What is Customer Journey Automation? Use Cases, Benefits, and Strategies

Sabah Noor

Sep 27, 2024

10 min read

What is Customer Journey Automation?
Why is Customer Journey Automation Important for Businesses?
Benefits of Customer Journey Automation
1. Personalized Customer Experience
2. Increased Efficiency and Reduced Errors
3. Omnichannel Integration
4. Improved Data Management
5. Enhanced Marketing Strategies
6. Predictive Analysis
7. Better Customer Retention
Want to reduce your CAC to half?
The 7 Steps of Mapping a Customer Journey
1. Define Objectives
2. Identify Buyer Personas
3. List Touchpoints
4. Identify Stages
5. Gather Data
6. Visualize the Journey
7. Iterate and Refine
Choosing the Right Customer Journey Automation Platform
1. Features and Capabilities
2. User Interface
3. Cost
4. Customer Support
5. Analytics and Reporting
Conclusion

Companies always want to know their customers better and make their experience smooth and enjoyable.

One of the best ways to do this is through customer journey automation. This method helps companies monitor how customers interact with their brand from the moment they first contact it until after they purchase.

By understanding these interactions, companies can improve the customer experience. By adopting customer journey automation, companies can make their customers happier, keep them coming back, and ultimately make more money.

In this blog, we will discuss customer journey automation, why it's so important, discover its advantages, map out a customer journey, and how to choose the best platform for your company. Let's get started!

What is Customer Journey Automation?

Customer journey automation involves an automated system that tracks and analyzes all interactions and communications between a business and a customer. It starts from the moment a customer first interacts with the brand.

Whether through an advertisement, email, or social media, it continues through to the purchase of a product and beyond. This automated process maps out the customer’s journey and uses the data collected to improve the overall experience, ensuring the journey is as smooth and efficient as possible.

By utilizing customer journey automation, businesses can better understand their customers' needs, preferences, and behaviors, the major aspects of marketing automation services .

A customer journey builder is a key component of this automation. It helps businesses visualize and design the customer journey, allowing them to set triggers and automate interactions based on customer behavior and preferences.

Why is Customer Journey Automation Important for Businesses?

In an era of higher customer expectations, businesses must provide a seamless and personalized experience at every touchpoint.

Customer journey marketing automation is crucial because it helps businesses:

Attract New Customers: By tracking and analyzing customer interactions, businesses can identify potential customers and tailor their marketing strategies to attract them more effectively.
Engage and Nurture Existing Customers: Automation helps businesses maintain consistent communication with their customers, keeping them engaged and nurturing the relationship over time.
Retain Customers and Reduce Churn: Providing a tailored and seamless experience enhances customer satisfaction, improving retention rates and reducing churn.
Automate Repetitive Tasks: Automation tools can handle routine tasks, allowing employees to concentrate on more strategic and high-value activities.
Streamline Customer Journeys: By mapping out the customer journey and automating essential processes, businesses can guarantee a seamless and efficient customer experience throughout their interaction.

Benefits of Customer Journey Automation

Implementing customer journey automation provides numerous advantages that can significantly enhance a business’s overall success.

Here are some of the key advantages:

1. Personalized Customer Experience

One of the most significant benefits of customer journey automation is the ability to provide a personalized experience for each customer. By tracking customer interactions and behaviors, businesses can tailor their communications and offers to meet each individual's needs and preferences. This level of personalization improves customer satisfaction and increases the likelihood of repeat purchases and brand loyalty.

2. Increased Efficiency and Reduced Errors

Automation tools can take over repetitive tasks, such as sending follow-up emails or updating customer records, which reduces the risk of human error and increases overall efficiency. This allows employees to focus on more strategic activities, such as developing new marketing campaigns or improving customer service.

3. Omnichannel Integration

Customer journey automation enables businesses to integrate various communication channels into a cohesive system, such as , social media marketing automation , and customer experience automation . This omnichannel approach ensures that customers have a seamless experience regardless of the platform they use to interact with the business.

4. Improved Data Management

Automation platforms collect and analyze data from various sources, providing businesses with a comprehensive view of the customer journey. This data can be used to identify trends, measure the effectiveness of marketing campaigns, and make data-driven decisions that improve the overall customer experience.

5. Enhanced Marketing Strategies

Customer journey automation tools can help businesses reassess and refine their marketing strategies by analyzing customer data and behaviors. This ensures that campaigns are targeted toward the right audience and are more likely to achieve the desired outcomes. Additionally, automation tools can provide detailed reports on campaign performance, allowing businesses to continuously optimize their marketing efforts.

6. Predictive Analysis

Advanced customer journey automation platforms often include predictive analysis features powered by artificial intelligence (AI). These tools can analyze customer data to predict future behaviors and preferences, enabling businesses to proactively address customer needs and improve the overall experience.

7. Better Customer Retention

A well-mapped and automated customer journey helps businesses identify and address potential pain points before they lead to customer dissatisfaction. By leveraging innovative SaaS marketing automation solutions, businesses can proactively identify and address these pain points, ultimately enhancing customer satisfaction.

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The 7 Steps of Mapping a Customer Journey

Mapping a customer journey is a crucial step in understanding the customer experience and identifying areas for improvement.

