LINE Business Connect × Coach Japan: New Possibilities for CRM

Even for industry professionals who consider operating LINE Official Accounts a given in branding, delving into the specific benefits of LINE Business Connect often reveals a lack of definitive "one-size-fits-all" solutions. It's not just about stickers and coupons! We spoke with Dentsu Inc. iX's Johei Shimizu, Aya Kamimatsu, and Eri Kawamura, who manage Coach Japan's campaigns, about leveraging LINE Business Connect for CRM operations that heighten user excitement.

What exactly is LINE Business Connect?

——First, could you explain LINE Business Connect again?

Shimizu: "LINE Business Connect" is a service where LINE provides contracted companies with various official account functions via API, allowing each company to customize and publish them. This enables one-to-one messaging and two-way communication between companies and users. It also allows companies to store messages received from users in a database and customize and deliver messages to each user individually.

——What is the key difference between campaigns using LINE Business Connect and regular social media campaigns?

Shimizu: LINE Official Accounts are known for high message open rates and strong conversion rates, effectively driving awareness, engagement, and purchase. However, typical campaigns often peak at conversion points like purchase. Adding LINE Business Connect allows you to energize the post-conversion phase as well. Leveraging the one-to-one communication feature of LINE Business Connect allows for stronger engagement phases like post-purchase repeat business and fan cultivation. This is the biggest difference.

—— Are clients also recognizing the importance of one-to-one communication?

Kawamura: Yes. Actually, Coach Japan, which we handle, showed strong interest in this point right from the orientation stage. Of course, there were voices saying, "We want to create a big buzz with the LINE Official Account," but also, "With LINE, we can do interactive communication and even CRM, right...?"

Kamimatsu: Coach, headquartered in New York, emphasizes "Local Relevant" strategies—marketing rooted in each country's context. This drove their decision. They wanted to test how far Japan's most popular tool could go.

Shimizu: Since using LINE Business Connect was a prerequisite, we decided to implement our in-house developed platform, " TONARIWA." LINE Business Connect's functionality is limited to what's exposed via its open API; beyond that, it's essentially "use it however you like." The service itself doesn't include messaging capabilities for sending or receiving messages. Therefore, executing planned campaigns almost always requires a system like TONARIWA to manage message transmission and reception.

Of course, other companies also offer platforms that integrate with the LINE Business Connect API. However, being able to advance creative and system development as a set is one of the strengths of Dentsu Inc. iX.

Challenging Affinity with High-End Brands

—— Since Coach Japan's official LINE account launched in June 2015, multiple campaigns have been conducted within the first six months, correct?

Kawamura: Yes. The first LINE campaign was the release of the official LINE sticker set "coachpups" (distributed free from July to October). In August, we held in-store events and an ICE CANDY TRUCK event utilizing those stickers. Then, from late November through December, we ran the HOLIDAY GIFT ADVISOR initiative.

—— These are year-round initiatives centered around LINE. Were there any particular creative considerations?

Kamimatsu: The client's request was to run the campaign while maintaining Coach's brand image, yet also aligning with LINE's image, its pop sensibility, and the affinity with LINE users themselves.

To avoid leaning too heavily on LINE's atmosphere while still expressing Coach as a "Local Relevant" brand, we collaborated with up-and-coming artists gaining attention in Japan and focused intensely on the output. We worked closely with the headquarters creative team right up to the final stages, ensuring the content would resonate with LINE users in their daily conversations and align with what would be accepted in the Japanese market.

Kawamura: The US side initially struggled to visualize how stickers would be used, so we even had to teach them the basics. It seems to be used differently from Facebook Messenger stickers or emojis, making it quite unique.

—— Did you ever feel a disconnect with LINE users, like whether the brand was effectively reaching its target demographic?

Kamimatsu: While LINE has a youthful image, it's actually used by a wide range of users from their 20s to 50s. Coach's customer target is similarly broad, so the key was incorporating LINE's tone while carefully preserving the brand image and providing content that resonates with fans.

