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Overheard: Loqate Global Beauty Roundtable

Digital transformation has changed the face of the beauty eCommerce industry. At the onset of the pandemic, beauty sales declined as much as 30%. This signaled an era of change for the industry as brands worldwide sought to evolve from their more traditional business models. 

As more customers went online to purchase services and products, beauty brands have made a seismic shift in how they appeal, engage, and connect with their customers.

This month, we hosted our first global beauty roundtable, bringing together some of the most reputable brands in the beauty industry to discuss shifting consumer expectations, digital best practices, and new strategies to increase reach and revenue.

What we learned:

  • When it comes to delivering delightful customer experiences, a balanced approach is key. Brands must get the right mix between delivering amazing experiences and appealing to the customer’s wallet via discount marketing. This has gotten more complex with recent store closures.
  • Fast fulfillment and shipping can be gained through more non-traditional means. Many beauty brands want to know how they can get products to customers quicker. Alternative shippers and rideshare services have been a welcome solution for many. Some vendors mentioned include Postmates, Instacart, FedEx Cross Border, Shoprunner.
  • User-generated content and influencer marketing have been critical to beauty eCommerce success. Influencers/Reviews/Social platforms are useful ways to engage with a broader range of customers. Providing real-life or real-time reviews gives consumers the social proof needed to improve their confidence with any brand. Platforms like TikTok, Clubhouse, Bazaarvoice are all leading to more engagement.
  • What is the future of digital retention & loyalty? Many retailers are using new and innovative digital technology like virtual assistants, live tutorials & virtual events to keep customers engaged.
  • With the holidays arriving, it’s time to start targeting the right offers to the right shoppers. Brands are partnering with vendors like GiftNow & SmartGift—letting consumers send gifts digitally. Creating general awareness around gifting options is vital, especially earlier in the customer journey. Brands are also relying on subscription gifting models to bring in more revenue.
  • If your websites and mobile checkout journeys are not optimized, you risk driving away your customers. For eCommerce, managing customer expectations is critical. This includes providing a fast and easy checkout user experience (UX), simplifying address and billing information entry, minimizing delivery times and errors with address verification.

 Special thanks to our virtual host, retail expert & Forbes.com contributor, Shelley Kohan! Stay tuned for more insights from our “Overheard” blog series.

Are you interested in learning more about Loqate? Contact us today.

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