How you can effectively use data to accelerate your beauty brand
In the 21st century, data has become the fabric of our world. As our lives increasingly move online and new tech tools are developed, the data our actions generate is continuously expanding and, with it, our understanding of ourselves and the spaces we inhabit. As such, data has become central to the way brands learn about and serve their customers. It isn’t the preserve of big tech companies with Sillicon Valley HQs: data is helping and is able to help businesses of every size, across every sector. Data collection and analysis have shifted from nice-to-haves to need for brands who wish to remain competitive. But many companies, particularly in the beauty industry, are still struggling to get a handle on effectively collecting and using data. So, how can beauty brands use their data better and what does this mean for consumers?
Collecting and using beauty data
For many cosmetics companies, especially SMEs, a data strategy starts and stops with recording how many customers buy their products online. Although this is vital information to know, brands now have the ability to understand a great deal more about their customers and failing to explore this is a big waste.
Data from previous marketing campaigns, social media, emails, website quizzes, as well as the online store, should all be collated to fully learn about a brand’s different customers and their behaviours, preferences, priorities and concerns. This incredibly valuable knowledge can transform marketing plans and product development but effectively collecting data from a wide range of sources is something that most beauty brands are lacking.
But collecting data is one thing and effectively analysing and utilising data is another.
Once beauty brands have collated information from a range of sources, they should then be looking to hyper-target customers and potential customers to maximise their sales. Central to this is the use of data segmentation tools that allow brands to hyper-personalise campaigns to reach the customers they want for a specific product or campaign. For example, based on data collected from previous campaigns, their online store and social media, a company can identify customers who have extremely sensitive skin. They can then send these specific customers marketing that relates to sensitive skin products or tailor a campaign to address these concerns, maximising conversion rates and ROI.
And it’s not just about a short-term increase in sales. Using data for customer personalisation helps build brand trust and loyalty, as consumers feel truly listened to and valued by a brand. Creating this personal brand experience and having personalised conversations can be particularly crucial for smaller businesses, who are looking to make their mark in an incredibly competitive market.
Want to find out how Odore can help with data collection and segmenting? Request a demo.
Reaching new demographics with digital tools
Data collection and hyper-targeting also plays a part in reaching specific demographics. As Gen Z makes more and more of an impact on the economy, brands need to be tailoring their marketing strategies to their unique behaviours and preferences. Gen Z (those under 26) are typically low attention span, online shoppers and reaching them will require new, digital tactics that haven’t been needed to target Gen X (consumers aged 42 to 56). Capturing their attention will rely on personalised marketing which, in turn, relies on effective data collection.
This data collection increasingly centres on zero party data. Concerns around data privacy have meant there is a big move away from third party data and towards zero party data, where information is directly inputted by the consumer. Brands need to be aware of this shift and find ways to effectively connect with and learn from their customers.
Odore’s technology helps brands collect zero party data and leverage key learnings. Our platform links to a brand’s CRM and allows them to build interactive quizzes and forms that they can use across their website, social channels and emails to draw out consumer insights, shape marketing strategies and increase customer acquisition. For example, a leading beauty company built an interactive quiz on our platform and asked customers questions about their skin concerns. Contrary to their original assumptions, they discovered that the majority of their customers were most concerned about ageing skin and this informed their future planning and approach to campaigns. Collecting zero party data in this way gives brands critical insights to guide decisions across all areas of the business, from packaging design to re-marketing campaigns.
Data has the power to revolutionise the way beauty brands understand and interact with consumers but too many aren’t realising its potential. If cosmetics companies want to increase conversions, build brand loyalty and reach new demographics, they need to be thinking hard about the data they’re collecting and what they’re doing with it.
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