Reducing the noise around decision-making with simpler experiences in beauty

Uncertain times, squeezed wallets and overwhelming marketing noise make decision-making challenging for consumers. And beauty companies are paying the price—our recent survey found 79% of consumers walk away from a beauty purchase because the risk and cost of making the wrong choice is too high (1). For a category that is rich with options, simplifying the decision-making process in beauty is crucial to drive loyalty and achieve growth.?

The complexity of decision-making is impacting people’s confidence in their beauty purchase decisions??

With a variety of beauty products available in the market, consumers must consider a myriad of factors such as skin type, ingredients, appropriate usage and expert recommendations to make the right choice for them?

Consumers are hungry for fact-based guidance to make informed purchase decisions. Google searches for “expert” or “dermatologist” related to beauty products are up 67% since 2020. Over the past two years, searches relating to skin type such as “moisturizer for oily skin” have become increasingly common. What’s motivating this need? Consumers find it difficult to evaluate and compare purchase options — most (72%) find this hard because metrics and terminology aren’t consistent. So much so that 78% are unsure whether a product will even deliver on its promises (2).?

Additionally, 24% of consumers are put off by unreliable or conflicting recommendations and reviews, which adds to the complexity of making an informed decision.?

The complexity of decision-making is having a profound impact on confidence levels. Surprisingly, consumers feel equally uncertain when purchasing everyday items like moisturizers as they do when investing in high-stakes products such as washing machines or laptops.?

Factors influencing purchasing decisions: Why consumers walk away?

With a plethora of beauty products available, the fear of wasting money on an unsuitable product can be daunting. This concern is reflected in the statistics. Thirty percent of consumers cited the risk and cost of making the wrong choice as the main reason for walking away.??

A significant portion of consumers, 23%, reported feeling overwhelmed or frustrated by the effort required to make the right choice, leading them to abandon their purchases. This percentage represents the highest proportion of consumers across various categories who feel this way. The lack of purchase protection, including refunds and insurance, deters 21% of consumers, while 14% do not trust that they will receive the quality or experience they are paying for. These factors together lead consumers to abandon their purchases altogether, underscoring the need for a streamlined consumer journey.??

Generative AI can help. Here’s how.?

Generative AI has the potential to revolutionize the way beauty consumers shop by leveraging advanced algorithms to understand and predict consumer behaviors and preferences. The technology can analyze vast amounts of data quickly and accurately, identifying patterns that may not be immediately obvious.?

By doing so, it can suggest beauty products that consumers are likely to enjoy but might not have discovered on their own. This not only enhances the purchasing experience but also helps beauty brands by increasing customer satisfaction and loyalty.?

The good news is that fifty-six% of beauty consumers express a willingness to utilize generative AI-powered tools, provided they understand its functionality. Interestingly, our study revealed that the average beauty consumer trusts AI as much as they trust in-store staff.?

Leveraging generative AI to reinvent 3 key phases of the consumer journey??

Beauty brands have an opportunity to make significant shifts throughout the consumer journey to redefine decision-making processes and strengthen the relationship between consumers and brands, leveraging the power of generative AI.?

01 Discovery?

Generative AI fast-tracks the discovery process for consumers, reducing the overwhelm and workload typically faced at the start of their purchase journey. AI solutions excel not only in reliability and integrity but also in competency and empathy, catering to individual needs effectively.?

Generative AI technologies can anticipate individual needs and deliver targeted content. This means consumers are provided options that are relevant to their unique preferences and requirements. By filtering out the noise of irrelevant information and focusing on what truly matters to the consumer, AI enables consumers to make informed choices with ease. Thus, enhancing consumer confidence and satisfaction.?

?02 Conversion??

Generative AI agents are designed to craft personalized experiences that effectively influence consumer behavior. The key differentiator lies in their empathetic approach. These agents prioritize a deep understanding of consumers' preferences, goals, likes and dislikes. They continually seek feedback to refine and enhance their interactions, ensuring they evolve with consumer needs.??

To mitigate bias, AI agents utilize a diverse range of information and data points beyond just company or brand data, ensuring a balanced perspective in their recommendations. They also possess the ability to remember past purchases, understand budget constraints and manage tasks efficiently. By offering a variety of options tailored to individual preferences and requirements, generative AI agents enable hyper-personalization to simplify decision-making processes.??

03 Loyalty?

Generative AI agents can analyze past purchases, browsing history and consumer preferences to offer personalized advice through AI-personas or real-life employee interactions. This level of personalization ensures that consumers feel understood and valued, increasing their satisfaction and loyalty to a brand.?

For example, renowned beauty company, Shiseido created personalized beauty experiences to build trust and earn loyalty?

Shiseido is dedicated to crafting personalized beauty experiences for each customer. By integrating both online and offline consumer data histories, the company offers personalized social content. This streamlined approach makes it simpler and quicker for consumers to discover the latest trends, access tailored services and purchase their favorite products.?

Moving a step forward?

As generative AI evolves, its role in transforming the beauty industry landscape promises to create more informed, confident consumers and more resilient, competitive brands. Leading beauty brands already recognize the power of generative AI to revolutionize the consumer journey. Act now, take the lead to reinvent the consumer journey and set new benchmarks for consumer-centricity in the beauty industry.??

Read more about how beauty brands can cut through the noise in consumer experience and deliver simpler experiences to drive loyalty and achieve breakthrough growth.???

References:??

1. Accenture Consumer Pulse Research 2024?

1. https://www.accenture.com/no-en/insights/consulting/consumer-goods-cutting-through-noise?

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