Omnichannel Marketing in the Beauty Industry

How can AI and AR Enhance Your Beauty Brand?

Do not get stuck in the ways of the past as the world advance. Let me tell you how you can enhance your beauty brand! The world of digital marketing is forever changing, and businesses must change along with it. Customers expect products to be delivered at the speed of light and services to be more convenient than a corner store. Brick and mortar retail stores have created an online presence, some more advanced than others. Some may wonder how they could sell their cosmetics, personal care, and hair care products online since this type of retail is considered high-touch customer service. A high-touch approach refers to having a high level of personal contact and attention.

What if I told you that some of the leading beauty brands have implemented technologies that help them provide the same service online as they would in the store? Well, I am telling you it’s happening! Artificial intelligence (AI) and augmented reality (AR) are among the most prevalent technologies organizations use to provide their customers with a seamless experience.

What is the difference between AI and AR?

“AR is a virtual experience that adds digital elements to the real world. This enables users to interact directly with those elements” (Hughes, 2021)

“In the simplest terms, AI, which stands for artificial intelligence, refers to systems or machines that mimic human intelligence to perform tasks and can iteratively improve themselves based on the information they collect. AI manifests in a number of forms.” (Oracle, 2022)

AI uses algorithms and statistical models to perform tasks without specific commands whereas, AR forms a virtual representation of the physical world. AR should not be confused with virtual reality (VR). VR intends to engage the user completely in the digital world, and AR overlays digital facets onto the user’s actual environment.

The pandemic has shown us that maybe we do not need to rely on in-store assistance for cosmetic products. Customers relied on trying on makeup to ensure they were purchasing the correct match. Although the beauty and personal care market is back on the rise, amounting to a projected $564,438 million for 2022, the industry took a hit in 2020, estimating at $483,338 million from $ 504,501 million in 2019. The beauty and personal care market is expected to grow annually by 4.76%.

How has the cosmetic industry applied AI and AR?

Virtual Product Trials

AR-operated virtual mirrors that allow customers to try on cosmetic products in real-time.

Personalization

Recommendations of relevant products based on customer information and existing trends

Product Development

Natural Language Processing (NLP)

Examples of Beauty Brands Using AI and AR:

Beauty created a duplicate realistic store experience, allowing browsers to walk through the store and zoom in on products
No7 partnered with beauty tech company Revieve, made an AI beauty advisor that analyzes skin selfies and offers relevant product recommendations.
John Paul Mitchell Systems will launch an AI hair analysis to evaluate consumers’ hair and scalp and recommend products across John Paul Mitchell Systems’ brands.

Personalization will be vital in creating effective AI or AR marketing. Although many services are moving online, it is still essential to provide the customer with a high-touch approach due to the products being sold. For example, no one wants to purchase cosmetics and personal care without the confidence that it will be appropriate for their skin. AI and AR are pricey and may not be feasible for every business, depending on the stage it’s in. However, become educated on the technologies and determine what would work best for your company. You will find the program right for your business with research and time.

Do you have an AI or AR marketing strategy for your company? Leave a comment below to discuss how the technologies have worked for you or have considered it.

References

Hughes, J. (2021, July). 3 ways to augment your website with AR. Velocitize. https://velocitize.com/2018/08/13/3-ways-augmented-reality-website-ar/

Nambiar, K. (2021, September 13). 3 applications of AI in the cosmetic industry. Analytics Steps – A leading source of Technical & Financial content. https://www.analyticssteps.com/blogs/3-applications-ai-cosmetic-industry

Oracle Cloud. (2022). What is artificial intelligence (AI)? Oracle | Integrated Cloud Applications and Platform Services. https://www.oracle.com/artificial-intelligence/what-is-ai/

Radin, S. (2021, November 10). The future of beauty is powered by artificial intelligence—But is that a good thing? Coveteur: Inside Closets, Fashion, Beauty, Health, and Travel. https://coveteur.com/2021/01/27/beauty-ai-technology/

Statista. (2022). Beauty & personal care – Worldwide | Statista market forecast. https://www.statista.com/outlook/cmo/beauty-personal-care/worldwide

Influencer Marketing. Is it worth it?

