Brand Engagement Strategies in Personal Care - Grail Insights

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Brand Engagement Strategies in Personal Care - Grail Insights
Brand Engagement Strategies in
Personal Care
Brand Engagement Strategies in Personal Care - Grail Insights
Across categories, consumers respond to
helpful and personalized brand
                                              What’s in this
experiences that improve their lives. As a
category, Personal Care gets this right.      eBook?
Granted, it’s a product category that lends    How personal care brands are winning
itself to customer trial and is grounded in     customers by delivering experiences
self-improvement. But recently a number         that boost confidence.
of Personal Care brands are using new
technologies that encourage trial and          What new technologies brands are
experimentation, which empower                  using to bridge the gap between trial
consumers to make their own choices.
                                                and purchase, both online and in-store.
There’s a lot that other categories can
                                               Why in-store and retail experiences
learn from confidence-boosting brand
engagements.                                    should help customers be their best.
Brand Engagement Strategies in Personal Care - Grail Insights
Beauty and
Personal Care (BPC)
brands are focusing on
enhancing consumer
experience and engagement
to win consumer confidence
and drive sales.

                  Experience will overtake
                        price and product

                         After having a positive experience with a
   Increases the
                         company, 77% of customers would
   Intrinsic Value of    recommend it to a friend
   the Product

                         When it comes to making a purchase, 64%
   Drives                of people find customer experience more
   Sales                 important than price

                         Companies with best-in-class customer
   Boost                 experience management achieve year-over-
                         year customer profit margin improvement
   Growth                527% higher than their peers, and 359%
                         greater company revenue growth

                                 Brand Engagement Strategies in Personal Care | PAGE 1
Brand Engagement Strategies in Personal Care - Grail Insights
By leveraging augmented reality
                                        and concentrating on consumers’
                                        personalized needs, brands
                                        are enhancing the
                                        customer experience
                                        in-store and online.

     Allowing shoppers to virtually try products before purchase via
                       AR and Artificial Intelligence (AI) technology

        72%
                              of shoppers said
they want the in-store beauty experience to
         be a mixture of physical and digital
    elements, to make it feel more “real” and
      “believable.” The use of AR technology
    solves issues of testers not always being
   available, alleviates hygiene concerns and              AUGMENTED
      prevents shoppers’ lips from becoming                REALITY (AR)
                                      stained
         (A survey of shoppers by Coty, 2018)

                                  Selling tailor-made products according to
                                  customer skin and hair needs
                                  We foresee customized products and
                                  experiences growing rapidly to about 15%
                                  of total sales over the coming years as we
                                  launch some innovative ingredients and
      PERSONALIZED/               consumer experiences. This percentage
       TAILOR MADE                doesn’t sound much but we have grown
        PRODUCTS                  300% annually for the last two years and
                                  growth will remain in triple digits for the
                                  next three years
                                  (Founder of Beauty Kitchen, 2018)

                                            Brand Engagement Strategies in Personal Care | PAGE 2
Brand Engagement Strategies in Personal Care - Grail Insights
New apps and
devices are helping
customers make
informed decisions about
what works for them.

  Hair health analysis and                            SCHWARZKOPF’S
 customized shampoo by                                HAIR ANALYZER &
   the SalonLab Analyzer                              CUSTOMIZER
system from Schwarzkopf

     SHISEIDO’S
    MATCHCO SKIN
   TONER ANALYSER

                                  THE NEUTROGENA
                                    SKINSCANNER

     Create customized
  foundation with pictures
   taken on the MatchCo
        mobile app             Product suggestions based on
                             zoomed-in images captured by a
                             lens tool (12 LED lights and a 30x
                                    magnification lens)

                                  Brand Engagement Strategies in Personal Care | PAGE 3
Brand Engagement Strategies in Personal Care - Grail Insights
Consumers are getting personalized
                                       consultations from brands,
                                       in the form of AI and AR
                                       experiences.