Here are the seven key steps involved in creating an effective customer journey map:

1. Define Objectives

The first step in mapping a customer journey is to define the project's objectives. These objectives may include identifying challenges, optimizing conversion paths, or improving the user experience. Clearly defining the goals will guide the entire process and ensure the map serves its intended purpose.

2. Identify Buyer Personas

Next, businesses must create detailed buyer personas representing their ideal customers. These personas should include information about customer behaviors, preferences, pain points, and motivations. Understanding these aspects will help businesses tailor the customer journey to meet the specific needs of their target audience.

3. List Touchpoints

Businesses must identify all the touchpoints where customers interact with the brand. This includes online touchpoints like websites and social media and offline interactions like in-store visits or phone calls. Listing these touchpoints will help businesses understand how customers engage with the brand and create strategies to enhance the experience at each stage.

4. Identify Stages

The customer journey should be divided into different stages: awareness, consideration, purchase, and post-purchase. Each stage represents a different phase of the customer’s interaction with the brand, and understanding these stages will help businesses tailor their strategies to meet customers' needs at each point in the journey.

5. Gather Data

Data is the foundation of a practical customer journey map. Businesses should gather data from various sources, including customer feedback, website analytics, and competitive insights. This data will provide valuable information about customer behaviors, preferences, and pain points, which can be used to optimize the overall experience.

6. Visualize the Journey

Once all the data has been collected, businesses should visually represent the customer journey. This map will provide a clear overview of the customer’s experience at each stage and help identify areas for improvement. A well-designed journey map can also be a valuable reference for future marketing and customer service initiatives.

7. Iterate and Refine

The customer journey map is not a static document—it should be continually updated and refined as more data is collected and customer needs evolve. Regularly reviewing and updating the map will ensure that it remains relevant and continues to provide valuable insights into the customer experience.

Choosing the Right Customer Journey Automation Platform

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Here are some factors to consider when choosing a platform:

1. Features and Capabilities

Different automation platforms offer different features and capabilities. Businesses should create a list of must-have features based on their specific needs and conduct thorough research to find a platform that meets those requirements. Key features include omnichannel integration, predictive analysis, personalization capabilities, and detailed reporting.

2. User Interface

The user interface of the automation platform should be intuitive and easy to use. A well-designed interface will make it easier for employees to navigate the platform and access the information they need to manage the customer journey effectively.

3. Cost

Cost is an important consideration when choosing an automation platform. Businesses should compare the costs of various platforms and consider factors such as subscription fees, user licenses, and scalability. Choosing a platform that fits the budget while still offering the necessary features and capabilities is important.

4. Customer Support

Another crucial factor to consider is the platform vendor's level of customer support. Businesses should look for vendors that offer 24/7 support, quick response times, and a variety of support channels (e.g., phone, email, and live chat). Additionally, consider whether the vendor offers training and onboarding services to help employees get up to speed with the platform.

5. Analytics and Reporting

An effective customer journey automation platform should provide robust analytics and reporting features. These tools will help businesses track the performance of their marketing campaigns, measure customer satisfaction, and make data-driven decisions to improve the overall experience.

Conclusion

Customer journey automation is a powerful tool that can significantly enhance your marketing strategy. By understanding and optimizing the customer journey, businesses can create personalized experiences, improve efficiency, and drive growth.

For organizations looking to implement or improve their customer journey marketing automation, exploring options with advanced marketing automation customer journey capabilities is essential.

Ready to take your customer experience to the next level? Contact Saffron Edge to discover how our solutions can help you master customer journey automation and achieve your business goals.

Frequently Asked Questions

Customer journey automation typically involves using customer relationship management (CRM) systems, marketing automation tools, data analytics, and artificial intelligence to create automated workflows that guide customers' interactions with a business at different touchpoints.

Common use cases for customer journey automation include sending personalized email campaigns based on customer behavior, triggering automated responses to customer inquiries, segmenting customers for targeted marketing efforts, and tracking customer interactions across multiple channels.

Businesses can start with customer journey automation by mapping out their current customer touchpoints and journeys, identifying pain points and opportunities for automation, selecting the right technology and tools for their needs, and gradually implementing automated processes with testing and optimization.

Some best practices for successful customer journey automation include defining clear goals and objectives, understanding customer needs and preferences, maintaining data accuracy and consistency, creating personalized and relevant interactions, monitoring and analyzing performance metrics, and continuously improving and adapting automated workflows.

Personalization is a crucial aspect of customer journey automation. It allows businesses to tailor interactions and content based on customer preferences, behavior, and demographics. By delivering personalized experiences at each touchpoint, businesses can enhance engagement, improve conversions, and boost customer satisfaction.

Customer journey automation is vital in fostering customer retention and loyalty. It enables businesses to develop ongoing customer relationships through relevant and timely interactions. By nurturing customers throughout their journey and providing personalized support and communications, businesses can build trust, strengthen loyalty, and increase customer lifetime value.

