Beauty Retail: Tech-Savvy Services Boost Beauty Retail

 

Beauty retail is booming. It's the most unstoppable retail sector, pushing the limits of what's possible in brick-and mortar shops.

We see the best way that beauty retailers are innovating is by combining tech and service. Sephora, Ulta and Target are just a few of the biggest beauty retailers. They all want to offer their customers unforgettable experiences. It all starts with technology.

Returning to the consumer

We know that customer support capabilities increase with tech. Staff will have more time to help customers than stock shelves if they have more tech support. Innovative tech options are no longer just for menial tasks. They have evolved into service products. The first frontier of beauty is "Try-on" technology.

Macy's has just opened 50 in-store kiosks that use virtual mirror technology. Customers can digitally test out over 250 of their products at these stores. This is all part of their goal to be theplace for Beauty - reclaiming a position that they have held for generations.

Digital test technology offers many benefits. By reducing the number of products required for sampling, retailers can reduce their inventory. The product is not contaminated with lip or eye products, so shoppers don't have the worry of lipstick stains or streaks on their wrists. Tech is fun, and that's a big plus. Take a photo of the consumer, give it a makeover, and then post it on social media using a hashtag.

Target is taking it even further. Target is offering the same technology online for greater reach. They have ten AR screens in stores, with more to follow. This technology is being complemented by mass merchandisers who have beauty experts available to answer your questions via chat, text, or in-store.

Sephora, the industry leader, isn't slowing. In the last year, Sephora opened two Studios in Boston and Hoboken. A third Studio just opened in Williamsburg, Brooklyn, at the end of September. The concept shops feature virtual AR technology and a scannable ColorIQ to match foundations to customers' skin tones.

Sephora is expanding their services offerings. Beauty Studio Check-In is available online for reservations. Their Client App allows for quick customer service and mobile checkout. They also offer a variety of concierge services, all key ingredients to the recipe that's driving their momentum.

Experiences in beauty that are personal and memorable

Technology can not only enhance the shopping experience by providing helpful services, but it can also magnify every moment.CLICK TO TWEET

Customers will have memorable experiences tailored to their needs at the intimate Sephora Studios.

L'Occitane en Provence also goes all in. A new flagship NYC store was launched by the French beauty brand. We were able to see it in person. It's all about the customer experience and uses tech to achieve that.

A social media area is located in the store, with yellow bikes parked in front of a Provence backdrop. These photos are automatically featured on a live feed. The store featured a rain-shower sink where hand products could be tested. Although not technically technical, it was still very experiential.

The real highlight was the virtual reality headset, which transported viewers to a hot balloon ride in the South of France. L'Occitane offered simultaneous hand massages using lavender products. This allowed the VR to connect the senses and transport the shopper directly to the lavender farms. The experience was unforgettable and unique. Is the tech worth it? We believe so.

Retailers should not be content to sit on their laurels. Expanding VR moments is one way to enhance consumer experiences. A variety of rotating experiences can help keep your products relevant and encourage shoppers to return. Why not take your customer on a virtual tour through an orchid garden, complete with a spray of Neroli & Orchidee Eau de Parfum? Show how shea tree nuts are made into shea butter, which is used in many L'Occitane's creams.

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More than just tech for tech's sake

It's a good thing that tech capabilities are increasing. This topic has been the subject of many articles. We are excited about what lies ahead.

Your brand and the story that you are trying to tell must be reflected in the technology you use in-store. The consumer is ready to experience a variety of tech-driven experiences. These can quickly become overwhelming. Your ultimate message can be distracted by a slew or unnecessary tablets, as well as excessive VR/AR excitement.

It is important to consider what the shopper will take away from the shopping experience. We're not talking about swag bags. L'Occitane's goal was to create a memorable experience that is driven by the senses. Although the VR experience of flying over fields of Provence would be cool, they added the luxury scent of lavender to the hand massage to elevate the experience and maximize the product's benefits. The cream can be used at home or on any other lavender-scented products to transport the user back to the moment they flew over the fields.

L'Occitane could improve the signage surrounding the VR experience, directing customers to the VR section and creating teaser signage that guides them. The VR section could be separated from the rest of store to enhance the sensory experience and give consumers separate, dedicated interactions. The overall experience was fantastic!

The potential for technology to have a significant impact on the shopping experience is huge. We expect to see it both in-store as well as online in a seamless manner. Retailers need to trust creative and innovative teams to enhance every tech experience.

In-Store Shopping Technology:

Who doesn't shop these days without a smartphone in their pocket or on their hands? Brick-and-mortar retailers should not be fighting the rise of smartphone apps, or limit technology to the checkout area. Augmented reality and in-store shopping technology can help you engage customers and expand your venue in ways that were unimaginable just a few years ago.

Shoppers, even those with the best tech skills, don't always know what they don’t know. If your signage doesn't alert shoppers to any in-store benefits, they won't be able to fully leverage your technology. CLICK TO TWEET

Shoppers today expect tech

Scandit recently conducted a survey of consumers and found the following:

• 44% of respondents to the survey felt that using a smartphone or tablet would enhance brick-and mortar shopping experiences.
• Respondents who used mobile devices to shop in a physical store found that the smartphone was the preferred device by 83%, 14% and 3% respectively. The following is the data.
• 54% of respondents indicated that they expected physical retailers to offer a mobile-friendly shopping app.

