In today’s digital world, personalization has become a powerful tool to offer as an experience that goes beyond just the physical product. By personalizing the shopping experience, a brand is more likely to have a long-lasting relationship with its customers. 3 out of 4 shoppers want a more personalized customer experience. 91% of shoppers would even go on to abandon an online retailer over a poor shopping experience.
Well, no brand wants to showcase products that won’t meet their customers’ expectations. It’s neither effective for the customer, nor the brand. It’s the reason why personalization is being implemented across all industries, especially eCommerce, and more specifically, beauty and cosmetics.
Beauty brands are using personalization to reduce the effect of choice paralysis. Players that can successfully address the preferences and needs of their customers will be the ones to buck a trend of declining sales to achieve long-term success.
Importance of personalization in the beauty and cosmetics industry
The last couple of years has seen more and more customers migrate to shopping online. 84% of eCommerce leaders believe that customers will continue shopping online this year. The onus is thus on eCommerce brands to deliver delightful shopping experiences and the best way is by personalizing the customer experience.
7 in 10 retailers who invested in personalizing CX have seen an ROI of at least 4X. On average, personalization boosts conversion rates by 45% for eCommerce brands. Previously, most retailers had cart abandonment rates of 60% or more, but after personalization, the average rate for all retailers reduces to 46%. Personalization can help accelerate business growth, drive higher customer engagement, better customer retention, and create better lifetime value for customers.
Here are some interesting personalization tactics used by prominent online cosmetics brands that you should use to scale your business
1. Welcome new visitors with a relevant offer
91% of customers are more likely to shop with brands that provide relevant offers. This is a great way to boost sales since this will further encourage customers into purchasing products they were planning to buy.
Nars Cosmetics offers personalized deals and coupons to first-time visitors. This also acts as the building block of their personalization strategy since they collect data from new subscribers. With customer data in hand, brands can engage with customers by sending personalized recommendations, offers, and discounts in the form of emails.
2. Introduce “Trending Products” widget to show what others are buying
Stay on top of the latest trends and show your customers the products that are most in-demand in the market. This widget, often found on the home page, displays a unique collection of popular items that appeal to each customers’ interests and tastes.
Revlon’s ‘Trending product’ widget gives the customers an idea of the best-selling products at that moment and generates interest in those products.
3. Show what’s new with the “New Arrivals” widget
The new arrivals widget will help your customers get a sneak peek of the latest products in one place.
Sephora has placed new arrivals widget on their homepage because 85% of customers get influenced by personalized homepage recommendations.
This widget can be placed on any other page where you want to increase the awareness and visibility of your new products.
4. Create an amazing product display page for all your products
The product display page is where the magic happens. The first thing that draws customers to a product is its look and feel, so you need to design it in the most beautiful way possible, just like Estee Lauder has done here. An effective product page design can make or break an online store. A highly optimized product display page can have a profound impact on conversion rates.
Check out how Netcore Cloud helped The Body Shop achieve a 13.2% uplift in online revenue by implementing personalized product recommendation widgets on its product display page.
5. Display best selling products on your website
The best products often get buried in a sea of options. By displaying the most popular products on the homepage, Sephora is making it helpful for the users who are visiting their website the first time. It attracts them to buy the product from their online store.
This is one of the best practices you should adopt in the e-commerce business.
6. Create new sales opportunities with season-based offers
Urban Decay knows it is the best time to showcase their seasonal products whenever any occasion, festival, or holiday comes around. Create a seasonal marketing initiative for each one of them to show customers that you care about them during special occasions. Offer discounts, run social media contests, and much more to spread the word about your brand.
You can promote certain products that are in demand during a particular time of the year.
7. Recommend the best products based on a customer’s previous behavior
‘Recommended for you’ widget is a simple yet powerful tactic to show your customers products that are most likely to interest them. Understanding your customers’ likes, interests, affinities, browsing history, and purchasing habits will enable you to recommend products they are most likely to purchase. Customers are more likely to click and check out products if they have been personally recommended for them.
Nars use this strategy in a very efficient way to increase the conversion rate of their online store.
8. Help customers locate the recently-viewed products easily
Customers get lost when there are tons of products on display. A customer generally clicks on a product since it seemed to be interesting. Most customers visiting an online store will view between 5 to 10 products before they make their final buying decision. Personalization helps 75% of retailers achieve at least 10 page views per user.
When thousands of products are displayed on the site, it becomes difficult for the customers to keep track of the products they had previously viewed. Numerous times customers also drop-off without completing the purchase.
