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Customer experience



21 February 2022

How personalization can help your beauty brand differentiate

Increased demand for personalization 

The surge in digital usage over recent years has laid new, emerging foundations for what customers demand from online brands. With the digital landscape offering consumers greater-than-ever levels of access to products and brands, there is an expectation and a need for businesses to differentiate themselves in order to generate sales and foster loyalty.  

Personalization has emerged as a key avenue for this differentiation, to the extent that 71% of consumers today expect companies to deliver personalized interactions, and 76% become frustrated when this doesn’t happen (McKinsey). This indicates that personalization now goes beyond ensuring the consumer’s name appears at the start of an email – it extends to ads, product development, website design, and even brand positioning.  

Why beauty brands use personalization 

Specifically in the online beauty sector, where growth has resulted in a predicted worth of $358.4 billion by 2026 (Statista), the need to stand out on both a brand and a product level is today greater than ever. 

So, what makes personalization such an effective differentiator in the online beauty space? It’s not the mere fact that it’s ‘something different’; it’s that it allows consumers to make informed decisions grounded in their own preferences and requirements. It ensures the consumer feels recognized as an individual, rather than being characterized by their generation, age group or gender, and empowers them to express their unique character through their purchasing decisions.  

Personalization in beauty can take many forms, from website quizzes reminiscent of noughties Cosmo magazines to help consumers discover which product is right for them, to the ability to engrave a gift for a loved one, to recommendations in marketing emails based on past purchases. Whether leveraging one or multiple means of personalization, beauty brands can create opportunities to connect with and retain customers where competition for their attention is rife.  

The impact of personalization  

For savvy brands that are building personal connections with their consumers through personalization, the results are tangible in boosting the bottom line. According to a recent Boston Consulting Group survey, consumers were found to be 110% more likely to add additional items to their baskets and 40% more likely to spend more than they had planned when personalization is used.  

Personalization offers brands the opportunity to leverage consumer data to the mutual benefit of both the business and the individual. In analyzing past activities and purchases, brands can tailor subsequent communications based on these preferences. For the customer, they feel seen as individuals and experience a journey that meets today’s expectations of being relevant, convenient, and seamless. For the brand on the other side of the relationship, such strategies have been seen to directly impact the bottom line, with companies driving on average 40% more revenue where personalization in implemented (McKinsey). 

Growth through product personalization: Creed X THG Ingenuity  

When luxury fragrance brand Creed partnered with THG Ingenuity, they sought to accelerate performance in international markets by adding value to the customer’s ecommerce experience with the brand. Having witnessed previous success with personalization offerings on their UK site, Creed were able to extend this offering to their boutique sites across the EU through THG Ingenuity’s European personalization and distribution capabilities.   
With notable past performances of personalized products accounting for up to 30% of sales at key times throughout the year, such as Valentine’s Day, Fathers’ Day and Christmas, the extension of this offering to European markets has empowered Creed to strategically capitalize on the popularity of and demand for personalization, through the THG Ingenuity partnership.  

The digital age and the scale of choice it provides consumers today has resulted in buyers becoming increasingly aware of what they want. They no longer wish to be flooded with endless options available, rather they seek a buying journey that caters to their needs specifically.   

Personalization enables brands to meet these expectations and creates the grounds for a digital dialogue between both sides of a transaction. The relationship this develops is unique and individualized to the consumer which can enable brands to scale growth in generating individual connections to each person within their audience. In doing so, brands create opportunities to differentiate within an increasingly competitive online beauty landscape set to be worth 48% of the industry by 2023 (Statista). 

Personalization is just one of several key trends shaping the future of the beauty industry. Discover more in our latest Beauty Trends Report.

At THG Ingenuity we’ve been driving global online growth for brands from across the world for 17 years. Discover how we can help you achieve your growth ambitions by reaching out to our expert team today.

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