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Direct-to-consumer (DTC) brands revolutionized the global DTC fashion & apparel industry, propelling names like The Ordinary, Harry's, and Fenty Beauty to unprecedented heights. Yet, as we step into 2023, the landscape has undergone a seismic shift. NielsenIQ's illuminating analysis reveals a dip in U.S. DTC beauty sales, citing factors from an abundance of offerings to the impact of iOS 14 privacy regulations. However, amidst this evolution, pockets of growth and uncharted opportunities persist. The bath and shower sector saw a 6.3% surge, while cosmetics and nail grooming soared by 33.2% in the 12 months leading up to October 30, 2022. Fragrances and hair care too, experienced robust DTC growth potential, marking a resurgence in select segments. This transformation prompts a critical question: How can DTC brands survive and thrive amidst unprecedented competition? We offer a roadmap, highlighting the power of personalized products, diagnostic quizzes, subscription models, and sustainable offerings in capturing consumer loyalty. The rules governing the past no longer hold sway. In 2023, learning and mastering the new rules will be the linchpin of brand success in the ever-evolving world of DTC beauty marketing. What is a DTC Beauty Brand? A "DTC beauty brand" refers to a company that opts to sell its products directly to consumers, thereby minimizing overhead costs and bypassing outside influences involved in distribution or operations. This approach has enabled these brands to cultivate meaningful connections with potential customers through e-commerce platforms and social media, facilitating direct product sales. 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Sephora's Virtual Artist app, for instance, allows customers to virtually 'try on' products, enhancing engagement and reducing return rates. This technology has led to a 1.6x increase in purchase likelihood and a 2.7x surge in spending for app users compared to non-users. Hyper Personalization: It's not just about discounts; hyper personalization involves delivering precise messaging at pivotal moments in a customer's buying journey. ILIA Beauty, for example, saw a nearly twofold increase in email open rates by automating product replacement reminders based on individual purchasing intervals. This trend caters to evolving consumer preferences for tailored experiences. Beauty Subscription Boxes: The subscription box model is booming, particularly in the beauty sector, which witnessed a 20% surge in Average Order Value (AOV) in 2020. Birchbox, a pioneer in this space, offers curated monthly selections of personal care products for just $15. This trend addresses the need for consumers to sample diverse products without committing to full-sized versions. Influencers & Brand Partnerships: Social media remains a potent tool for beauty brands, driving them to utilise micro-influencers and forge strategic partnerships for broader reach. Besame Cosmetics' collaboration with Disney, recreating Mary Poppins' iconic lipstick, exemplifies the power of cultural tie-ins to resonate with diverse consumer segments. Diversity & Inclusion: Recognizing the importance of representation, consumers are increasingly drawn to brands that champion diversity and inclusivity. In fact, 63% of Americans are inspired by health and beauty brands that prioritize these values. Sephora's '15% Pledge' to allocate shelf space to black-owned beauty brands underscores the industry's shift towards greater inclusivity. AI-Driven Product Discovery: Artificial Intelligence is revolutionizing product personalization, with brands like Dcypher Cosmetics using AI in manufacturing to match products with consumers' unique skin tones. YSL's Rouge Sur Mesure device, powered by AI, creates thousands of custom lip shades, exemplifying the potential of technology in catering to individual preferences. These trends underscore a consumer-driven shift towards a more personalized, inclusive, and technologically enhanced beauty experience. Embracing these shifts can help DTC beauty brands meet and exceed the evolving expectations of their diverse customer base. Statistics on DTC Beauty In 2022, the DTC beauty market, encompassing skincare, fragrance, makeup, and haircare, saw a substantial surge, generating an impressive $430 billion in revenue. This meteoric rise is a testament to the industry's resilience, despite global economic challenges. What's more, this upward trajectory is poised to continue across all categories. Projections indicate that by 2027, the DTC beauty market is expected to reach a staggering $580 billion , with an estimated annual growth rate of 6 percent, aligning it with or even surpassing other prominent consumer segments like apparel, footwear, eyewear, pet care, and food and beverages. This buoyant DTC growth potential is drawing the attention of top-tier financiers and attracting A-list celebrities, all eager to partake in the flourishing DTC fashion & apparel industry. It's become a dynamic segment ripe for transformation, with an expanding range of products, channels, and markets on the horizon. This evolution will be chiefly driven by consumers, especially younger generations, who are reshaping their definitions of beauty and their perceptions of various elements, from sustainability to the role of influencers and key opinion leaders, to the significance of self-care. One of the remarkable trends within this landscape is the phenomenon of "premiumization." The premium beauty tier is anticipated to experience an impressive annual growth rate of 8 percent between 2022 and 2027, outpacing the 5 percent growth projected for mass beauty. Consumers are showing a proclivity for trading up and increasing their spending, particularly in fragrance and makeup. As the industry gears up for transformation, competition is expected to intensify. Independent brands that successfully entered the market over the past decade are now seeking to scale, while new challengers are also on the horizon. This heightened competition is prompting established brands and retailers to adapt. Responding to trend-driven dynamics, a significant 42 percent of consumers across key global markets express a keen interest in trying out new brands. E-commerce in the DTC beauty sector has witnessed a remarkable surge, nearly quadrupling between 2015 and 2022. Its current share exceeds 20 percent, with substantial room for further growth. This trajectory is attributed to several factors, including the expansion of beauty offerings by online giants like Amazon and Tmall, increased digital