By Qamar Tahasildar, current full-time SMU MBA student, MBA Marketing Club Lead
One of the main objectives with which we started the SMU MBA Marketing Club 2015 was to host talks by established marketing professionals from the industry.
The first speaker hosted by the Marketing Club was Simon Torring, head of special operations at the online beauty store Luxola.
He spoke about a variety of topics ranging from e-commerce, its tremendous potential in the Southeast Asian region and Luxola in particular. While in the U.S. and China, the e-commerce market accounts for roughly 8% of the total retail sales, it’s a mere 0.18% for the Southeast Asian region. Comparing these numbers, there is an untapped potential of $35 billion in the e-commerce market in the Southeast Asian region.
Simon explained the concept of costs associated with acquiring and retaining a customer. The amount spent on customer acquisition and retention should be lower compared to total profits obtained from a given customer over the lifetime.
He also spoke about the various challenges faced by Luxola. One particular challenge was to retain customers and not just direct them to the website for a one-time purchase. To address this, Luxola’s marketing efforts involved engaging the customers and offering them an experience that would facilitate repeat purchases, gaining long term customer loyalty. An example of this is Luxola’s lifestyle magazine, LX Edit. This magazine is regularly updated with the latest beauty tips and is a reason for many customers to return to the website.
He ended his talk with the promise of a case discussion on Content Marketing. We will bring you the experience of Simon’s next session in another blog. Watch this space for more!
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