Success Stories
Luxury Beauty Brand Achieves More Than 44% Increase of Conversion With IQONIC.AI Skin Analysis
"For us it is an investment to secure the business of the future."
– Chief Marketing Officer
Starting Point: An Innovative Refresh for an Established Brand
Our client is a beauty company that has been established for over 30 years with luxurious beauty products and a medical focus. The brand has made a name for itself all over the world. To improve customer loyalty and reduce acquisition costs, the brand implemented IQONIC.AI's skin analysis in their online shops. By optimizing the customer journey, targeted data enrichment and the use of personalized recommendations, shopping basket conversions were significantly increased. All the desired goals were successfully achieved, significantly improving both efficiency and customer satisfaction.
The Solution: A Fully Integrated Customer Journey
The luxury brand selected IQONIC.AI as their exclusive partner due to its ability to meet all their needs, including global applicability, derma-grade technology, exceptional accuracy, data-driven customer relationship management, extensive customization options, and strict GDPR compliance across all markets.. The collaboration includes the following components:
Fully customized AI skin analysis integrated into their online stores in three markets (GER, UK, US)
Newsletter integration as the starting point of a personalized customer journey
Personalized routine/product suggestions for the customers based on their results
Monthly reporting and GDPR compliant sharing of all user data to enrich CRM
Advantages
The cooperation led to outstanding results:
Increased Going-Through-Rate: During the analyzed period, the Going-Through-Rate rate in the funnel increased up to 80%. The change is significant.
Increased Lead Conversion: The email subscription rate increased significantly by 44.97% during the period up to 92.31%. Numerous website visitors were successfully converted into the CRM. On most websites, the average email subscription rate is around 4%, meaning the increase within the funnel is more than 11 times higher than the typical subscription rate.
Higher Conversion Rates: The conversion rate to the shopping cart increased by 25.65% over just twelve months up to 27.13%. In comparison, Instagram Ads typically have a conversion rate around 1%. This means the conversion rate in the funnel is up to 25 times higher than the typical conversion rate for Instagram Ads.
CRM Experience
There is a large interest in trying out the scan. With more than 50% of website visitors using the skin scan, we have a wealth of data to work with and further optimize our offering.
The creation of data-enriched user profiles from this data enables a personalized customer journey. This reduces acquisition costs, as website visitors who have used the scan can be targeted again, even if they have not made a purchase. The investment in the analysis tool has amortised itself for our client.
Monthly reporting enables precise and timely monitoring of changes within the target group. Every adjustment to the target group and their habits, needs and wishes are visible in the tracking at short notice, so that the reaction to products and the scanning experience can be quickly identified. Thanks to the flexibility of IQONIC.AI, adjustments to the funnel can be made quickly and efficiently.
When designing the scan and analyzing the data, it plays a central role whether the client and their customers place more value on an affordable variety of products or focus on a few but more price-intensive products. In this case, a smaller product range is purposely recommended at the end of the scan, as our brand partner's strategy emphasizes price-intensive products.
Successful Multi-Market Localisation
The luxury brand client had already successfully expanded its product range into international markets. In addition to the German shop, the AI analysis is currently also offered in two other shops: US and UK. A greater affinity for technology and openness to new digital innovations is having a positive impact on conversion rates, which emphasizes the relevance of expanding into international markets.
This is also reflected in a direct comparison of the data from all three shops: the click behavior and reaction to call-to-actions are very different. We observe that US users are the most active clickers. Depending on the region, the funnel can be adapted to actively exploit advantages such as active click behavior, or to provoke it more strongly in less interactive regions.
Conclusion
This collaboration is one of our best-case customer examples and emphasizes the benefits of our solutions. “We believe in innovation and we believe it takes us further. At the end of the day, we have managed to provide better advice to our consumers”, says the client’s CMO about our cooperationThis case study shows that the use of innovative AI technologies and the service behind them is a critical success factor for beauty brands in the digital age.
About IQONIC.AI
IQONIC.AI provides white label AI software solutions for beauty brands and retailers. They use the software to digitally analyze the skin and hair of their customers in the store or online. Based on the results, the customer receives personalized product or routine recommendations. These tailored recommendations significantly increase the likelihood of purchase, converting casual browsers into loyal customers and increasing conversion rates. Personalized recommendations drive larger purchases and increasing revenue. All solutions are derma-grade, highly accurate, GDPR compliant, fully customized to the client's individual needs, requirements and target audiences, and can be easily integrated into any platform.