How Beauty Retailers Deepen Customer Connections with AI, Data, & Personalization

The rise of AI has created a new era for the beauty industry. AI algorithms and machine learning make collecting and analyzing customer data easier and faster—uncovering unique customer insights and curating a more personalized shopping experience. 

In this article, we'll explore five ways the convergence of data, AI and personalization is reshaping how beauty brands build connections with customers. 

1. Personalized Beauty Routines

Today, it's not enough for beauty brands to suggest one-off personalized beauty products. Instead, retailers must provide shoppers with customized beauty routines. 

With AI, beauty retailers process extensive customer data, including skin type, concerns, preferences, goals, purchasing history and past shopping behavior. These algorithms can also consider external factors—such as climate, lifestyle and beauty trends. Brands can leverage this data to create customized beauty routines that proactively meet customers' needs. 

For example, CurlSmith uses its Curly Quiz to collect first-party data and recommend personalized haircare routines. Shoppers answer questions about their hair type, ingredient preferences and concerns. The quiz generates a four-step routine based on individualized haircare needs. 

CurlSmith’s haircare quiz provides customers with a four-step haircare routine.

2. Customizable Products

According to recent research by Bolt and YouGov, 62% of shoppers are more likely to buy a product they can formulate themselves. This sentiment is even higher among younger consumers, with 80% of Gen Zers expressing an interest in participating in the product development process.

As a result, brands are leveraging data and technology to give consumers more control over their beauty regimens. These services make customers feel valued and produce more positive results—increasing customer loyalty and retention. 

Here are some examples of beauty brands engaging consumers in product development. 

• Curology: Shoppers start by taking a skin quiz. Curology then connects customers with a licensed dermatologist to personalize their formulas and treatment plans. The skincare brand provides tools to help customers track the improvement of their skin. 
• Neutrogena: The hair and skincare company recently introduced Skin 360 SkinStacks. Customers complete Neutrogena's Skin360 digital scan and provide information about their skin needs and goals. The company will use this data to create custom supplements and topical beauty products.
• SkinSei: Customers start by using SkinSei's facial skin test kit to analyze different aspects of their complexion. After uploading results to Skinsei.com, customers receive an in-depth analysis—including a list of the best ingredients for their skin type.

3. Personalized Shopping Experiences

With data and AI, beauty retailers personalize every stage of the customer journey—from product discovery to post-purchase.

AI-powered software can create customized online interfaces based on customer profiles, browsing behavior and purchase history. This ensures that customers see relevant products, promotions and content to create a more engaging online shopping experience. Brands can also use augmented and virtual reality tools to provide more personalized skincare and makeup recommendations. 

Sephora creates custom interfaces for customers with product recommendations, gift guides and loyalty program perks.

In stores, brands leverage smart mirrors and interactive displays to provide personalized product recommendations and shade matching. For example, beauty and hair manufacturer Takara Belmont will launch an AI-powered smart mirror next year. Hair stylists can use the mirror to help clients choose the best hairstyle and color.

A preview of Takara Belmont’s new smart mirror called Ecila.

4. Improved Clienteling

Data analytics and AI-powered tools empower beauty advisors to provide more personalized customer service. Whether customers are shopping online or in-store, beauty advisors have instant access to detailed customer profiles. AI-powered product recommendation engines also help associates identify opportunities for upselling and cross-selling.

AI-powered software also detects customer sentiment—suggesting responses to increase customer satisfaction. At the same time, beauty brands can leverage AI to streamline the follow-up process. Beauty advisors can use these tools to send personalized emails or messages after a consultation or purchase. 

5. Hyper-Personalized Loyalty Programs

Loyalty programs are experiencing a revolution. A survey by Antavo found that 78.6% of companies are likely to revamp their loyalty programs in the next three years. Over 55% of retailers view loyalty programs as essential to combating inflation and economic uncertainty. 

By leveraging data and AI, beauty brands are creating hyper-personalized loyalty programs. These initiatives use customer preferences, shopping behaviors and past purchases to offer tailored rewards. 

For example, hair color brand Madison Reed recently announced its Limitless Membership Series. Customers can choose from four tiers based on their use of products and services (e.g., how often they need to use products and whether they use color kits at home or visit the company's Color Bars). 

Similarly, Sephora uses its loyalty program to send personalized content. When a Beauty Insider member makes a purchase, they receive an email letting them know their membership status and offering customized product recommendations.

Sephora uses personalized post-purchase emails to encourage customers to redeem their loyalty points. 

Increase Customer Connection with Salesfloor

The fusion of AI, data and personalization enables beauty brands to foster deeper connections with customers. But, optimizing processes and services requires the right technology. That's where Salesfloor comes in. 

Salesfloor is an all-in-one customer engagement platform. Our platform unifies virtual shopping and AI-assisted selling to create more personalized beauty shopping experiences. And with AI-powered clienteling tools, beauty advisors can build more meaningful connections with customers. 

Request a demo today to see how Salesfloor is revolutionizing the beauty shopping experience.