sophistication among direct-to-consumer players, and the growing significance of online channels for omnichannel retailers. E-commerce is expected to maintain its position as the fastest-growing sales channel, with a projected annual growth rate of 12 percent between 2022 and 2027. Nevertheless, traditional channels such as specialty retail, grocery retail, and drugstores are expected to experience a resurgence post-pandemic, driven by consumers' continued desire for in-store product discovery and trial. Strategic decisions regarding where to operate will be just as crucial as how to compete. Brands will need to reevaluate their global strategies and introduce greater nuance and tailoring to their approaches. Geographic diversification is poised to become more pivotal than ever. While China and the United States continue to wield substantial influence, individual brands may face tougher competition in these markets. This shift is opening up new opportunities in regions like the Middle East and India, presenting unique potential for specific categories and price tiers. This new paradigm will likely necessitate a diverse set of localized strategies. Overall, the DTC growth potential and market share of DTC beauty brands are poised for further expansion, driven by consumer preferences and dynamic market forces. Key players in the industry will need to navigate this evolving landscape strategically to maintain their positions and seize new opportunities on the horizon. Categories within DTC Beauty Skincare Challenges Product Differentiation: The skincare market is highly saturated, making it crucial for DTC brands to offer unique formulations or target specific skin concerns. Regulatory Compliance: Skincare products are subject to rigorous regulatory standards, necessitating compliance with various guidelines and certifications. Ingredient Transparency: Consumers increasingly demand transparency regarding ingredients, sourcing, and sustainability practices. Opportunities Personalization: Offering personalized skincare solutions through diagnostic tools and tailored product recommendations can set brands apart. Clean and Natural Formulations: There is a growing demand for clean, natural, and sustainable skincare products, presenting an opportunity for eco-conscious brands. Cosmetics Challenges Color Matching: Achieving accurate color representation online can be challenging, potentially leading to customer dissatisfaction upon receipt. Influencer Saturation: The cosmetics market is heavily influenced by beauty influencers, making it crucial for DTC brands to establish their unique voice. Seasonal Trends: Cosmetics trends can change rapidly, requiring brands to stay agile and responsive to consumer preferences. Opportunities Virtual Try-Ons: Utilizing AR and VR technology for virtual try-ons can enhance the online shopping experience and boost customer confidence. Inclusivity: Catering to diverse skin tones and preferences is essential to attract a wider customer base. Haircare Challenges Hair Type Variability: Haircare needs vary widely based on factors like hair type, texture, and specific concerns, necessitating a diverse product range. Efficacy Claims: Consumers are increasingly discerning about product claims, so brands must demonstrate the effectiveness of their formulations. Sustainability in Packaging: Haircare brands face pressure to adopt eco-friendly packaging solutions to reduce environmental impact. Opportunities Customization: Offering personalized haircare regimens based on individual needs and concerns can drive customer loyalty. Natural Ingredients: Embracing natural and organic ingredients aligns with consumer preferences for clean, sustainable products. Wellness Challenges Regulatory Considerations: Wellness products may have specific regulatory requirements, especially if they make health-related claims. Education and Trust: Consumers seek transparent information about the benefits and efficacy of wellness products, necessitating clear communication. Competitive Landscape: The wellness market is diverse and competitive, requiring brands to carve out a distinct value proposition. Opportunities Holistic Approach: Brands that offer a comprehensive range of wellness products, from supplements to self-care items, can cater to consumers seeking a holistic approach to well-being. Brand Partnerships: Collaborations with influencers or experts in the wellness space can lend credibility and expand reach. Growth Strategies for DTC Beauty Brands in 2023 Social and Paid Media Social media wields immense influence over consumers, especially in the beauty industry, with its whopping 71% impact on purchasing decisions. Optimizing social and paid media campaigns is paramount for beauty brands. The goal is to create an exceptionally personalized and exclusive experience for every visitor while maximizing the traffic generated. Here are four strategies to achieve this: UTM-Based Targeting Imagine tailoring your online presence to perfectly align with the content that enticed visitors to click through to your site. This approach involves meticulous synchronization between your social media, influencer collaborations, and advertising campaigns. Consider incorporating: Keywords from the post that lured them in. The enticing offer, whether it's a coupon code or a special gift. The product imagery used ensures continuity in visuals. Even the influencer's name enhances the connection. For instance, when using swipe-up links in stories, drive traffic to dedicated landing pages, which can even be full-page takeovers. These pages should prominently feature the referring influencer's name, image, and unique offer. This personalization deepens the visitor's emotional connection with your brand, making it an unforgettable experience. Tab—Click to Open Opt-Ins When it comes to engaging traffic from Instagram on your site, sometimes less interruption is more effective. Here's an innovative approach: implement a mobile traffic opt-in tab. This unobtrusive bubble stays discreetly at the corner of their screen, ready for them to explore whenever they're prepared. By not diverting their focus from your products, you maintain a seamless shopping experience. When they do click the tab, it effortlessly opens up a standard lead capture form for easy opt-ins, minimizing distractions. Limited Time/Exclusive Collaborations Beauty brands are increasingly launching mini-capsules inspired by their top influencers. This strategy works wonders for limited-edition products while aligning the influencer's dedicated audience with your brand. But why stop there? You can extend