L'Oreal Validates Outsourcing Contract
-----------------------------------------------------------------------------------------------------
June 11-12, 2005 - The Sun, Weekend.

L'OREAL Malaysia Sdn Bhd has validated its existing loyalty outsourcing contract with management consulting firm Customer Loyalty Solutions (CLS) to further provide a vast range of quality products to its retailers.


Under the contract, CLS, a subsidiary of Advance Information Marketing (AIM), a leading business process outsourcing provider in loyalty management services, provides data management expertise and procurement and fulfillment services to L'Oreal.


In a recent statement, CLS said the contract involved transforming complex customer data into actionable insights, data mining, designing and developing an ideal points system, sourcing for the desired merchandises, storage and distribution to customer base.


Since the launch of the loyalty programme in January 2003, it said L'Oreal's relationship management with retail (salons) across the country had improved significantly as more retailers surpassed their individual sales target and the company's 2004 sales revenue increased to 16% from RM8.4 millions in 2003.


Said Low Yee Lee, marketing manager, L'Oreal Professionnel, L'Oreal Malaysia Sdn Bhd "CLS has given us the expertise and resources to achieve these business outcomes."


Low said in the last two years, CLS had demonstrated their capabilities in raising the standards of loyalty performance to meet L'Oreal's expectations and made its fast consumer business more competitive in this challenging economy.

"CLS's initiatives in developing a suitable points-driven loyalty programme led to L'Oreal's constant sales growth. This is a great testimony to their creative approach to customised loyalty management not only for end consumers but also for business dealers."


CLS Sdn Bhd general manager Ooi Hooi Cheng said "Our key success factor has been a genuine collaborative approach and getting to know intimately the L'Oreal's retailers' desires, preference and purchase cycles.


"We aim to assist the company in meeting its objectives and sustaining its achievements by continously creating customer experience and adding value to its loyalty programme."


Currently, CLS manages L'Oreal's loyalty programme for more than 100 retail salons.


Beginning from January 2005, the loyalty programme was extended to its sales force, creating a dual-tier programme that rewards both the retailers as well as the team with a vast range of merchandises.


In addition, retail salons will enjoy double points accumulation each time they achieve their sales target.