Leveraging services such as Google Analytics 360 Suite, Sephora matches customers across channels and tracks the drivers of sales.įurther enhancing the value of Sephora’s digital strategy is its member engagement through the company’s online content. Through observation of trends and shopping habits, Sephora is able to tailor marketing content, better segment its audiences, and personalize advertisements to individuals. With this mobile engagement and through its multiple digital initiatives, Sephora also collects troves of useful shopper data which it harnesses to continue enhancing the customer journey. Furthermore, customers can find products in-store with in-app directions. This matches the service that an in-store associate may otherwise provide, while clearly displaying prices, available SKUs, and online ordering if not available in-store. Through the Sephora app, customers can scan products to access online reviews and product ratings. Mobile, Data, Content Development, and Customer Engagementīringing the shopping experience into the digital age also requires an omnichannel approach, linking the physical stores to the vast expanses of information users are accustomed to leveraging in online channels. Since launch in 2016, Sephora’s AI and AR platforms have added new features in 4-month sprints to continue advancing the company’s offerings, helping the company stay ahead of the competition. While these functions are impressive, innovation never rests, and Sephora has not grown complacent. Sephora’s proprietary Color iQ technology can scan a customer’s skin to assign unique Color iQ numbers which correspond to various cosmetics that meet the individual’s needs and offer personalized, relevant recommendations. Pathways to a Just Digital Future Watch this tech inequality series featuring scholars, practitioners, & activistsĪt the same time, Sephora leverages artificial intelligence to provide product recommendations to members using its visualization capabilities. Since launch, this feature has seen 8.5 million visits with over 200 million shades tried across 20,000 SKUs ranging from lipsticks to eye shadows and blushes. In combination with Sephora’s Visual Artist product, customers can upload photos of themselves and discover compatible products that work with their unique skin tones and desired look. Through this partnership, Modiface enables augmented reality “digital try-ons” of Sephora’s products so that shoppers can experience beauty products without having to physically go to a store. Sephora has successfully shattered the barrier between the physical and the digital worlds with the integration of Modiface into their offering – a facial analysis and visualization technology firm that has been a Sephora partner for nearly a decade. One of the more unique applications of technology in the Sephora platform is with augmented reality and artificial intelligence. Not only have they successfully integrated digital into their company DNA, they have become a digital-first player in an otherwise brick-and-mortar industry worth $56 billion in the US alone – leveraging multiple nascent technologies to advance the business across several fronts.Īugmented Reality and Artificial Intelligence How can a cosmetics retailer – a company that primarily deals in physical goods which individuals want to touch and feel, demo, and view in front of a mirror – leverage digital to better serve customers? This is what makes Sephora’s digital transformation so impressive. In fact, in the beauty industry, it’s almost counter-intuitive that digital can play such a significant role in the customer experience. The skills required, talent needs, and organizational inertia pose ongoing challenges to retail executives, and few are navigating this transition as successfully as a winner of the digital revolution: Sephora.įounded in 1970, Sephora preceded the existence of almost all of the technology that the company leverages for success today. Shifting with the tides and leveraging the digital revolution to augment an existing business is challenging. Since the rise of the Internet, digital behemoths and upstart online pure-plays have been displacing their brick and mortar retail counterparts, disrupting business-as-usual throughout consumer sectors.
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