Beauty is inherently personal, and it's no surprise that brands are truly leading the charge when it comes to building experiences to drive customer loyalty, retention and liftetime value. At the heart of this is effective use of data.
Personalization strategies are key for e-commerce brands to grow and retain their customer base. For brands in the beauty category, which has seen 20%–30% growth in the last year alone, being able to efficiently analyze and use data to personalize online shopping is especially important.
Brands within the space have an opportunity to use customer data to inform programs and experiences that can drive loyalty and retention. To do this effectively, brands are partnering with technology companies that can help them analyze data to segment and influence customers during their shopping journey.
However, there are challenges for emerging and established beauty brands that are striving to personalize the customer experience, amidst a staggering basket abandonment rate of 85% within the industry.