this approach beyond product releases. Consider streamlining the power of intelligent product recommendations. Create curated collections based on what these influencers use and recommend to their followers. Categorize and tag products as belonging to specific influencers. Then, seamlessly integrate these curated collections across your website. It's a strategy that fosters a deeper sense of connection between your audience and the influencers they admire. Audience Sync for Retargeting To truly supercharge your lead capture promotions, set up Audience Sync. This dynamic feature enables the automatic transmission of subscriber information to Google and Facebook audience managers. Why is this so powerful? It opens up a realm of possibilities, from retargeting specific audience segments to prospecting lookalike audiences. Showcasing additional creative content, such as social proof based on products previously browsed, is a masterstroke. It serves as a gentle nudge to move shoppers seamlessly down the conversion funnel, all while enhancing overall campaign performance. SEO For beauty brands, SEO Help DTC retail is crucial, especially with eCommerce sites featuring numerous product pages. Given that consumers are now 40% more open to trying new beauty products and brands post-pandemic, an impressive SEO Help DTC retail strategy is vital for maximizing brand visibility. Employing long-tail and semantic keywords in descriptions and images enhances the likelihood of dominating high-intent search results. Maintaining swift loading times and implementing a solid internal linking strategy is equally important. These factors collectively facilitate seamless navigation for shoppers, enhancing their overall experience and reducing bounce rates. Personalization For New Visitors: Homepage Bestsellers When a visitor is brand new to your site, making a strong first impression is crucial. The homepage serves as the digital storefront, and one of the most effective ways to captivate a potential customer is by showcasing your best-selling products. Strategically featuring your top-performing items helps you guide the traffic toward products with a proven track record. This not only boosts the chances of converting a first-time visitor but also minimizes the likelihood of them bouncing off without exploring further. For Returning Customers: Items Related To Past Purchases Or Abandoned Cart Contents Returning customers are an invaluable asset. They've already shown interest in your brand and products. To nurture this relationship, it's essential to provide them with tailored recommendations. Displaying items related to past purchases or products they've left behind in their cart is a gentle nudge toward conversion. It's a thoughtful touch that shows you value their preferences and are keen on making their shopping experience as seamless as possible. For Returning Visitors: Staff Favorites Engaging with returning visitors, especially those who tend to browse without making a purchase, requires a special approach. Consider introducing a "Staff Favorites" section. This unique messaging tactic establishes a personal connection by showcasing products that your team holds in high regard. This "expert" social proof can be the decisive factor that nudges a visitor towards making a purchase decision. It adds a human touch to the shopping experience, instilling trust and confidence in your brand. For VIP Customers: Early Access to New/Seasonal Products VIP customers are the backbone of any successful beauty brand. They deserve special treatment. Providing them with early access to new or seasonal products is a powerful strategy. This exclusive perk makes them feel valued and creates a sense of anticipation. To complement this, use backend tags to dynamically update the recommended products based on the season or new launches. It's a personalized touch that demonstrates your commitment to offering them the best and latest in beauty. Upon Add to Cart: Sample Options When a shopper adds a product to their cart, it's a prime moment to entice them further. Trigger a pop-up showcasing a carousel of free gifts or sample options. This adds value to their purchase and creates a sense of urgency. You're instilling a fear of missing out by emphasizing that they're receiving a complimentary gift. This subtle nudge towards conversion can significantly increase the chances of them completing the purchase. Retention Building strong customer relationships is key to creating brand loyalty, especially in the beauty and cosmetics industry. Implementing loyalty and subscription programs can be highly effective in transforming one-time buyers into loyal, returning customers. Subscription programs are particularly well-suited for the beauty industry due to the consumable nature of the products. Customers will eventually need replacements, making subscriptions a reliable source of recurring sales. While customers may not initially sign up for a subscription, targeting returning visitors with a pop-up offering a discount on their re-purchase when they subscribe can be a compelling incentive. In addition to subscriptions, loyalty programs play a crucial role in retaining customers. These programs focus on providing rewards and enhancing the overall brand experience. Offer perks like discounts, early access to products, seasonal savings, loyalty points, and birthday gifts to foster long-term customer retention. Consider introducing gamification elements to your loyalty program. This could include point systems that encourage specific behaviors, such as following your company on Instagram or referring friends. This approach not only engages customers but can also turn your VIP segment into micro-influencers, employing the power of word-of-mouth in the beauty industry. Creating a competitive leaderboard within your loyalty program based on lifetime spending can further enhance customer engagement. As customers spend more, they unlock progressively better benefits, creating a sense of exclusivity. Tangible benefits like free shipping and early access to sales can be as impactful as intangible benefits, such as feeling like a valued VIP. Use threshold banners to inform customers of how much they need to spend to reach the next tier, motivating them to make additional purchases. Lastly, implementing a sample strategy can be highly effective. Even in larger mini sizes, offering samples can encourage product discovery and diversify orders. This is particularly important in reducing barriers to purchase for customers who may be hesitant to commit to full-size products, especially if they are new to