06 Okay. Interesting. So talking about PDP now. Now let's see the conditions of what makes a PDP perfect and how consumer content drives both online and in store performances. 10:21 More richer content means sales lift, a halo effect on store sales and a stronger trust across any touch point in the journey. 10:32 We can see that brands that improve their PDPs do unlock measurable converse conversion rates. 10:41 Yeah. True. On PDPs, adding more product and lifestyle images directly lifts conversion, while a plus content and short videos spark shoppers interest. 10:51 Then ratings and reviews finally really close the discovery loop. They provide a social proof and reassurance and instructed this decision. 11:02 So we see that shoppers are willing to pay more for brands that they trust, and we see that review rich PDPs outperform significantly in sales benchmarks. 11:12 So this is something we see across Bazaarvoice Bazaarvoice clients, all of our Bazaarvoice clients that visual UGC such as photos and videos with robust product reviews or questions and answers modules increase engagement and feed into that halo effect where online research boosts in store purchases. 11:34 Yes. So for us, the lesson is clear that content isn't just cosmetics, but it's a serious revenue lever when you get the PDP right. 11:43 Okay. Now to get back to trust and authenticity at L'Oreal Luxe, could you please develop on some examples about what that means, Kiki? 11:54 Yes. Authenticity and inclusivity are at the cornerstone of our approach, and Bazaarvoice solution help us give every type of beauty a voice on our website and ensuring really that diverse perspectives are heard and valued. 12:08 Whether we're talking about inclusive shade range or innovations like the Lancome Hapta tool that you can see here on the slides, this is a tool that supports people with limited hands and arm mobility to be able to apply makeup easily because we really want everyone to see themselves reflected in our products and in our content. 12:28 Right. And UGC is where that comes to life with different ages, skin types, skin tones, and individual needs, all visible in one place, making beauty for all more than just a slogan. 12:43 Actually, it's a fantastic approach. Yes. And if we go even, you know, a bit beyond the UGC, we also deploy some cutting edge beauty tech tools to bridge the digital and the physical even more. 12:55 For example, we have virtual try ons that lets shoppers simulate makeup on themselves for themselves in real time, And we also offer skin analysis tools to give instant diagnosis, scanning live camera feeds, or uploaded photos to recommend a personalized skincare routine. 13:13 Okay. So these two voices provide the trust, and the beauty tech delivers the personalized experience. And that together leads to consumer engagement and sales conversion. 13:26 Now let's talk about the outcomes. In twenty twenty five, your UGC program on Lancome and Kiehl's in the Netherlands and in Belgium generated twenty one thousand displayable reviews, all real voices fueling every part of the funnel. 13:44 When visitors have engaged with ratings and reviews, they had a sixty five percent higher conversion rate and a seventeen percent increase in revenue per visitor. 13:54 I know. Amazing. And actually, when starting the year before in twenty four, thirty percent of our online revenue was influenced by consumers who interacted with reviews, and that's a twenty five percentage points increase year on year. 14:10 This just goes to show how UGC is far beyond a nice engagement tool, but a real growth driver. And when consumers interact with reviews, revenue will follow. 14:21 So that's some results indeed. Let's look into how or what means do you use to measure that impact, some of the means. 14:30 Yes. So indeed, we mentioned the business results and impact of UGC in general on the PDP. But, actually, we see that UGC placement is what makes the difference between good and great. 14:43 On the slide here, this shows an AB test where we moved key information around, now displaying price description and reviews all above the folds. 14:53 And the referent with that information higher on the product page generated a significant uplift in revenue, then translated into a significant turnover impact as well. 15:06 Clear. So the message here is don't have shoppers work to find the social proof. When reviews are visible instantly, they foster engagement and thereby are far more likely to influence the decision making. 15:20 All this happens online and yet the business impacts goes further than online, right? So UGC impacts doesn't just take place online. 15:32 The Bazaarvoice data shows that in health and beauty, twenty seven percent of in store buyers do read reviews online before buying. 15:42 That's what we call the robo effect, as in research online, buy offline. And that translate into a robo multiplier, meaning that for one for every EUR one spent online that is influenced by reviews, we see EUR three other spent in store, so a robo multiplier of three in this case. 16:04 That's how the digital shelf is effectively impacting in store sales. Correct? Yes. And that is also exactly why we treat PDPs and online reviews as a part of the omnichannel experience and not separate ecommerce only assets. 16:22 Okay. So let's see more of that now, Kiki. Yeah. So you see nowadays, the shopper journeys are anything but linear. 16:32 It's spanning social discovery, brand research, retailer comparison, and in store purchase. And the beauty of UGC with Bazaarvoice is that we, as a client, fully own our consumer content. 16:45 Hence, we decide where we place it. So every review that we collect can be injected in media assets, in CRM, in store hero activations, and even powering the LLMs now. 16:58 Okay. So that omnichannel reusability of UGC is really a superpower. Yes. And that is also why UGC becomes mission critical as generative AI reshapes how consumers discover and decide. 17:13 Okay. So to that disruptor everyone is talking about, Gen AI. According to an e marketer research done last year twenty twenty five, over half of shoppers had used Gen AI for product research in the last six months then. 17:31 And those AI assisted shoppers are more than four times more likely to convert than organic search shoppers. 17:39 People now are using AI assistance to discover product, to make comparison, to find deals and gift ideas, or to discover unique items for the first time. 17:50 That means that AI is the new front door, one of the new front door for the product discovery. What do you think about that, Kiki? 17:58 Yeah. It's true. And this is also exactly why the quality of the underlying content, the reviews, the images, and description, all this matters more than ever. 18:08 If AI summarizes your brand's value points and product worthiness, you want it to integrate some trusted and fresh UGC to render the complete picture. 18:18 Okay. Definitely. And we use a framework to go at that at Bazaarvoice. So we call it triple a, and that's the recipe to win in an AI driven world. 18:30 Here goes. First, make content accessible, meaning clean, centralized, well tagged content so that AI can tap into it. 18:41 That includes structured reviews that are easy to surface and summarize. Then show that your content is authentic, meaning that it's verified, trustworthy, it's visible and reinforced by the Bazaarvoice Intelligent Trustmark. 18:59 Third, ensure that your content is abundant, meaning that you have enough content, depth and recency through sampling campaign, brand to retailer content syndication, creator content and, of course, ongoing post purchase content collection. 19:16 So that's in that way, you can get always fresh relevant content for both shoppers browsing and AI's input. 19:26 Yes. And for our teams, the triple a is just a practical checklist as well. If we keep content accessible, authentic, and abundant, we're not only ready for AI, but we're also delivering better experiences across the full funnel customer journey from early awareness down to solid loyalty. 19:45 Alright. So now, Kiki, as we are wrapping up, what are the three biggest items from L'Oreal Luxe UGC journey that all the brands could take away today? 19:58 So first of all, UGC is a hard revenue lever and not only a nice to have. When shoppers engage with reviews and photos, conversion and revenue per visitor increase online, in store, for brands and retailers altogether. 20:14 Second, DTC is the content engine for trust in the whole ecosystem. By combining branded content and UGC, bearing in mind the placement on the PDP, all that drives increased online and in store performance. 20:28 And third, the abundance UGC made accessible and authentic is what powers AI discovery today. 20:36 More genuine voices mean that AI services your brand when the shoppers need it most. Thank you. Instructive recap, Kiki. 20:44 That's how LOREA looks stays ahead by leveraging UGC not just for today, but also for the AI driven future.
