Differentiate the Beauty Customer Experience To Build Lasting Loyalty

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Customer Experience (CX) Is a Vital Component of Building Lasting Brand Loyalty in Competitive Online Retail Landscapes

The beauty industry has been rocked by a foundational change in recent years. The internet and mobile shopping have brought new challenges and opportunities, while consumers are exercising their growing power and voice online to demand that brands prioritize sustainability, wellness, and diversity.

This rapidly-changing landscape has seen the rise of upstart brands and new business models that are breathing new life into the industry. While the $49 billion US market remains relatively flat, online sales are strong, with year over year sales increasing by 18.6% in 2019 — the second-highest growth rate after food and drink, according to eMarketer, which found that online transactions now account for 1 in 10 beauty sales.

This surging activity is attracting interest and investment from new players, including online giant, Amazon, which has expanded its beauty offerings to include a private label product line and an “indie” brand shop featuring finds not available through other retailers. Amazon now rivals physical retailers Ulta and Sephora, with 1 in 5 consumers consistently saying it’s their favorite place to shop for beauty products.

Even as the giants vie for prime market share, merchants without the online reach of Amazon or thousands of stores can still find plenty of room to compete and they can succeed by focusing on the customer experience.

How beauty brands interact with shoppers as they travel along the path to purchase and into an ongoing customer relationship is more important than ever: consulting firm PwC found shoppers are willing to spend up to 16% more for positive customer experience, and 73% said the customer experience influences purchase decisions, beyond product quality and price.

Not only does focusing on customer service avoid the slippery slope of discounting that can erode margins; thoughtful, proactive service and a unified customer experience help beauty brands meet rising demand for relevance and authenticity. By aligning their customer experience offerings with the ideals shoppers prize, beauty sellers can prove their worth and stake their claim to market share in a volatile landscape.

To deliver customer experiences that stand out from the competition, beauty brands should focus on:

  • One-to-one consultations to develop personalized beauty regimens
  • Reflecting customers’ individual tastes throughout the purchase experience
  • A cyclical approach that incorporates re-engagement and replenishment
  • Embodiment of ideals around environmental awareness and sustainability
  • Transparency and control surrounding order fulfillment processes

If you are interested in learning more about CX Automation and specifically, how Beauty brands can quickly implement an easy to use conversational AI experience as part of their CX strategy, please visit our automated customer care platform to learn more, or  Book a Demo.

Download our complete beauty industry customer experience guide:

Beyond Skin Deep: How the Beauty Customer Experience Can Build Lasting Loyalty



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