 P&G ORAL B                                AI based personalized dental
   GENIUS X                                care coaching. Real time
                                           feedback guidance to better
                                           brushing and oral health

                                             NEUTROGENA
                                             MASKID – 3D
                                          PRINTED FACEMASK

          PHILIPS AR
          GROOMING

                                         Personalized 3D printed face
                                          mask created by the users
                                          from a smartphone selfie.
Virtually try styles with the AR and     Neutrogena Skin 360 system
facial mapping. AI-enabled facial        analyses the skin needs and
  analysis provides personalised          recommends ingredients
             style advice                     (launching soon)

                                          Brand Engagement Strategies in Personal Care | PAGE 4
Brand Engagement Strategies in Personal Care - Grail Insights
L’Oréal Case Study
Here’s how a leader in the BPC
space is winning customers by
delivering personalized experiences.                       In March 2018, L’Oréal acquired
                                                          ModiFace, an AR beauty company

                                                         Expected to bring additional AR and
                                                         AI tools to its 34 international brands

        Sales in first nine             E-commerce sales
        months of 2018                  growth in 2018

                                     Try-On
                                     Online website that allows shoppers to try different
                                     L’Oréal make-up products virtually

                                  Smart Mirror for
                              In-Store Interaction
           L’Oréal in-store mirror allows shoppers to try
                         make-up looks virtually in-store

              Virtual Try-on Looks
    Platform through which shoppers can
   virtually see the look of various beauty
  products and dyes on their hair through
           a 3D artificial intelligence based
                                   technology

                                                         Brand Engagement Strategies in Personal Care | PAGE 5
Brand Engagement Strategies in Personal Care - Grail Insights
PERSONALIZED SKINCARE
                                 EXPERIENCE

                           L’Oréal Technology incubator
                      partnered with SkinCeuticals to provide
                        a personalized skincare product –
                                  Custom D.O.S.E

                 In person one-to-one consultation with a professional who
                 advises shoppers on the ingredients to suit their skins

            After the assessment by the professional, all the collected
               data is transferred to a D.O.S.E machine that mixes and
                                    dispenses the serum ready for use

                                       Platform through which shoppers can virtually
                                       see the look of various beauty products and
                                       dyes on their hair through a 3D artificial
                                       intelligence based technology

“At L’Oréal, we are poised to leverage technology to respond to the rising wave of
consumer demand for personalized products and services, D.O.S.E acts like a mini
skincare laboratory, combining lab grade formulation and factory grade
manufacturing into a machine that sits on the counter. As we pursue our mission
of beauty for all, we are inspired by the challenge of using technology and design
to create innovative beauty experiences custom made for each consumer.”
      – Guive Balooch, Global Vice President of L’Oréal’s Technology Incubator

                                                  Brand Engagement Strategies in Personal Care | PAGE 6
Brand Engagement Strategies in Personal Care - Grail Insights
PERSONALIZED HAIR COLOR
             EXPERIENCE

       a new brand by L’Oréal, has…

    In person one-to-one consultation with a
      professional who advises shoppers on
         the ingredients to suit their skins

                  Platform through which shoppers can virtually see the
                  look of various beauty products and dyes on their hair
                    through a 3D artificial intelligence based technology

In the UK,   23% of young female consumers are interested in digitally viewing
                 their desired hairstyle/colour before a purchase

                                         - Mintel

                                                     Brand Engagement Strategies in Personal Care | PAGE 7
Brand Engagement Strategies in Personal Care - Grail Insights
In 2018, L’Oréal grew by

               7.1%

                                          Ecommerce accounted for             11%
                                                                   of the total sales

Driven by the success of its La Roche-Posay and
SkinCeuticals brands, the Active Cosmetics Division grew by

9.2%

                            L’Oréal attributed its success to
                            innovation and digital prowess

"Digital is at the center of everything we do at L'Oréal. It's not something which is
'nice to have' but something that is going to profoundly change the way we do
business"

                                                                     Lubomira Rochet,
                                                            L'Oréal Chief Digital Officer

                                                Brand Engagement Strategies in Personal Care | PAGE 8
Need help delivering a needs-based brand
     experience for your customers?

     Contact us at

     hello@grailinsights.com

Sources: Retail Touch Points, 2018 | In-cosmetics , 2018 | Engadget , 2018 | Fortune , 2017 | The Verge , 2018 |
Fashion Network , 2019 | Beauty Packaging , 2018 | Cosmetics Design-Europe , 2018 | Mobile Marketer , 2018 |
The Current Daily , 2018 | Stephenson , 2018 | Allure , 2019 | Forbes , 2019
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