20 May 2017 | beautystorebusiness.com

Cutting-edge technologies that provide an enhanced customer experience.

by Manyesha Batist

Imagine a beauty store where customers are greeted by a robot that offers to direct them to specific products and answers their detailed questions. Imagine an

online beauty store where customers have no need to go in-store to test products because its augmented-reality system allows them to test products without

leaving the comfort of their home. And so they digitally try on and then purchase their products, confident that they will complement their skin tone. Imagine your beauty store being equipped to pick up on customers’ behaviors in ways that help you better support their shopping habits and product considerations.

22 May 2017 | beautystorebusiness.com

Enter “user experience design,” also

called UX, which includes today’s retail

technology. The goal of UX within the

beauty retail space is to enhance customer

experience, whether online or in-store, in

ways that bring greater ease and delight

to the shopping experience. It can involve

reducing the number of clicks it takes for

a customer to make an online purchase

to equipping your brick-and-mortar with

digital signage and touchscreen kiosks.

There are far too many retail technolo-

gies to list them all here, and the options

continue to grow and evolve. In this

introduction to UX, we cover five of

today’s most relevant retail technology

categories for your beauty store coming

in the near future.

AUGMENTED REALITYAugmented reality, also known as “AR,”

is a technology that allows customers

to try on products digitally and make

purchases with confidence before ever

actually touching the product. AR is dif-

ferent from virtual reality in that virtual

reality produces computer-generated or

artificial environments. AR, on the other

hand, overlays one’s actual physical

environment with digital data. ModiFace

apps, for example, use patented AR

technology to allow users to experience

makeup, hair and skin options in live 3D.

As users look into the app, they can see

how specific colors of lipstick or eye

shadow, for example, blend with their

skin tone, much like what they would

see while applying makeup in the mirror.

“At the end of the day, it’s a worthy

investment because augmented reality

has been proven to increase sales for

retailers,” says Lindsay Boyajian, chief

marketing officer for Augment, which

offers augmented reality solutions.

“ModiFace reports that its virtual makeup

mirror is increasing sales by 31 percent.”

AR enhances customer experience by

providing personalized interactions with

products, such as matching foundations

to skin tone. It also keeps customers

engaged with a retailer’s product, such as

when a customer tries multiple lipsticks—

which is likely to lead to a larger pur-

chase. “For retailers, augmented reality

helps drive online and in-store conver-

sions,” adds Boyajian. And for shoppers,

“it also removes the headache of having

to return products because something

online looked different when it arrived

at their door.”

DIGITAL DISPLAY & TOUCH-BASED SOLUTIONSSpeaking of customer interaction and

engagement, digital signage and touch-

based systems also encourage customer

attention and foster interaction. An illustra-

tion of these types of interactive solutions

might look like the following: A customer

picks up a lipstick, which triggers a digital

screen to present options she may want to

explore, such as product information or an

index of topics or even videos demonstrat-

ing how the lipstick can be applied as a

gloss, eye shadow or even blush. Such

technologies help foster a greater depth of

knowledge and experience with products.

“I think this is probably one of the

best ways to use technology in beauty

retailing. Up to now, we’ve really only

had printed signage or takeaways that

could show some benefit; but by using

interactive touch systems, we can show

the whole story of what a product can do

for customers long-term,” says Nathan-

iel Zich, president of Interactive Design

Labs, which designs, engineers, installs

and supports digital and touch systems.

Interactive technologies also allow

retailers to discover information about

customers that they weren’t necessarily

interested in sharing. “[We] integrate

with shoppers’ natural behavior, which is

to pick up a product. (Touching a product

actually makes them 40 percent to 60 per-

cent more likely to purchase),” says Jamie

Mandor-Glassman, vice president of mar-

keting and business development at Perch

Interactive, which offers interactive retail

display technology. “Perch is able to read

customers’ natural interaction with the

product, respond with dynamic content

and then report out metrics on everything

customers are doing.”

