Oriflame case study

Machine Learning in practice

The aim of the implementation project was to improve the effectiveness of marketing communications and to better tailor the offer by introducing the segmentation of over 5.5 mln Oriflame consultants.

In this case study, prepared jointly with IDC, we present the practical application of machine learning tools which can be employed in order to find and use relationships between data to prepare effective algorithms supporting long-term business management. One of the mechanisms applied by machine learning is segmentation, owing to which marketing departments can follow more accurate marketing campaign methods, while HR departments and C-level executives may easily check which employees or clients bring the most benefits, which directly increases company performance, especially in such industries as retail, fashion and finance - says Paulina Ziarek, BI Expert and Product Manager at Comarch.

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Segmentation is normally used for the accurate identification of the most profitable or the most loss-making customers. .

The case study presents the entire implementation process from the perspectives of both Comarch and Oriflame, and is divided into the most important stages: from challenges to results.

  • Artificial Intelligence (AI). Any technique enabling computers to simulate human intelligence and make use of logic, decision trees, “if” rules, and machine learning.
  • Machine learning (ML). Part of AI, allowing computers to apply statistical mechanisms in order to achieve the effect of learning – an improvement of results.
  • Deep learning. Part of ML enabling computers to learn how to handle such tasks as speech processing or image recognition with the use of deep neural networks and big data.

How does machine learning help increase Oriflame’s profits?

Monthly updates to the segmentation are a source of new insights for C-level executives at Oriflame. The company uses self-adjusting segmentation results to forecast and plan new product categories.

  • See what benefits are brought by the effective analysis of big data and the implementation of artificial intelligence
  • Discover how machine learning was used to build a competitive advantage
  • This kind of implementation requires rational thinking and planning - find out what key facts need to be considered by companies before implementation in order to avoid any potential mistakes

Download Oriflame case study along with IDC analytical opinion

Learn more about the Business Intelligence platform and advanced statistical tools analyzing data related to Oriflame consultants actively operating in eight countries: Russia, China, Poland, the Czech Republic, Hungary, Slovakia, Romania and Greece.

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  • This Oriflame/Comarch project case study underscores the benefits that can be obtained from a successful big data analytics and AI implementation. It is a good example of an organization looking afresh at its data assets alongside its corporate goals, and using those assets to drive true business benefit.

    Philip Carnelley, AVP, Enterprise Software Group, IDC Europe

    Case study of Oriflame, an international cosmetics company

    Prepared jointly by IDC and Comarch

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