Personalisation: The Competitive Edge in the Beauty Market

After years of experience in the industry, we can say that personalisation is not just a passing trend - it is the key to the future of the beauty industry! For consumers, it means trust and relevance; for businesses, it is a key driver of loyalty and sales. But what does real personalisation look like in the beauty industry and where is it already being successfully implemented?

• Skin and Hair Analysis:

  AI-powered tools allow brands to identify specific skin needs and hair types to make truly appropriate product recommendations, whether onsite or digitally. Using technologies such as machine learning, image processing and big data, companies can accurately identify the specific skin and hair needs of each individual customer. Using smartphone apps or digital platforms, users can take a picture of their face or hair. The AI system analyses the skin or hair data and makes recommendations based on factors such as skin type, moisture, pigmentation, wrinkles or hair type and texture. L'Oréal also uses personalisation, primarily through the implementation of personalised skincare recommendations, resulting in a 25% increase in sales and up to a 30% increase in conversion rates.

  
  

• Customised Marketing Campaigns:

  Brands use customer data to develop customised offers and messages that are perfectly tailored to the needs and interests of their target audience. By analysing rich customer data - such as purchase behaviour, social media interactions or feedback forms - companies can gain deeper insights into the needs and desires of their target audience. This data is used to create targeted, personalised marketing messages that are highly relevant to the individual customer. This can be done through tailored newsletters, individualised ads or even personalised recommendations on websites and in apps. The beauty of this type of campaign is that it does not overwhelm the customer with generic offers, but truly responds to a personalised need. For example, a customer who regularly buys skincare products for sensitive skin could be alerted to new products in a marketing campaign specifically tailored to their needs. SEPHORA saw a significant increase in customer loyalty and sales growth, as well as a 40% increase in conversion rates, after implementing personalised product recommendations in its app and e-commerce channels, according to a study.

  
  

• E-commerce:

  Virtual try-ons and personalised product recommendations create a shopping experience that is as unique as the customer. For example, cosmetics brands' online stores allow customers to try make-up products on their face in real time using digital mirrors. These virtual try-ons are often powered by augmented reality (AR), allowing customers to see how a product, such as lipstick or foundation, will look on their skin without physically trying it on. This feature not only improves the shopping experience, but also has a positive impact on the return rate, as the products fit the customer better and the likelihood of dissatisfaction is reduced. Estée Lauder's introduction of AR to its online and in-store experience helped increase customer loyalty by 25%. One report found that customers who tried AR were twice as likely to purchase a product than those who did not use the technology.

  
  

  The result? Brands that use personalisation successfully see higher customer satisfaction and significant increases in sales. Studies show that personalised offers can increase overall sales by up to 30%. Personalisation in the beauty industry is not just a marketing trend, it is enabling a profound change in customer relationships. We believe that those who focus on personalisation today will create the basis for sustainable success in a highly competitive market.