Unlocking the Consumer Journey: Insights and Predictions for Beauty Brands

As the consumer journey grows more complex and layered, beauty brands and retailers are racing to find exceptional digital brand experiences to stay connected with their customers. The following explores hard data findings and insights into the consumer journey, trend predictions, and how beauty brands and retailers can navigate the “New Digital Renaissance.”

Understanding the Consumer of 2023

Consumers face inhibiting decision-making and product purchases. Not to mention, the average attention span of consumers has fallen from twelve seconds in 2000 to 8 seconds in 2022 (Microsoft). Brands are better understanding how to engage these consumers. For the beauty industry, personalization is critical.

Discovering a Path to Value

Consumers pursue their desires in beauty, searching for knowledge, advice, self-expression, entertainment, social contribution, and connection. By reviewing data and insights, brands and retailers can fulfill these gaps. Integrating technology like artificial intelligence and augmented reality into social commerce allows beauty brands and retailers to cater to individual needs and create real, lasting engagement.

A New Digital Realm: Leveraging Technology and Data

Consumers require more time to make purchases: first to find the right products and second to practice comparative shopping. 45% of U.S. shoppers are still engaged in product comparisons to make their purchase decisions (National Retail Federation). Understanding consumer behavior is essential to outperforming competitors. Companies that leverage customer behavioral insights outperform peers by 85% in sales growth (McKinsey).
 
This reality creates opportunities for brands and retailers to improve the consumer journey. Utilizing consumer segmentation leads to precise targeting, higher retention and more acquisition. The aggregated usage data of Revieve’s solutions from a selection of our clients has shown a 67% increase in onsite conversion and a 2.4 increase in revenue per user. Collecting zero- and first-party data can enable brands to improve their retargeting and customer communications strategy, creating personalized conversations with every consumer. And lastly, leveraging digital technology can help improve the results in customer retention, product referrals, and return rates. Revieve’s client, SKIN FIRST, utilizes the AI Skincare Advisor experience, and has noted that 34% of users return after completing the digital experience.
 
Knowing consumer needs and demands via precise data, along with navigating the layered complexities of the consumer journeys will help brands craft effective personalization and hopefully result in an auspicious year.
 
About the Author
Sampo Parkkinen is CEO & Founder, Revieve, a technology company delivering consumer-centric personalized digital brand experiences powered by AI/AR.
 
Also read Parkkinen’s previous article for Beauty Packaging: “Trends That Will Drive the Beauty Industry Forward in 2023”