the brand. Gamify the sample experience by allowing customers to use their loyalty points to "purchase" exclusive minis or gain access to seasonal gifts before the general public. The possibilities for gamification in this area are limitless, as long as they align with what matters most to your customers, ultimately creating an enticing and irresistible experience. UGC Social proof stands as one of the most powerful tools to sway consumers' decisions. In fact, a notable 64% of shoppers actively seek out User-Generated Content (UGC) before committing to a purchase. For beauty and cosmetics brands, this dynamic is especially crucial, as customers typically require a wealth of information to confidently choose a product, often seeking the experiences of others who have used it. Using a UGC and reviews application like Okendo provides beauty brands with invaluable insights. Not only does it grant access to product attributes within reviews, but it also allows for the customization of these attributes for ratings. This means key selling points can be spotlighted, even if the reviewer didn't explicitly mention them. Furthermore, capturing additional information about the reviewer, such as skin type, concerns, and age, enhances conversions by helping new shoppers find reviews from individuals with similar characteristics. This alignment increases the likelihood of conversion, as potential buyers identify with someone who shares their profile. Taking things a step further, beauty brands can harness these ratings, reviews, and customer photos across various platforms. The cross-channel impact is maximized by showcasing them on social media, incorporating them into carousels on their website, and even featuring them in Google Shopping results. This multi-faceted approach bolsters buyer confidence by providing a diverse array of authentic perspectives. Reviews exemplify the power of "show versus tell" in DTC Performance marketing. They offer a platform for your brand to demonstrate how customers have experienced your products. These firsthand accounts can delve into transformations, and problem-solving successes and address specific concerns that may not have been covered in the product description itself. SMS and Email Building a customer database is essential for brand success. For brands, specific strategies can be employed to achieve maximum list growth. One approach involves a standard two-step lead capture process, where email information is collected on the first screen, followed by SMS details on the second. This technique, exemplified by our client BK Beauty, has proven highly effective. Offering staggered discounts (10% for email and 15% for SMS) and featuring a dynamic tab that displays the earned discount helped BK Beauty achieve remarkable results. In fact, an impressive 63% of new subscribers converted during the same session. For an alternative approach, consider staggering the opt-in process. Begin by collecting email opt-ins during the initial visit, and follow up with SMS later on. This method allows time to demonstrate value to the visitor. Sweetening the pot for SMS opt-ins with exclusive perks, such as early access to products or sales and additional loyalty points, can further incentivize participation. A full-page takeover strategy can create a sense of exclusivity and urgency. By "locking" a site or product page and collecting opt-ins for product release notifications, brands can generate high levels of anticipation and subscriber interest. Brick and Mortar An increasing number of digitally native direct-to-consumer brands are venturing into physical retail spaces, including well-known outlets like Sephora, Ulta, and Target. For brands considering or already pursuing this transition, it's imperative to bridge the online and in-store experiences for customers seamlessly. A powerful strategy involves utilizing geo-targeting technology to engage visitors who are on the verge of leaving your online platform. By identifying their location, you can provide them with valuable information about the nearest physical stores where your products are available. This approach is founded on the belief that some potential customers prefer to acquire their desired products immediately, even in an age of rapid shipping. As the trend of beauty brands making their mark on the shelves of major retailers continues to grow, employing such online-to-offline marketing tactics can yield substantial results. Integrating geo-targeting into your DTC Performance marketing approach will enhance convenience for customers seeking instant gratification and strengthen the connection between your digital presence and physical retail locations. This fusion of experiences fosters brand loyalty and facilitates a seamless transition for consumers who may want to explore your products in-store after discovering them online. Ultimately, this strategy capitalizes on the evolving nature of retail in the beauty industry, offering a strategic advantage for DTC brands looking to expand their reach and influence across multiple channels. As the lines between online and offline shopping continue to blur, utilizing geo-targeting to drive in-store traffic serves as a forward-thinking approach to amplifying your brand's presence in the ever-evolving beauty market. AI and VR Leading beauty companies are venturing beyond conventional approaches by harnessing the power of VR technology to craft immersive, digitally-native shopping environments. These 3D-rendered spaces allow online shoppers to explore and interact with products, creating an experience akin to walking through a physical store. The surge in popularity of virtual shopping was further amplified by the COVID-19 pandemic, which accelerated the adoption of innovative retail solutions. According to IDC, global spending on augmented reality (AR) and VR technologies in 2020 reached an estimated $18.8 billion, representing a remarkable 78.5% increase from the previous year. Virtual stores represent a paradigm shift in e-commerce, transcending static product catalogs to present dynamic, ever-evolving environments that closely mimic the immersive experience of a brick-and-mortar store. This evolution provides a significant competitive edge for online beauty brands, allowing them to engage customers more effectively and personally. A standout example is Charlotte Tilbury's Virtual Beauty Gifting Wonderland, unveiled in time for the 2021 holiday season. This virtual space allows consumers virtual beauty consultations and grants access to exclusive products. Moreover, it lets shoppers meet and shop with friends through video