APPSIt’s plausible that every single one of

your customers has downloaded mul-

tiple apps and uses at least one of

those downloads regularly. Apps allow

retailers to interact with their custom-

ers both in and outside of the store. For

example, certain apps can be used to

notify customers of in-store promotions

as they enter the store. Some apps can

even tailor promotions to the individual

customer. So, if Customer A generally

buys a specific skincare product from

your store, the app will notify her of pro-

motions specific to her purchase history.

“Customer engagement leads to cus-

tomer retention,” says Kevin Schrage,

digital marketing manager for Bizness

Apps, which builds apps for small busi-

nesses, including features such as loyalty

programs, health and beauty diagnostic

tools, reviews and more. “According to

Rosetta Consulting, highly engaged cus-

tomers buy 90 percent more often and

spend 60 percent more per transaction.

Mobile apps allow you to keep custom-

ers engaged with loyalty programs, push

notifications, targeted promotions and

more. You can also provide them with

information about your products and

services right at their fingertips.”

Engaging the customer includes

delighting the customer—one of the

characteristics of UX design—and this

is what the Chic Sketch app does for

customers. The app was cofounded

by Emily Brickel Edelson, a published

fashion illustrator, fashion designer and

entrepreneur, and Jordan Edelson, who

is also founder and CEO of Appetizer

Mobile, a NYC-based app develop-

ment firm and the parent company

behind Chic Sketch. The app gives cus-

tomers an opportunity to receive their

very own beauty illustration, whether

through an uploaded picture or via

“striking a pose” at a live in-store event.

The sketch is hand drawn on a digital

tablet and time-lapse video allows the

customer to watch the stroke-by-stroke

creation of her beauty illustration as it’s

being drawn by the fashion illustrator.

But don’t let the fun fool you. This app

has the power to lure customers into

your store and have them promote your

products. As an example, Sephora and

Allure partnered with Chic Sketch to

sketch customers who got their makeup

done with a new Lancôme product.

“Chic Sketch is changing the game in

the way beauty products are shared on

social media. Instead of a more forced

and sometimes sponsored YouTube post,

guests are sharing their beauty looks in

YouCam’s application is a good example of augmented reality where customers can see what the makeup looks like on themselves before they make a purchase.

Example of Chic Sketch fashion illustration.

24 May 2017 | beautystorebusiness.com

new and genuine ways. Everyone does

the selfie to promote product; we just

elevate it!” say the Edelsons.

Perfect Corp.’s YouCam Makeup app,

on the other hand, aims to increase

the trial rate of beauty retailers’ prod-

ucts, extend their social reach and gain

deeper insights about customers via its

app, which uses augmented reality and

facial recognition technologies to give

customers real-time makeovers on their

mobile devices. “Our platform also helps

beauty brands extend their social reach

as users can create their own unique

makeup looks using virtualized branded

products, then share that complete look

socially for others to try on their own

faces,” says Adam Gam, vice president

of marketing for Perfect Corp.

Some larger beauty retailers are

already on board with these advanced

technologies and are using them to

their advantage. The Sephora app,

which is among the most popular and

effective beauty retailer apps, allows

customers to shop at their convenience

via mobile, book in-store appointments,

try on beauty products digitally, receive

exclusive promotions and peruse

beauty content for inspiration. Its com-

prehensive features both delight and

inform its customers.

KIOSKSAllowing customers the immediate grati-

fication of information at a moment’s

notice, store kiosks may be a worthy

investment. “Kiosks can provide a wide

array of information, from basic pricing

to product pairings and style guides to

virtual try-ons. They enable retailers and

brands to repurpose rich web content

and enable self-service or guided selling

techniques,” says Alex Goodwin, vice

president of marketing and cofounder of

Aila Technologies, which offers a com-

prehensive set of in-store devices, from

associate handhelds to customer-facing

kiosks. “Virtual try-ons using augmented

reality not only reduce the amount of

sampling-related product shrinkage, but

can also increase cart size by recom-

mending complementary products.” Gam

of Perfect, which offers the YouCam

Makeup Kiosk, adds, “The self-serve

function allows retailers to serve more

customers during peak times.”

