How Retailers Like Sephora Drive Conversion Using Personalized Recommendations
From PSFK's Shopper Data Debrief, here's how leading retailers like Walgreens and more are leveraging next-gen machine vision to learn and analyze shopper patterns
Consumers today have access to a greater array of goods and services than ever before. Paradoxically, this can make it more difficult to make a purchase decision. As a result, consumers are seeking help navigating these choices through hyper-personalized recommendations based on their individual needs and preferences.
Retailers are leveraging in-store AR and visual recognition technologies in order to provide targeted recommendations and foster moments of discovery and delight by bridging the physical and digital worlds. Shoppers are able to experiment with products through virtual try on, which reduces return rates, while also providing the retailer with valuable data about product interactions. Accordingly, here's how top brands are leveraging interactive technology in order to gain consumer insight:
YouCam For Business
AR developer Perfect created the YouCam For Business app, which functions as an in-store mirror that uses AR to let beauty shoppers experiment with over 100 beauty products, making it easier and less messy than trying on actual makeup. The app contains AI-powered features, such as Advanced AI Skin Analysis, AI Smart Shade Foundation Finder and 360° Live Hair Color Tryouts to help shoppers easily find the right products for their needs. The app includes a fully integrated content management system that makes it easy for retailers to analyze the shopper data that it collects.
Pharmacy retailer Walgreens has partnered with technology startup Cooler Screens to pilot a new line of coolers equipped with camera and face-detection software that can determine shoppers’ gender and age as well as the weather and what’s in their cart. The technology will help retailers gather demographic information, know what’s selling and plan quicker restocking, and allow brands that partner with Walgreens to serve targeted ads. The cooler does not use facial recognition technology and does not identify shoppers; instead, the camera uses AI to make general inferences about their age and gender.
Image source: stock photos from Trong Nguyen/Shutterstock
Beauty retailer Sephora has installed a digital mirror in its Madrid flagship store that can deliver personalized recommendations to shoppers. The mirror uses AI to detect information about the person looking into it, such as gender, age and style, in order to automatically deliver hyper-personalized recommendations for makeup and skincare products. In addition to shopper data, the mirror uses real-time contextual data, such as local weather and bestselling items, to inform its recommendations. Shoppers are given a QR code to easily locate and purchase the items in store or purchase online.
91% of consumers are more likely to shop with brands who recognize, remember and provide relevant offers and recommendations. For extensive insight into the many ways that contemporary brands are unlocking data within their physical footprints, download PSFK's Shopper Data Debrief, out now.
The Shopper Data Debrief by business intelligence service PSFK outlines how retailers can leverage new tools to capture shopper data in the physical store, creating a mutually beneficial value exchange that allows them to refine operations and offer a more personalized in-store experience. This report is part of a series of reports focusing on retail innovation and customer experience to inspire the members of our business intelligence services.
Lead image: stock photos from Jeff Bukowski/Shutterstock