chat virtually, elevating the social aspect of the shopping experience. Influencer Marketing Influencers and beauty brands have forged a potent and mutually beneficial partnership. Sponsorships and gifted products serve as the foundation for content creation, including reviews and tutorials, which significantly drive online sales and engagement. Projections indicate that spending on influencer DTC Performance marketing will reach a substantial $15 billion by 2022 . Esteemed brands like Estée Lauder have adapted by allocating 75% of their marketing budget to beauty influencers. The outcomes are impressive. Beauty brands that invest in influencer marketing witness a remarkable ROI of $11.45 for every $1 spent, as reported by the British Beauty Council. For instance, Mielle Organics has perfected a micro-influencer strategy, collaborating with influencers who boast a smaller yet deeply engaged fanbase. They enlisted the support of natural hair advocate Tasha Jeana to endorse their Essentials Collection, yielding notable results. Future Trends in DTC Beauty Hyper-Personalization with AI and AR Today's consumers expect a personalized shopping experience, with 71% expressing this preference . Failing to meet this expectation can lead to frustration in over 75% of shoppers. The impact of personalization on customer loyalty is significant, as nearly 80% are more likely to make repeat purchases and recommend the brand if they receive a personalized experience. In the beauty industry, 58% of shoppers are inclined to buy from a business offering an online quiz for personalized product recommendations. Additionally, 45% are more likely to make a purchase if a virtual reality or AI experience allows them to try out a product online. Notable brands like Prose and Revieve are implementing high-tech personalization methods, achieving notable results. For instance, Prose's "Prose Hair Care" has seen a 200% increase in search volume over the past five years. JCPenney has also adopted AI skincare and AR makeup try-on experiences to enhance customer engagement. Moreover, companies like Pure Culture Beauty and Dr. Elsa Jungman are employing technology and scientific analysis to provide customized skincare solutions. The demand for such personalized approaches is evident in the 325% increase in search volume for "men’s skincare routine." Biotech Innovations with a Sustainability Focus The biotechnology trend in the beauty industry aligns seamlessly with the sustainability movement, with search volume for "sustainable beauty" surging by over 700% since 2019. Biotech methods are revolutionizing ingredient sourcing, allowing for sustainable mass production in labs, and circumventing land destruction and excessive water usage. Companies like Algenist and Evolved By Nature are leading the way by utilizing biotech to create sustainable compounds. For example, Algenist's patented ingredient, Alguronic Acid, derived from microscopic algae, has shown remarkable results in improving skin health. Major corporations like Unilever are also embracing biotech, partnering with firms like Geno to create sustainable alternatives to non-environmentally-friendly ingredients. Natural and Organic Ingredients Consumers are becoming increasingly conscious of the ingredients in their personal care products. With an average of 126 unique ingredients in just nine daily-use products, more than 65% are seeking environmentally-friendly brands, even if it means paying a premium. Search volume for "sustainable skincare" has surged by 566% in the past five years, reflecting a growing interest in clean, natural, and organic products. Brands like Walmart have responded by offering clean beauty shops, providing customers with a curated selection of products that align with their values. Beauty Sales and Brand Engagement on TikTok and Instagram Social media platforms like TikTok and Instagram are becoming significant avenues for beauty brand engagement and sales. Nearly half of all social media users are expected to make a purchase on a social platform this year, with an estimated annual spend of $800 per shopper on social commerce by 2024. TikTok and Instagram have proven to be particularly influential for beauty products. TikTok's engagement rate for beauty influencers is an impressive 7.52%, while Instagram follows closely at 1.87%. Brands like Truly Beauty have harnessed TikTok's power, amassing millions of followers and generating millions of views for their videos. User-generated content on Instagram has also demonstrated its impact, with beauty influencers driving significant product sales. Demand for Men's Beauty Products Social media, especially TikTok, has played a pivotal role in the rise of male grooming. The hashtag “men skincare” has garnered nearly 974 million views on TikTok, reflecting a growing interest in men's beauty products. Search volume for “men’s skincare routine” has increased by 325% in the past five years, and the market is expected to reach $110 billion by 2030. Brands like Atwater and Manscaped are capitalizing on this trend by providing tailored skincare solutions and a range of products catering to male consumers. Calls for More Diversity and Inclusion Consumers are demanding greater diversity and inclusivity in beauty advertising. While 43% of beauty consumers appreciate seeing diverse representations, nearly one-in-five still feel underrepresented. Brands like Fenty Beauty and Ami Cole are leading the way in inclusivity, offering extensive shade ranges and featuring models of various backgrounds. This push for diversity extends to racial inclusivity, with McKinsey reporting that Black consumers make up more than 11% of beauty spending, yet Black brands only account for 2.5% of industry revenue. Brands like Fenty Beauty and Ami Cole are helping to address this imbalance by providing inclusive product lines that cater to a broader range of consumers. In Conclusion The Direct-to-Consumer (DTC) beauty industry stands at the forefront of innovation, driven by an array of dynamic trends and consumer demands. To navigate this sphere, brands must adopt forward-thinking strategies. Moreover, embracing diversity and inclusion is not just an ethical imperative, but a strategic move towards a more inclusive and profitable future. Staying ahead of these trends and implementing effective strategies will be essential for brands looking to thrive in this competitive market. To explore how Saffron Edge can help your beauty brand employ these trends and strategies, visit our website. Elevate your brand, captivate your audience, and embrace the future of DTC beauty with us. ...