Coach is currently undergoing a transition period with a new Creative Director. LINE serves as a platform for users to experience the new "modern luxury lifestyle brand" they are proposing, enabling a broader approach that includes demographics we previously couldn't reach.

The first campaign was the official LINE sticker set "coachpups" (now discontinued).

A real-world integration project: sending the "coachpups" sticker from your home screen (right photo) revealed the location of a truck distributing free ice pops. Users gathered faster than anticipated, and it also became a hot topic on social media.

When you spark users' "delight," cross-media diffusion follows.

—— The fashion diagnostic content " HOLIDAY GIFT ADVISOR " for the Christmas season is proving popular. A key feature is that it's being shared even without incentives like "get a gift if you do X."

Kawamura: We had already grown to 540,000 users through previous campaigns. However, HOLIDAY GIFT ADVISOR was featured in a sponsored article on LINE NEWS on its launch day. As a result, it was used by 440,000 people on the first day alone, and the growth rate of LINE Official Account friends reached 2567% in just one week. It was a pleasant surprise.

Kamimatsu: For the campaign creative, we prioritized two things above all: "not interfering with LINE's signature light and responsive feel" and "stripping down elements to achieve simplicity." These were specific requests from the client. To ensure the core goal of getting users to use the service wasn't hindered, we paid meticulous attention to text and interactions.

We arrived at a solution where everything could be completed solely on the home screen, avoiding any unnecessary additions. Simultaneously, it was crucial to accurately gauge and trust the user's literacy level. Striking a balance—avoiding overly intrusive features or explanations that could degrade usability—likely contributed to the positive outcome.

—— LINE is a relatively private platform, so the fact it was widely shared is a testament to your thoughtful approach, right?

Kamimatsu: When users make a happy discovery, they'll go to the trouble of taking screenshots or saving images just to share it. There's no obvious incentive, so not everyone shares, but on the other hand, we get genuine reactions. We're seeing a steady, positive increase in evaluations, which is a very welcome result.

Shimizu: LINE is an extremely closed platform, so it doesn't see the kind of viral spread typical of social media. But if users have motivation, they will share. Users with higher digital literacy know how to use tools in ways that suit them. So, my real takeaway is that for social media creative—including LINE—the focus should be less on mechanisms to force sharing, and more on creating content that people genuinely want to share!

Kamimatsu: A recurring keyword in client conversations was being shareable and "Instagramable" (easy to post on Instagram). With the emergence of various tools and services, users' standards for what they deem "good!" have risen. Unless something is genuinely perceived as cute, it won't get shared.

Kawamura: Also, for example, adding the user's name to the HOLIDAY GIFT ADVISOR results makes it feel more "personalized for me," making it easier for them to say, "Look, look—my results!"

—— Finally, what's the power of one-to-one communication via LINE Business Connect?

Shimizu: "My [something]" is indeed the keyword. The real appeal of LINE Business Connect is that LINE generates incredibly strong user engagement. If you can provide content that makes users feel it's being done just for them, that it's personal to them, you can get 10 times, sometimes even 100 times, the engagement you'd get with traditional media. In CRM, it's crucial to create content that prompts reactions to get direct feedback from brand fans. Of course, it depends on the campaign, but precisely because it's communication within the closed space of LINE's chat screen, I feel it holds the potential to maximize interaction.

The HOLIDAY GIFT ADVISOR campaign runs until December 25th. Users select the recipient (themselves/partner/family/friend), enter the recipient's name in the chat screen, and answer personality questions using only numerical input. From 16 fashion styles, the diagnostic result generated by the entered name appears, recommending holiday gifts tailored to each type. User information from campaign participants is accumulated, enabling personalized messaging based on each type.

Additionally, an O2O initiative will run at two Coach stores in Tokyo on December 12 (Sat) and 13 (Sun). Participants can receive fortune-telling cards specific to their diagnosed type, special gifts, and portrait sketches by an artist in-store.