STEP INTO THE RETAILING FUTURE

Here’s a list of companies that are ready to set you up with several of the technologies featured in this article.

Aila Technologies offers a comprehensive set of in-store devices, from associate handhelds to customer-facing

kiosks. All of its products leverage Apple’s familiar device and are designed to be aesthetically pleasing to fit within

a beauty store, but durable enough to withstand real-world use. For more information, visit ailatech.com.

Appetizer Mobile can help you develop a customized mobile app. It is an award-winning digital and mobile

development agency that also offers consulting and marketing. It helps businesses generate new revenue channels

and maximize their ROI. For more information, visit appetizermobile.com.

Augment is marketed as offering the only augmented reality (AR) e-commerce software development kit (SDK)

solutions available for both native mobile app and web integrations. The solutions allow shoppers to try products

in life-like AR at home before buying. Augment’s SDK solutions allow companies to embed AR product visualization

into their existing e-commerce mobile apps or websites. For more information, visit augment.com.

Bizness Apps builds mobile apps for small businesses. Its offerings include drag-and-drop app-building features

loaded with options, including loyalty programs, push notifications, booking systems, health and beauty diagnostic

tools, an online store, reviews and content/gallery features. For more information, visit biznessapps.com.

Chic Sketch mobile application allows retailers to offer customers added value during store events

and promotions. The app provides customers with an opportunity to upload a photo of their beauty

look to be sketched by Chic Sketch illustrators through which a digital beauty sketch is made

available. Customers can then enjoy their digital beauty sketch and share it with friends and

family via social networks, which in turn fosters an emotional connection with retail brands.

Chic Sketch has worked with beauty brands—including Sephora, L’Oréal and Lancôme.

Beauty Store Business readers get 10 percent off their purchase throughout May by

using the code BeautyBiz10. For more information, contact info@chicsketch.com or

visit chicsketch.com.

Interactive Design Labs (IDL) designs, engineers, installs and supports digital and

touch systems. Some of its offerings include digital signage, touchscreen kiosks and interactive displays. IDL also

assists in design creation from the ground up or troubleshoots design difficulties. For more information, visit

interactivedesignlabs.com.

Perch Interactive is a flexible, interactive retail display technology that unites digital content with physical products

in-store to engage customers and analyze their behavior. Its offering allows retailer and brands to bring highly

sought-out information, such as product details, reviews, complementary products, how-to videos and much more,

into the store environment in a seamless, cost-effective way. For more information, visit perchinteractive.com.

Perfect Corp.’s YouCam Makeup app features augmented technology, live

3D virtual makeup and real-life color and natural makeup effects on video.

The company helps retailers increase their trial rate for products, extend

their social reach and learn deeper insights about customers. Retailers

interested in trialing the app can download it for free: http://bit.ly/225R9f7.

For more information, contact wayne_liu@perfectcorp.com or visit

perfectcorp.com.

RetailNext is an in-store analytics provider, delivering insights such as which part of the store customers are

most drawn to and what percentage of people walk by a fixture/area and dwell there. Its patented platform uses

best-in-class video analytics, Wi-Fi detection of mobile devices (including Bluetooth), data from

point-of-sale systems and other sources to inform retailers about how customers engage with

their stores. For more information, visit retailnext.net.

Stella Connect is a tool that enables brands to collect real-time feedback after every customer

interaction. The product works by triggering feedback requests after phone, email or live chat

interactions. For more information, visit stellaservice.com.

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26 May 2017 | beautystorebusiness.com

ANALYTICSAnalytics tools, whether via mobile,

kiosk or some other means, equip retail-

ers with the information they need to

draw customers back to their stores

again and again.

“Having a tool that constantly captures

customer feedback, while simultaneously

creating deeper customer connections is

important for beauty brands focused on

driving repeat purchase and long-term

customer loyalty,” says Alex Vlasto, vice

president of marketing for StellaService,

which offers Stella Connect, a tool that

enables brands to collect real-time feed-

back from customer interactions. Stella

Connect gathers customer information

via feedback requests that are triggered

by phone, email or live interactions with

customers. “Subjective insights from

customer feedback, for example, can

be used to help develop training pro-

grams for front-line team members,”

adds Vlasto.