So, you’ve been struggling with the decision to invest in influencer marketing. You’re wondering if it’s worth it or a waste of time and money. I am here to tell you that you should consider it and if it’s within budget, do it! According to the trends, influencer marketing is here to stay! So, go ahead and start researching who can potentially be one of the faces of your beauty brand.

According to the PR Daily, there are five influencer marketing trends to look out for in 2022. See in the image below:

You may be thinking, how are you going to get a big-name influencer with millions of followers such as Jackie Aina to promote your brand. Here’s the thing, data shows that nano and micro-influencers are becoming more prevalent and relevant in 2022. Nano influencers have between 1,000 – 5,000 followers, and micro-influencers have 5,000 – 20,000 followers. Utilizing influencers with a smaller following can help diversify partnerships, and they are typically more relatable to the intended audience.

Many users and influencers are increasing their presence on TikTok. There is more engagement on TikTok than on Instagram, and half of the influencers fall in the nano category. The more your customers are engaged, the more likely they will convert. TikTok is on the rise, but it still falls behind Instagram. “Although TikTok is catching up, Instagram’s influencer market will continue to dominate. The influencer market is predicted to grow to be worth $2.2 billion USD by 2025.” (Croagh, 2022) So, don’t ditch one platform for another. Utilize as many that make sense for your brand.

U.S. social commerce shoppers are expected to surpass 100 million by 2023. Therefore, it is essential to consider incorporating social commerce into influencer marketing campaigns. It can also assist with creating an omnimarketing experience. As stated in my previous blog Omnichannel Marketing in the Beauty Industry | Why should your beauty brand implement omnichannel marketing? An omnichannel experience provides the same experience for all customers regardless of how or where a customer decides to connect with the company. The experience should be integrated and cohesive. So, whether the customer purchases from the store or online, the shopping experience should feel seamless.

Your audience needs to trust your product and feel it will work for them. If there is an industry that should have an influencer campaign, it is the beauty industry. Hair and make-up tutorials are some of the most viewed content on YouTube, Instagram, and TikTok. Product reviews from relatable people in the nano and micro-influencer categories would be great because you can diversify your social media collaborations. Consider moving some content to TikTok, but do not let go of Instagram just yet!

Have you considered creating an influencer marketing campaign? Leave a comment and let me know your experience. If you haven’t, leave a comment and tell me what you’re waiting for.

References

Atkinson, E. (2022, January 26). Infographic: 5 influencer marketing trends to watch in 2022. PR Daily. https://www.prdaily.com/infographic-5-influencer-marketing-trends-to-watch-in-2022/

Croagh, L. (2022, January 31). The state of influencer marketing: HypeAuditor’s 2022 report. Marketing Magazine. https://www.marketingmag.com.au/news-c/the-state-of-influencer-marketing-hypeauditors-2022-report/

Do you really know your customers? | The First Step to Creating an Effective Marketing Strategy

Do you know who your customers really are? Or hoping your customers are who you want them to be? When creating a marketing plan, it is typical to have an idea of who you want your target market to be but are they really the market for your brand. Have you researched your competition thoroughly? Have you read articles and blogs that are relevant to the industry? What social channels and social listening tools have you utilized? Understanding your customer will take thorough research and not just an assumption or fantasy of who you want your customers to be.

Let’s see how you can create effective buyer/customer personas

What is a buyer/customer persona?
Researching Tools
Examples of buyer/customer personas

What is a buyer/customer persona?

Time and resources must be used to focus on quality prospects. Too often, companies and entrepreneurs implement marketing strategies that do not relate to the audience. That happens because they do not know who their customers are or unknowingly target the wrong customers. “Buyer personas are semi-fictional representations of your ideal customers based on data and research.” (Vaughan, 2021) Emphasis on data and research.

