beauty ecommerce

AI | Growing your Ecommerce Beauty or Personal Care Brand

Things are looking rosy for ecommerce beauty and personal care businesses. Statista reports that the global skincare market is projected to grow to $180B by 2024. On top of that online and other non-store sales are expected to reach between $1.14 trillion and $1.19 trillion this year.

How can growing businesses in this space take advantage of the momentum and set their businesses up for success? Let’s take a look at four strategies for growing your ecommerce beauty or personal care business.

Increase Your Marketing Efficiency and Program Effectiveness 

Working smarter, not harder, and improving your marketing programs are two key ways to support your brand’s growth, and AI-enabled marketing automation provides strong support for ecommerce beauty and personal care brands. Nurturing a strong brand relationship is critical, and the predictive power of AI and machine learning can help you provide the level of personalization your customers expect, while also driving conversions.

For example, BURST, an oral care brand, saw a 26% increase in the conversion rate for new low intent customers, and a 10% increase in conversions for customers in the “Subscriber Abandon” stage after implementing an AI-enabled marketing automation solution. 

As a marketer or business owner, you can boost your efficiency and gain important insights from this type of solution. You can hand some of your rote marketing tasks, such as setting up email segments, over to the platform,  and put the power of your data and predictive analytics to work for you to drive leads and create highly personalized customer experiences.

Learn how AI-enabled marketing automation can improve your efficiency and program effectiveness, and see ReSci in action with a customized demo.

Consider a Subscription Model

The subscription ecommerce market is growing rapidly, and subscription models are used for various categories, including beauty products, pet food, razors, meal kits, apparel, and vitamins. Some big players have entered this market, including P&G (Gillette on Demand) and Walmart (Beauty Box). Customers enjoy the convenience, personalization, and sometimes lower costs available with subscriptions, but the challenge with this model is potentially high churn rates. You will want to provide optimal customer experiences and employ robust retention strategies. 

Did you know that Retention Science offers unique support for just-in-time replenishment?  ReSci’s “buy again” stage predicts when each customer’s product will run out and triggers an email to remind them to buy it again. This level of personalization keeps customers engaged and increases customer lifetime value. Below you will see a chart from McKinsey & Company of the top ten sites with the highest number of subscribers by gender. 

subscription model

Here are the three main types of subscription models:

  • Replenishment (offers savings in terms of money and time): Amazon Subscribe & Save and Dollar Shave Club 
  • Curation (offers variety and the element of surprise): Birchbox and Stitch Fix
  • Access (offers exclusive access): Thrive Market and JustFab

If you consider a subscription model, assess the various types and which one might fit best with your brand and business. You will also want to think about subscription models in the context of your overall marketing strategy and programs and make any necessary adjustments.

Develop an SMS Marketing Program

Have you considered using SMS marketing to boost conversions and retention for your beauty or personal care brand? Believe it or not, according to Gartner, SMS open and response rates can be as high as 98% and 45%, respectively. As for driving sales, major beauty brands like Wander Beauty and Supergoop have seen the channel’s effectiveness.

It’s a good idea to think about your messaging strategy any time you extend your marketing into a new channel. It could be a good time to experiment, and even drive customers to other websites if your customers might find the content valuable. Kopari, a beauty and personal care brand, created and sent a Spotify playlist to subscribers. That link had a 20% higher click-through compared to the other messages sent during the same quarter, but what’s more important is that the link to the brand’s website, also included in the message, drove the highest number of orders for the quarter.

Build Out Your Social Commerce Strategy

We would be remiss if we didn’t cover social commerce. It continues to be a very important channel for product and brand discovery and also for discretionary purchases. Omnichannel marketing continues to grow, and it’s important for most if not all brands to engage with customers across multiple channels, including social media. 

Providing an engaging presence on social media allows your customers to meet your brand many times over multiple channels before making a purchase. With Gen Z’s incredible buying power, and high spends on beauty products, it’s important to meet them where they are spending their time.

Social media, and in particular, Instagram, can be very effective at influencing buying decisions. Customers can “shop the look” on Pinterest, and Facebook allows users to shop on the brand pages. It can also be useful for creating a sense of community, and building trust in the brand. 

Grow Your Online Beauty and Personal Care Sales

You can take advantage of key strategies and opportunities to grow your online beauty or personal care brand. Whether it’s exploring the effectiveness of SMS marketing for your brand, implementing an AI-enabled marketing platform, examining various subscription models, or growing your social commerce program, it’s possible to bring your ecommerce beauty or personal care business to a new level of success. 

Download Data-driven marketing guide

ReSci is a team of marketers and data scientists on a mission to democratize AI. We make powerful recommendations and predictions accessible to brands.

Request a demo


Did you find this useful? Share it on social media.