L'Oréal Paris & Chemist Warehouse

Objective

Stepping out to measure in-store foot traffic

L’Oréal Paris is the biggest beauty brand in the world with an extensive range of diverse, accessible and innovative products from makeup and skincare, to haircare and hair-colour. For more than 110 years, the brand has been dedicated to delivering beauty for all- a mission underpinned by a commitment to safety, efficacy and quality.

One of Australia's leading pharmacy retailers, Chemist Warehouse, is a much-loved Aussie born family business that has over 500 stores locally and expanding its presence globally. The retailer prides themselves on offering great savings across a wide range of brands and products.

Both L'Oréal Paris and Chemist Warehouse regularly run paid activity on TikTok to tap into the diverse and engaged beauty community on platform that share everything from beauty tutorials, reviews and product recommendations. Chemist Warehouse, in particular, supplements their paid activity with native content on their organic page (@chemistwarehouseaus) which covers topics such as beauty hacks, gift guides, product dupes and demos.

To date, Chemist Warehouse had measured the impact of their paid on-platform activity against online sales via their website but were eager to understand the impact the platform had on driving in-store foot traffic (offline sales). An exclusive and limited 50% off promotion of L’Oréal’s in-store cosmetics range at Chemist Warehouse presented the perfect opportunity to test out TikTok's impact on in-store activity.

Solution

Every step counts with Lifesight

Chemist Warehouse partnered with TikTok and Lifesight to become one of the first advertisers in Australia to test Lifesight’s Footfall Study solution with TikTok. Using this study, the retailer was able to measure the number of users who had seen the campaign on TikTok and then visited a Chemist Warehouse store to derive Store Visit Lift. That is, the difference in store visit rate between the audience exposed to the TikTok campaign and a non-exposed synthetic control group.

To support the campaign's execution on TikTok, L'Oréal Paris recruited the support of Australian singer and songwriter Jess Mauboy who is also a spokesperson and ambassador for the brand. In the creative, Mauboy shares her beauty secrets while using products from L'Oréal's cosmetics range that could be purchased at Chemist Warehouse during the 50% off in-store promotion. The ad prominently concluded with a CTA directing viewers to shop the range in-store at Chemist Warehouse.

The campaign tested two different audiences, a broad targeting audience and a first-party audience that leveraged Chemist Warehouse's existing customers. Using Lifesight's Footfall Study solution, Chemist Warehouse would then be able to distill and compare the impact of the campaign on these two distinct audiences.

Results

A campaign that walks the talk

While Chemist Warehouse anticipated that TikTok was having an impact on their in-store sales, the results delivered by the campaign reinforced this hypothesis. Overall, the campaign drove a 14.4% lift in store visits over and above people who would have visited the store even without the ads, indicating TikTok’s success in driving in-store traffic for Chemist Warehouse. In total, the study revealed there were 712K visits from people who were exposed to the TikTok campaign, representing 22.8% of the campaign's total reach on platform.

The campaign's creative also supported the successful execution of the campaign. Namely, the creative featured a strong "50% off" CTA that encouraged users to shop the L'Oréal Paris cosmetics range at Chemist Warehouse. This, coupled with the use of Jess Mauboy as a campaign ambassador, fuelled interest in the L'Oréal range, ultimately helping to drive people in-store.

As a result of this campaign, Chemist Warehouse has started to explore additional TikTok measurement solutions (BLS and Brandformance) to continue gathering valuable insight into their suppliers with respect to TikTok campaign activity.