Researching Tools

There are many ways to research your company’s buyer personas. Some of the resources are free but will take time and effort to obtain relevant and quality data.

The image below demonstrates the various tools to help understand who your customers are, where they are, and what they are talking about.

Examples of Buyer/Customer Personas:

Conclusion

Buyer personas are not just guesses; they require data and research. Utilizing Google Analytics, social media, email automation, and online survey software such as Survey Monkey can assist with carrying out buyer persona research. However, be sure to start with available tools and use multiple platforms and channels to create an effective marketing strategy.

What tools and resources do you use to create your company’s buyer/customer personas? Have the strategies implemented been successful? Join the conversation by leaving a comment below! Also, be sure to connect with me on LinkedIn and Twitter.

References

FlowState Branding. (2018, September 26). Simple tools you can use to define your buyer personas. FlowState. https://flowstatebranding.com/insight/simple-tools-you-can-use-to-define-your-buyer-personas/

Vaughan, P. (2021, January 18). How to create detailed buyer personas for your business [Free persona template]. HubSpot Blog | Marketing, Sales, Agency, and Customer Success Content. https://blog.hubspot.com/marketing/buyer-persona-research

Building Hyper-loyal Customers for your Beauty Brand

Many beauty brands have utilized cashback, points, tiered, and premium loyal programs over the years. But is it enough? As technology evolves, people evolve, including their needs and wants. What drove a customer to purchase a product five years ago may not be the same today. So how do we keep customers coming back? The beauty industry is forever changing because there is always a new trend on the rise. So how do we make our customers feel important? How do we better engage with them? These are all questions brands should ask themselves when working on implementing strategies for customer retention.

Vouge Business recently published a blog named How beauty brands can cultivate hyper-loyal customers. It speaks on how beauty brands have implemented innovative hyper-loyalty schemes to strengthen customer loyalty. Hyper-loyalty creates a customer-centric environment essential when using omnichannel marketing as discussed in my previous blog, Why should your beauty brand implement omnichannel marketing? Vouge states that loyalty cards are typical and ordinary and are no longer sufficient.

“Loyalty goes beyond discounting.” (Morosini, 2021)

Companies such as Ulta and Sephora have developed hyper-loyal customers by implementing loyalty schemes that benefit the company and the customer.

Here are some hyper-loyalty schemes beauty brands are using to increase customer retention and loyalty:

Offer fractional shares as a thank you for shopping with their brand
Shoppers gain fractions of Bitcoin when they shop
Tiered Loyalty Programs
Partner with influencers to create co-branded collections

Deciding on a strategy will depend on your brand and target audience. Taking the time to find out who your customers are and what they want will be crucial to hyper-loyalty. Organizations should ensure they are rewarding their customers in more ways than one. Offering a discount after receiving so many points from purchases is no longer enough. Customers are engaging on social media and should be rewarded somehow for their contribution. When thinking of strategies, think of all the ways your customers help you and then think about how your company can help them.

What loyalty programs have your brand implemented? Has it increased customer retention, or do you believe it’s time to re-strategize?

References

Bumped. (2022). Case study: Rewarding customers in Ulta beauty stock, up-levels their loyalty and steals 25% of beauty market share from competitors. https://bumped.com/blog/case-study-rewarding-customers-in-ulta-beauty-stock-up-levels-their-loyalty/

Morosini, D. (2021, August 23). How beauty brands can cultivate hyper-loyal customers. Vogue Business. https://www.voguebusiness.com/beauty/how-beauty-brands-can-cultivate-hyper-loyal-customers

Why should your beauty brand implement omnichannel marketing?

The dependence on shopping at a brick and mortar is no more mainly due to technological advances such as online stores and marketplaces. Let’s also give an honorary mention to the Covid-19 pandemic for increasing online shopping. As our lives become more integrated, whether you are purchasing a car, clothes, hair, or cosmetics, the way we connect and purchase with brands has changed and will continue to. Some beauty brands have taken note of these changes and have adjusted their strategies, and others are just now getting on board or lagging. Listed below is what this blog will explain.

