Let’s get personal: how beauty retailers can use customer identity to drive growth

Personalization is increasingly vital for shoppers, particularly in the beauty and skincare industries.&nbsp;In the ever-changing world of beauty, understanding consumer behavior and trends is crucial for businesses to stay ahead. To garner new insights about this dynamic space, Bolt surveyed 1,000+ U.S. shoppers about their preferences in beauty and skincare.&nbsp;The takeaway? For brands to thrive in the ever-evolving world of beauty, they have to get to know their customers like never before. &nbsp;1. The generational divide of AI-powered shopping:The beauty industry is currently experiencing a customization revolution, fueled by cutting-edge technologies such as augmented reality (AR) and AI. Brands that embrace this change are enjoying the benefits, and the metrics are clear—58% of shoppers are willing to pay at least 10% more for personalized online shopping experiences.&nbsp;Beauty brands are leveraging AI to enhance online experiences, ranging from skincare diagnostics to shade-match try-ons. These real-life applications not only enhance the digital shopping journey, but also instill newfound confidence in shoppers' purchasing decisions.With that said, there remains a clear split in shopping preferences down demographic lines. A staggering 80% of Gen Z and 62% of shoppers overall are more inclined to purchase a beauty product if they can find their perfect formula using technology. Of all surveyed shoppers, 43% of customers would rather use AI-powered shade-matching online than doing so in-store. However, while approximately half of Gen Z, Millennials, and Gen X also lean towards online shade-matching, a staggering 70% of Baby Boomers and the Silent Generation still prefer the in-store experience.While retailers can find an initial leg-up by understanding their shoppers at a demographic-level, the real winners will identify and personalize for each individual customer—allowing them to win new business at an accelerated pace.&nbsp; &nbsp;2. The power of personalization:In this new era of ecommerce, beauty consumers crave personalization more than ever before. The report reveals that 68% of respondents are more likely to purchase from brands that offer personalized beauty recommendations and experiences. From tailored skincare regimens to makeup suggestions based on individual preferences, personalization has become a game-changer in the industry. By leveraging data-driven insights, beauty brands can provide personalized product recommendations, targeted marketing campaigns, and exceptional customer experience—fostering brand loyalty and customer satisfaction.&nbsp;3. Beauty for everyone:Diversity and inclusion are increasingly vital in the beauty and skincare industries. This significant trend emphasizes the importance of representation and provides support to women and minority-owned brands. It's evident that representation matters, with 58% of shoppers saying that diversity and inclusion are important when purchasing products from a beauty or skincare brand.This is not just a fleeting trend, but a crucial factor for long-term success. Investing in diversity and inclusion is not only the ethical choice but also a wise business move, as racial inequity in the beauty industry presents a $2.6 billion opportunity (BeautyMatter). Recently, there has been a notable surge in Black-owned beauty brands, underscoring the demand and growth potential in this sector. &nbsp;Bolt: Your personal(ization) assistant:To fully capitalize on these trends, create exceptional experiences, and cultivate lasting customer relationships, it is imperative to have a deep understanding of your customers. The key to unlocking the power of personalized experiences and fostering loyalty lies in understanding shopper identity.Skincare and beauty brands can effectively tailor experiences that resonate with customers and drive long-term loyalty by gaining a true understanding of who their shopper truly is. While implementing these strategies can seem like a huge lift for retailers, there is one, simple solution: Bolt.With Bolt, brands can effortlessly register and enable shoppers to log in with a single click, eliminating the need for passwords. This streamlined process allows brands to gain a deeper understanding of their audience and provide unique and personalized experiences. By leveraging Bolt, retailers can identify more shoppers, expand shopper accounts, and enhance customer lifetime value.But the benefits don't end there—Bolt takes it a step further by offering a seamless one-click checkout experience that significantly boosts conversion rates. In a beauty landscape increasingly defined by personalization, tech, and diversity, Bolt is the merchant-first solution brands need to dramatically uplevel their ecommerce offerings.