Let's take a look at these numbers. Only half of those surveyed felt that using a smartphone or tablet enhances in-store shopping experiences. This is a surprising low number and raises the question, "Is it because consumers don't believe that technology can make shopping easier?" Are they unaware of the potential benefits that technology has for them?

It's no secret that shoppers love to receive instant coupons and buy items on sale, even if they don't intend to purchase them. They refer to customer reviews on everything from lipsticks that last a long time to new HDTVs to energy drinks. A shopper might come in to purchase one item, but feel compelled by a sale in another department. How many times has it happened that I went in to purchase clothes for my daughters but left with something for my husband. Or a pair of shoes for myself.

Self-checkout at Amazon and Walmart dominates the news about in-store tech. Checkouts are just one part of the shopping process. With signage, retailers can make more of their shopper tech investments and increase customer satisfaction.

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Apps for consumers in-store speed up and enhance shopping

In-store technology allows shoppers to view coupons, product reviews, self-checkout, and access other information without ever having to go into a physical store. This is a great benefit for flagship stores, mass merchandisers, and department stores that have large square footage.

There are many ways to make use of in-store tech. What about allowing customers to scan the barcodes of products on shelves to search for specific ingredients? Imagine being able to quickly find items that meet your criteria for fats, salts, calories, or other potential allergens by simply scanning the product barcodes on a shelf. This can be a huge shopping advantage in a nut free, gluten-free and sugar-free world.

Barcode technology can be used to help shoppers find appliances that are within their budget or meet Energy Star rating criteria. This will save shoppers time searching through generators and air conditioners, so they can quickly find the one that suits their BTU requirements. Then, let them know where to find customer reviews to narrow down their options.

In-store shopping technology for retailers

In previous posts, we've discussed b8ta. Macy's now has a partnership with the software-powered retailer. Macy's recognizes that tracking data can help determine how shoppers interact with products.

Macy's has been smart in using its Herald Square flagship store to test the new partnership. They can learn best practices, such as the best product mix, scale, and scope, from this pilot program before rolling it out nationwide. This incubator will have an impact on their b8ta store-within-astore, as well as how other products are displayed and merchandised in Macy's stores.

Good Housekeeping believes that you can combine try-before-you buy with their famous seal of approval. The new GHLab store at Mall of America feels and looks just like home. However, it only sells products that have been awarded the prestigious seal. These products include personal care products and household cleaning products.

You can't spend money in this store. To make it work, download the Amazon SmileCodes app. Tap your phone to scan the barcode and then checkout on Amazon. Voila! Your order arrives at your door. Many shoppers don't want to have to transport their Dyson vacuum cleaner home or figure how to fit their flat-screen television in their car. The ultimate in convenience and quality assurance for shoppers.

Barkshop Live has a unique way to reach dog owners. Fido gets 30 minutes of playtime on his appointment-only play dates with an assortment toys. The session is recorded by a camera and metrics are generated about how many toys were used and how long. Final reward: A recommendation of toys that your dog enjoyed the most, so you can purchase them and bring them home for continued enjoyment. This technology is extremely rewarding for pet owners as well as the brand. They can now use the data to create a Fido focus group that will guide product development and inventory purchases.

Augmented reality is on the rise

Augmented technology is a great example of in-store tech innovation. It is being used in a variety of products. It's being used in a variety of products, including home improvement (Lowes), fragrance (L’Occitane), and beauty (YSL Beauty). This was so guests could test out new lipstick shades during their New York Fashion Week pop up.

Try a new drill to make a DIY home improvement project. The Lowe's Holoroom Experience uses virtual and artificial reality in its in-store VR clinics. Learn how to measure, feel the drill's weight and position a screw. Lowe's is more likely to be their first choice for home improvement tools because it educates its customers. Talk about customer retention and acquisition!

L'Occitane embraced VR in its flagship NYC store. You don't have to fly across the Atlantic to feel as if you are in France. Shoppers can enjoy a 360-degree hot air balloon ride above the lavender fields in Provence. This experience is even more magical! Lavender aroma is released through a hand massage. It is a deeply relaxing, indulgent experience that taps into the emotions as well as the senses .

Technology's benefits are yours if you show the way

This technology is amazing and elevates the shopping experience. It's impossible to replicate online. Is there anything else that can't easily be duplicated? A live consultant is available to help explain the technology and answer any questions. Even floor staff need assistance.

We said at the beginning that people don't understand what they don’t know. Many brand managers, who spend months talking about new technology internally and night dreaming about it, assume that their customers are already familiar with it. Technology can lead to companies becoming so obsessed with it that they neglect to inform their customers. Technology relies on technology, whether it's signage explaining the VR-to product connection or guiding shoppers to the store location.

This was something that the GH Institute realized when they trained and hand-picked the staff for their GH Lab pop up. They know that while new technology can enhance the shopping experience, customers still value having a human companion to help them.

Visitors to both L'Occitane's and YSL Beauty shops must navigate their way through a few floors to reach the AR destination. A brand might want to surprise shoppers at the end of their journey. However, you don't want them to abandon the adventure and miss out on the final reward. Signage can offer enough excitement to entice shoppers to continue on.