What is omnichannel marketing?
Beauty brands that have benefited from implementing an omnichannel strategy.
Why should your beauty brand implement omnichannel marketing?

What is Omnichannel Marketing?

First things first, what is omnichannel marketing? “Omni-channel, also spelled omnichannel, is a lead nurturing and user engagement approach in which a company gives access to their products, offers, and support services to customers or prospects on all channels, platforms, and devices.” (Fontanella, 2021)

An omnichannel experience provides the same experience for all customers regardless of how or where a customer decides to connect with the company. The experience should be integrated and cohesive. So, whether the customer purchases from the store or online, the shopping experience should feel seamless.

Omnichannel vs. Multi-channel

Sometimes people identify these strategies interchangeably, but it is essential to know the differences between omnichannel and multi-channel marketing.

Omnichannel marketing uses customer-centric strategies, ensuring the brand’s messages adapt to the customer’s needs and the methods they choose to communicate with.
Multi-channel marketing focuses on using multiple channels to communicate with customers, but not necessarily in a cohesive manner.

Beauty brands that have benefited from implementing an omnichannel strategy.

How brands market their products and/or services has changed drastically over the last decade. With the rapid technological advances, changes will continue to be most prevalent digitally. A few beauty brands have updated their strategies using a customer-centric approach. However, keep in mind omnichannel marketing does not look the same for every company.

Ulta – Provides artificial intelligence (AI), augmented reality (AR), online booking, and a cohesive digital experience.
Sephora – Provides a superior customer experience since merging their brick and mortars with digital technology. Also, launched the Beauty Bag, which informed and recommended products based on searches and implemented AR software to allow customers to try on the product using technology.
Glossier – Utilizes user-generated content. “For beauty consumers, being able to see the desired product applied to ‘real people’ can lead to an instant purchase decision for one specific product.” (Coleman, 2021) Featuring their customers on their website increased sales. People who read Into the Gloss are 40% more likely to purchase products than people who only visit Glossier, building a better connection for the blog readers to make sure they became Glossier clients through the website.

Why should your beauty brand implement omnichannel marketing?

Placing the customer at the business center is more important now than ever. Technology has had its pros, but there have been some cons. Although many channels allow us to be connected even when we are not physically present, it does not take the place of human contact. Therefore, companies must implement strategies to make the customer feel like they are receiving the same experience, whether they are walking into a store or clicking online.

Beauty brands used to rely on consultations where the customer would have to come into the store or salon to have their skin or hair examined for the consulter to recommend a product or service. Of course, those days are far and few, but it should still be an option and not eliminated because of AR to create a seamless customer experience.

Conclusion

Companies should be aware that every channel does not benefit every company, and it is imperative to research and analyze data to find out what channels work best. There are also many ways to create an omnichannel experience, so be mindful to utilize strategies beneficial to your industry. Making customers the primary focus is vital because there is no business to run without them. So, make sure you are providing them with an exceptional experience. You will earn their loyalty because they will trust that your company will deliver what they need no matter the channel or method they choose to communicate.

Are you considering or have already implemented omnichannel or multi-channel marketing efforts for your hair, cosmetic, or beauty brand? What technologies do you plan to use or are already using to manage these marketing strategies? Be sure to leave a comment and share your expertise or curiosity.

References

Coleman, A. (2021, March 18). Digital marketing for the beauty industry: Top 5 trends. VERB Brands. https://verbbrands.com/news/thoughts/top-5-digital-markeing-trends-in-the-beauty-industry/

Fontanella, C. (2021, November 23). What is omni-channel? 20 top omni-channel experience examples. HubSpot Blog | Marketing, Sales, Agency, and Customer Success Content. Retrieved January 20, 2022, from https://blog.hubspot.com/service/omni-channel-experience

Sung, J. (2021, January 27). Awesome Omnichannel marketing examples for beauty brands. LinkedIn. https://www.linkedin.com/pulse/awesome-omnichannel-marketing-examples-beauty-brands-jay-sung/