How Personalization Can Help Your Beauty Brand Differentiate

The demand for personalization has spiked in recent years, not just in how brands communicate but in the products they offer. Discover how personalization can help your beauty brand differentiate here, plus how THG Ingenuity helped drive personalization success for luxury fragrance brand Creed.

February 21, 2022

4 mins read

Catz Thompson

When it comes to ecommerce, the digital age offers consumers a huge range and scale of choice. But with this scale also comes an increased demand for – and expectation of – finding and getting what they want, especially from beauty brands.

Customers no longer wish to be flooded with endless options. Instead, they want a buyer’s journey that caters to their specific needs.

Personalization helps brands meet these expectations, creating a bespoke, customized journey that identifies, markets and sells the right product to the right customer. And in a crowded beauty and cosmetics market, personalization is all but essential.

In this article, we explore exactly how personalization can help your beauty brand stand out.

Increased demand for personalization

To understand how personalization can help your beauty brand differentiate, we must first look at why demand for it has soared.

The increased use of digital technologies in recent years, led by smartphones, has created a new standard for customer-brand relationships.

Consumers today enjoy greater-than-ever levels of access to products and brands. But with this comes an expectation and a need for businesses to differentiate themselves to generate sales and foster loyalty.

Personalization has emerged as key to enabling this differentiation.

71% of consumers expect companies to deliver personalized interactions, and 76% become frustrated when this doesn’t happen.

This indicates that personalization today goes beyond simply ensuring the consumer’s name appears at the start of an email. They expect a personalized experience across ads, product development, website design and even brand positioning.

Clearly, when so many customers demand it, personalization is key for successful beauty brands.

Download our Beauty Trends Report for the latest insights.

Why beauty brands use personalization

The online beauty sector has seen huge growth in recent years, and is predicted to be worth $358.4 billion by 2026. In this competitive market, the need to stand out is greater than ever – and personalization is the key.

But what makes personalization such an effective differentiator in the beauty market?

Personalization makes beauty brands stand out by offering a bespoke experience grounded in a customer’s own preferences and requirements. It makes them feel recognized as individuals, enabling them to connect with a brand in a unique, customized way.

Personalization in beauty can take many creative forms.

Data-backed product recommendations based on past purchases in a branded marketing newsletter. Engaging website quizzes to help consumers discover which product is right for them. The option to personalize a gift for a loved one. The options are virtually unlimited.

Whatever form it takes, in a space where competition is rife, beauty brands can use personalization to connect with and retain their customers.

A miniature shopping cart filled with assorted cosmetics against a white background.

The impact of personalization

Personalization gives brands the opportunity to leverage consumer data to the mutual benefit of both the business and the individual – and the results are proven. Consumers are 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.

By analyzing past activities and purchases, brands can tailor subsequent communications based on these preferences. For the customer, they feel seen as individuals, with a personalized experience that is relevant, convenient and seamless.

But for the brand, personalization strategies can directly impact the bottom line, with companies driving on average 40% more revenue where personalization is implemented.

Growth through personalization: Creed x Ingenuity

Luxury fragrance brand Creed sought to accelerate its international performance by focusing on a value-added ecommerce customer experience – with Ingenuity as the partner to achieve it.

With previous personalization success in the UK, Creed was able to extend this offering to its boutique sites across the EU, powered by Ingenuity’s personalization and distribution capabilities.

Past performances of Creed’s personalized products accounted 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 empowered Creed to strategically capitalize on the popularity of and demand for personalization, all through its partnership with Ingenuity.

Personalization delivers unique, individualized customer relationships that help brands spark individual connections for greater growth. In an increasingly competitive online beauty landscape, this offers brands a powerful way to differentiate and win customers.

Powerful personalization requires insights, analytical capabilities and a partner to help bring them together for growth. At Ingenuity, we’ve been driving global online growth for brands from across the world for 17 years.

Reach out to our experts today and discover how we can help you achieve your growth ambitions.

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Customer experience

Beauty

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