RetailNext, an in-store analytics pro-

vider, uses Interior Analytics to show

retailers what areas of the store cus-

tomers are most drawn to and track

the percentage of people who walk by

a fixture or area and dwell there. “We

can also map SKUs to fixtures and get

dwell conversion, which is the number

of times a SKU is purchased divided by

the number of times someone dwelled

at the SKU’s location. This can point

out opportunities with the product.”

This type of information helps retailers

determine which products to dedicate

limited “real estate” to, adds one of

RetailNext’s directors of retail consult-

ing, Lauren Bitar.

THE EVOLUTION OF BEAUTY RETAILINGToday’s beauty consumer is in constant

interaction with technology, via a mobile

phone, laptop computer or another con-

nected device. She relies on its con-

venience and immediate gratification.

And she depends on it for the expansive

information it offers her. All of its “smart”

features save her time, money and

energy. And retail technologies offer

her those same benefits. They enhance

her shopping experience. Beauty retailers

are no longer competing for just product

RetailNext’s in-store analytics provides retailers with valuable information determining how customers engage with their stores.

“Having a tool that constantly captures customer feedback is important for beauty brands focused on driving repeat purchase

and long-term customer loyalty.”Alex Vlasto, Vice President of Marketing for StellaService

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28 May 2017 | beautystorebusiness.com

offerings; they’re competing for customer

experience—to see who can deliver the

experience that keeps beauty customers

coming back for more.

“Customers have more choice now

than ever,” says Cos Bar CEO David

Olsen. “They are smart, they are savvy

and they have high expectations. It’s

difficult to get a new customer but very

easy to lose a customer. So for Cos Bar,

having the best-in-class omnichannel

experience is critical to our success and

is part of our DNA.” The beauty retailer

has been staying ahead of the curve. It’s

currently testing out Stella Connect in its

stores and is in the process of rolling out

RetailNext into its entire fleet. “As we

grow, it’s important for us to be armed

with data to better inform our strategies

and decision-making,” says Olsen. Cos

Bar is also upgrading its mobile checkout

and has plans to integrate touchscreens

with product recommendations.

THE FUTURE

Remember the pictures painted for you

at the beginning of this article, detailing

a beauty store with a welcoming robot

and customers who could test products

without leaving their home? Well, that’s

elementary compared to Zich of Interac-

tive Design Labs’ vision of the future of

beauty retailing. Imagine this: As you

walk into the store, your phone recog-

nizes that you’ve visited a store that’s

connected to an app on your smart-

phone. The app pushes a notification to

the home screen of your phone, letting

you know that there’s currently a promo-

tion on the product you typically buy.

You walk through an aisle of haircare

products with a touchscreen that’s play-

ing a loop of a woman’s hair and a timer

showing the difference in color treatment.

As you stop to watch, it says: “Watch it

happen to your hair in real time.”

A small camera on the top of the unit

begins to track your motion and applies

a color filter to be able to see how your

hair could look with the treatment. You

can change the colors and shades of your

hair. At the bottom right, there’s a tab to

view a current special that’s running. You

can’t resist trying the product out, so you

add it to your basket and head to your

original product destination.

As you walk toward the point of sale

(POS), you notice a small digital display

for a new sunscreen that loops through

the ways that the product protects your

skin. You stop and watch the video and

grab a product sample.

Minutes later, you’re at the register

with extra products in hand, checking

out on a POS system that is tracking

those products for which you’ll receive

an email two weeks later (from your

sign-up at your last visit) reminding you

that you might be out of those products

and that there’s a “bundle discount”

waiting for you.

If the system detects that the email

has not been opened, a text message is

sent letting you know that you might be

out of those products, and it links you to

the nearest store to purchase more.

There’s your beauty-retailing future. ■

Manyesha Batist is a freelance journalist

based in Denver, CO.

Stella Connect collects real-time feedback

after customer interactions.

Visit demertbrands.com or call us at 1.813.903.0434

PERFECTING BEAUTIFUL HAIR