How can Artificial Intelligence enhance in-app personalization & customer retention?

Today, brands and businesses cannot ignore the increased usage of mobile phones and mobile apps. That is why working on only desktop-based access is no longer a relevant tactic for growth. Nowadays, businesses of all niches are coming up with mobile apps for generating revenue and bringing in more customers, and this might be the reason why there are currently 2.87 million apps available for download on Google Play. Source: Unsplash But do you think that just launching an app on Google Play or any other platform is enough, especially when the users are inundated with options? If your app slacks the necessary appeal, it can turn out to be an implication to your business reputation instead of acting as a catalyst for growth. To top it is the number of people (21% of people) abandoning an app just after one use. The only way to climb the ladder of success in the ocean of competition without becoming a one-time use app is to use the power of personalization. Although in-app personalization is not an easy task, it can be a practical approach with the right resources like AI. So, let's see how the power of AI is improving in-app personalization and increasing customer retention. The rise in the demand for in-app personalization With the market becoming cluttered and with so many options, customers are looking for a unique and convenient experience rather than going through the same mundane journey of purchasing a product, resulting in a shift to a trend where people prefer a personalized experience. Stats showing a rise in the demand for in-app personalization: More than 80% of the customers are more likely to buy from a brand that offers a personalized experience. 89% of the U.S marketers agree that personalization of their app has increased their revenue along 63% of smartphone users are more likely to purchase from an app that offers relevant recommendations 71% of consumers have an aversion to an impersonal shopping experience 58% of smartphone users felt more inclined toward those companies whose apps remembered who they were and their previous behavior. How is AI improving in-app personalization? Access to user personas in real-time One of the best things about AI is that it can comprehend demographical and behavioral data in a more detailed and less time-consuming manner than humans. It helps brands find out the type of content that will prove relevant for every person's mobile app use. Yes, you read that correctly, every single mobile app user. Source: Unsplash You can bid farewell to the not-so-effective yet cumbersome manual segmentation of users into unchanging personas. In such a system, the segmentation done based on the data collected would have already shifted when you accessed the user personas. But it doesn't matter whether you have 100 mobile users or 1000 mobile users, AI can learn about each one of them on an ongoing basis, and it will also keep you updated about which persona the user currently fits. Personalized and apt content delivery Not keeping the audience engaged through the mobile app might be why every 3 out of 10 apps get deleted within 30 days of installation. You might be planning to deliver new and updated content through the mobile app daily to keep occupying space on the user's mobile. However, if that content is irrelevant and un-targeted, then all your efforts will go astray. Personalization is the only way to drive app engagement. Remember that you are fighting to get a user's attention who gets 65-80 notifications on his mobile every day. So, the user will undoubtedly lose track of the generic content in the ocean of messages. Source: Unsplash AI comes with the power of digesting a vast amount of data about every individual through their in-app behavior. Based on this data, the same AI can make relevant recommendations. Home screen personalization in apps The home screen is the most critical aspect of any mobile app, and it is usually the go-to screen for users to navigate. But instead of relying on the one-size-fits-all approach with the home screen app, you can use AI to add personalization in this vital section of your app as well. Based on the app category and the quality and quantity of the demographic data during the first-time onboarding flow, you can build a personalized home screen experience for the user and make them succumb to staying engaged with the app. And this will never be a time-consuming task since AI will be helping you with garnering and analysis of data. For example, if you have launched a music-based app, you use data like favorite songs, name, age, and gender of the user to build a first-degree personalized list of music recommendations on the home screen. Customize the navigational experience In addition to personalizing the browsing, user searches, and click behavior, you can also work towards personalizing the users' navigational experience or, in simple language, customizing how the users navigate on the app. AI can harness insights from parameters like geolocation, weather, timezone, buyer persona, gender, and then personalize graphics, CTAs, banner images, products, and trending offers to give a unique navigational experience to the user. AI can also leverage the most common path towards conversion for optimizing the navigational journey. It can also identify those aspects of the app that remained unused or that might be hampering the navigational journey of the user. Improving the timing The biggest perpetrator of your mobile app can be too many notifications being sent at the wrong time, as 28% of the users delete an app just because it sends them too many notifications. A customer might love to hear that they will get 20% off on their favorite jacket that they have put into the 'For Later' category, but such notification will be of no use if sent at 3 AM in the morning. That being said, this can be a quick turn-off for someone even when sent at 10 AM if the person is doing night shifts. That is where AI comes into the picture. By analyzing the user behavior and how and when they have interacted with a notification, AI can decide on an optimal time to send notifications that will have more chances of being clicked by the user. Takeaways AI can do wonders for mobile apps, but personalization is the biggest perk of incorporating AI in mobile apps. With AI, you can take the in-app experience to the next level, increasing customer engagement and boosting customer retention rate. Of course, the incorporation of AI in mobile apps has its limitation, and it is only as good as the amount of data it comprehends. Still, you can avoid a lot of guesswork and manual workload from your mobile app marketing by using AI. For more information, feel free to get in touch with our experts. ...

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