Q Thoughts

Four Strategies Marketers Can Mirror from a Top Beauty Retailer


In Q4, 2015, a leading beauty retailer reported considerable growth in revenue for the year. Here is an analysis of the retailer’s successful branding strategies.

1. Prioritize prospects, but understand & invest in loyalty

Over the course of her lifetime, the average woman is expected to spend $15,000 on makeup according to a study by Mint.com. As a result, beauty retailers vie to cultivate a loyal customer base. The retailer’s robust rewards program, and the way the brand focuses digital efforts to support the program makes the mark.

The rewards are consistent with other programs: points for purchases made, gifts on a loyalist’s birthday, etc.  Conversely, the retailer differentiates itself by analyzing insights from respective loyalty audiences and using them to inform digital tactics in real-time.

A common inclination, and one that exists with major CPG brands, is to build CRM lists, leverage a DMP and target each of these consumers in exactly the same way. But there are more meaningful ways to allocate ad dollars. Case in point: in a retail store, a salesperson likely wouldn’t treat a first-time customer the same way as a frequent and high transacting shopper. Here lies a challenge of streamlining and automating individual shopper insights to digital.

Q Tip: With ownerIQ’s Digital Checkout Tag (DCT) retailers can observe audience insights and optimize in real-time towards consumers in various buckets of their loyalty programs.

This is a tool that retailers and advertisers can use to validate and prioritize their own loyalty audiences.

2. Create fresh content while empowering your audience to be content creators

The retailer maintains traditional channels such as email newsletters, Facebook and Instagram, while evolving to support more interactive mediums including YouTube tutorials, Snapchat, and in-store beauty classes.

The commitment to new content solidifies the retailer’s role as a leader in the beauty industry and keeps the brand top of mind when it comes to new purchases. But with a high volume of content, how does the brand keep up in its creation? Simple, by expanding to consumers…

With “looks boards,” the retailer encourages avid Pinterest followers to post their newest looks. This tactic works twofold: It produces a constant flow of content and it also provides existing shoppers with a platform to endorse products. A recent study by TrustPilot indicates 79% of businesses believe that online reviews play an important role in consumer decision making, while 62% of online consumers say they are more likely to do business with a company if they read a positive review.

Thus by making the consumer the effective endorser, the retailer has the potential of 13.6 million consumers (their current number of Facebook likes) promoting their product at any given time.

3. Leverage the full (and untaken) path to purchase

Many marketers believe the path to purchase starts with the awareness and research phase, but in actuality the full path to purchase starts in the past. Essentially, a user’s past shopping behavior is the most accurate indicator of future purchases. The retailer’s “looks bag” enables shoppers to retain a record of past purchases or view recommendations of new products they may be interested in. This feature encourages shoppers to browse products outside of their typical purchasing patterns, and grow the value of their shopping cart.


Furthermore, the retailer creates non-traditional steps along the path to purchase. For certain items, the “Out of stock email me when back in stock” button cultivates purchase intent at the retailer vs. a department store. In other instances, beauty insiders will receive a text when their order has shipped.

The cross-channel revolution brings overstimulation, but brands that look at each step in the purchasing cycle as an opportunity are the ones who will remain successful and relevant.

4. Stay innovative and ubiquitous

A common fear amongst marketers is oversaturating consumers. The retailer defies this attitude by splashing their brand across all necessary forms of media: digital, OOH, print and social. Rigid caps are replaced with an emphasis on differentiation and novelty. The method is effective because if a user cares about a brand, they won’t find the frequency to be undesirable.

In any given week, the retailer’s consumers may receive email blasts, coupons in the mail, walk past a billboard or view a Snapchat story. The regularity will keep the brand top of mind while the variety will keep the messaging from becoming stagnant.

Ultimately, retailers in the space will succeed with a steadfast solution for understanding their audience. Let ownerIQ help you better understand yours with a complimentary Shopper Audience Insight Report or Digital Checkout Tag consultation today.

Interested in learning more? Check out ownerIQ.com

Categories:Posts from 2016


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