One of the best ways to reach more customers, increase their engagement, and foster loyalty, is to empower customers with ways of finding the best solutions. People prefer to feel in control over their personal care. But how can you involve customers in a way that gives them options while directing them to your store?
One way is to understand how, when, and where they shop. Another is to address their specific pain points through your marketing and messaging efforts. Learn how to capture and keep consumer’s attention this holiday season with these tips.
Holiday Outlook for Lifestyle & Beauty Brands
McKinsey & Company says, “The global beauty industry generates $500 billion in sales a year and accounts for millions of jobs, directly and indirectly.” Yet, many lifestyle brands struggled in 2020.
According to the Global Cosmetic Industry, “Luxury retailers lost 18% in sales, prestige retailers experienced 5% sales drops, and mass merchant beauty sales rose 1%” in 2020.
However, eCommerce sales skyrocketed. The NPD Group finds that online U.S. prestige sales increased by 46%. Likewise, Statista reports, “In 2020, personal care retail sales in the United States generated $32 billion in e-commerce revenue.” It accounted for nearly “7.4% of total retail e-commerce sales.”
Top market gains came from several categories, including fragrance candles, nail care, hair treatments and masks, and body creams. For 2021, KPMG expects eCommerce to grow 35% this year, with overall sales growth climbing 7% higher than last year, higher than annual historical growth of 3% to 4%.
Expect Increased Competition From Online Retailers
Standing apart from the competition isn’t easy in a sea full of beauty brands and seasoned online retailers. And in many cases, Amazon is a top competitor, accounting for 44.3% of total online health and beauty sales in the U.S.
This year, Amazon will dedicate three weeks to its beauty sales event, “Holiday Beauty Haul.” It starts October 4th and will showcase various products and categories, including winter skincare and fragrance.
While it’s difficult to compete directly with Amazon, you can identify what draws consumers to the site. The platform is easy to use, offers personalized recommendations, and is convenient. By analyzing the user experience on your website and smoothing any areas of friction, you can compete.
Likewise, the right mix of promotions and clear communications about shipping and pick-up options, along with your brand’s personal touch, can draw consumers in.
Address Popular Beauty Trends In-Store & Online
Even if your customers are back to in-store shopping, don’t back off your omnichannel approach. Tackle your audience’s challenges online and in person.
A Digital Commerce 360 and Bizrate Insights survey shows that 46% of consumers want “to see beauty products in person, and 18% are looking for advice from an in-store expert.” Combining no-touch experiences through artificial intelligence (AI) and augmented reality (AR) lets your clients participate in physical events that match their safety comfort level.
But, they also turn to social media to get their questions answered. Live streaming events online is one way to introduce products while engaging with your customers. Consumers can ask questions and request recommendations in the comments. And if they still have concerns, it’s easy to sign up for a virtual or in-store consultation.
Infuse holiday cheer into the latest beauty and lifestyle trends, such as:
- Premium beauty: Arouse your customers’ senses by delivering an experience at every touchpoint. Add a touch of mystery to your promotions and obsess over every detail, from branded images to in-store displays.
- Simplicity: Thanks to remote work, many people have simplified their daily routines. Forget the 10-step nightly rituals. Instead, draw attention to bundled products that fit into existing habits.
- Indie beauty: Increasingly, consumers want to spend their money purposely. And in many cases, supporting a small business enables them to feel good on the inside and outside. Put a spotlight on independent companies with unique displays online and in-store.
- Specialized hair care: Personalize experiences for your customers by avoiding a one-size-fits-all approach. Pull in consultants who understand the pain points of individual clients and ask them to share stories about their own failures and successes.
- Clean beauty: Appeal to consumers wanting earth-friendly and human-centric products by leaving the mystery for premium beauty products. Instead, prioritize honesty and authenticity. Make sure every customer-facing employee can answer questions about brand practices and methods.
Invest in Video Marketing and Social Media
Although shoppers are back in stores, they still want immersive online experiences, and social media is one of the first places they turn to. YouTube, Instagram, and TikTok are key platforms to captivate your audience.
Moreover, even small brands have a chance to stand out online. In fact, Digital Surgeons says, “Individual vloggers control a stunning 97% of all beauty topic videos.” In contrast, big beauty brands only garner “3% of total views.”
Concentrate on video marketing using:
- Tutorials that show fans how to use products on different skin types and for various issues
- Insert testimonials from customers that explain how a product made them feel
- Encourage your audience to share unboxing videos and highlight them on your social pages
- Sneak peek video snippets of upcoming holiday promotions to pique interest and drive traffic to your website
Provide Savvy Shopping Tools
Consumers are worried about short supplies of their favorite beauty products, and many have recently been burnt by longer-than-expected shipping times. As a result, those unfamiliar with your brand may need reassurance.
Providing website and social media chatbots are one way to stay on top of their needs. It should be able to handle basic questions about your delivery and pick-up services while pointing them to written resources for further guidance.
In addition, a Digital Commerce 360 survey finds customers use a variety of shopping tools:
- 22% use color-match tools
- 15% have tried virtual try-on apps
- 6% use augmented or virtual reality tools
Likewise, 65.5% of cosmetic retailers provide interactive quizzes to help match customers with products. A gift quiz is easy to set up and can be shared on your website and social channels.
Use Promotions to Drive Brand Awareness
According to KPMG, retailers will spend “35% of their overall marketing budget during the six-week holiday period from Thanksgiving to the New Year, with 42% being spent on digital campaigns.”
Additionally, 68% “believe this year will be either “much more” or “somewhat more” promotional (beyond price promotions) than last year.” Consequently, 90% will participate in Black Friday events, 85% will host Cyber Monday or Cyber week campaigns, and 55% will hold events for loyal customers.
But, like Amazon’s October event, it’s vital to start early and use a mix of marketing campaigns as a way to bring people back during the holidays.
Popular ideas to kick-off holiday sales include:
- Fall skincare giveaways that help clients ease into a new season
- Sneak peeks at winter products and the good things to come
- Personalized buyer gift guides with customer testimonials
- Email marketing campaigns designed for loyal customers
Deliver Comfort & Joy This Holiday Season
You already know what you’re up against when it comes to big-box retailers with unlimited marketing budgets. But the right promotions and tools help level the playing field. Moreover, they help you deliver a personal touch online and in-store. Help your customers choose the best gifts for themselves and others using effective video campaigns, giveaways, and more.
Need help designing interactive shopping experiences?
Want to add a promo code to your email or host a giveaway on Instagram? Our team can help. Contact the Woobox team from 9 am to 5 pm PST, Monday through Friday at 1-360-450-5200 and via support@woobox.com.