Chanel makes it very easy for their customers to locate those products by adding the ‘Recently Viewed’ widget. Customers can easily find the products they had previously viewed without having to go through all the previous pages.
9. Suggest complementary products to increase cross selling
Cross-selling is a clever way to increase sales by suggesting a complementary product, and as a result, raising the average order value per active session. 60% of retailers are seeing average order value jump by over 10% post personalization.
MAC does exactly this by offering additional products that may be relevant, complementary, and attractive for the shoppers.
Imagine you are browsing through a website and you’re looking for red lipstick. As you are browsing through the brand new collection, a widget pops up on your screen with a suggestion: ‘Your red lipstick works well with black eyeliner! Bestseller’. How cool is that? The options are limitless.
10. Grow your business with up-selling
Upselling is the practice of offering a consumer a more profitable or luxurious version of a product they are viewing or thinking of purchasing. By understanding the psychology of customers and learning the best ways to upsell, brands can make the most of this strategy and increase the average order value and revenue per user.
It is important to up-sell in a very subtle manner. Maybelline does this by showcasing the value and benefits that similar products can offer by recommending higher-end versions of the product.
11. Grab customers’ attention with exit-intent popups
An exit-intent popup is one of the best ways to ensure a customer doesn’t drop off and stays on your website. If a user has been inactive for a while, it’s likely that the next step might be to exit the website. On occasions such as these, they can be re-targeted with a pop-up message to encourage them to continue browsing. By making them comfortable with the pop-up and giving them reasons to stay on the page, you’re reducing the bounce rate and increasing the conversion rate of your website.
To make it even better and get the best results, properly segment your audience. Sending the right message to the right people is bound to generate great results!
Check out how Netcore Cloud’s exit-intent pop-ups helped The Body Shop reduce bounce rates significantly.
12. Re-engage with your customers across multiple channels
- Web Push Notifications to remind customers that they have products waiting in the cart
There are numerous occasions when customers add products to the cart but exit without checking out and purchasing. 63% of retailers could not bring cart abandonment rates below 60% before personalization.
However, there is a way to reduce the number of such abandoned carts. Web push notifications can be sent to remind customers that they have items in their carts that need to be checked out. Personalization has helped brands reduce the cart abandonment rate to less than 46%.
- Make your customers come back with personalized cart abandonment emails
Leverage the power of email to convert your lost transactions and win back those potential customers who left without checking out. Send personalized emails to your website visitors that abandoned their carts and encourage them to complete their checkout.
Personalized emails deliver 6X higher transaction rates than non-personalized emails.
13. Reactivate dormant customers to encourage re-purchase
Here’s a really important tip for every business: attract and retain your customers. If a customer has already shown interest in your products and services, there’s no reason for you to let them go. If they haven’t been around for a while, use targeted personalization campaigns to remind them about your products and services.
As long as you are providing customers what they need, they’ll keep coming back. If not, give them an incentive to return back and shop on your website. Offering coupons and discounts are a good way to re-engage with dormant customers. Showing personalized product recommendations based on their previous browsing history will also grab eyeballs.
Check out how Netcore Cloud helped Qtrove retarget their customers with a personalized “We Miss You” email campaign to nudge them to transact again with 1:1 relevant product recommendations.
14. Offer relevant and fast product-search experience
Olay’s personalized search results are more accurate and relevant to the specific customer, helping them quickly find the products they are looking for. When a user searches for “moisturizer”, it provides results of only moisturizer products and not any other product.
71% of eCommerce shoppers use the search bar frequently and 48% of eCommerce brands are offering personalized search results to deliver a delightful shopping experience.
Don’t fall behind your competitors. Personalized search recommendations are a must-have in today’s world.
15. Elevate customer experience through Virtual Reality
Virtual Reality is a new immersive form of storytelling that takes you inside the story. It allows you to experience anything, anywhere, at any time. While the world is still figuring out the implications of virtual reality, brands like MAC are rushing to jump in and figure out the medium. 34% of brands are planning to focus on virtual reality in the coming years.
Today’s customers want to have an interactive experience. With the help of virtual reality, customers can experience a digital version of their favorite beauty products.
Personalization: The new competitive edge
The beauty industry is growing year after year with more and more brands and products entering the market. The challenge for brands is to stand out from the competition and grow their business. Hence, to stand out in this competitive market, it is important to personalize the user experience.
Personalization is one such feature that can help online cosmetics brands to grow, engage and retain their customer base effectively. It will help increase the number of returning customers and increase the conversion that results in an increase in overall revenue.
To understand how we can help your brand develop and deploy a winning AI-powered personalization strategy, get in touch with us today!