AI, Hit or Miss?
Within changing dynamics of consumer behavior and utilization of technology, implementation of artificial intelligence is becoming a prerequisite for sustaining company’s competitive advantage. With 71% of marketers showing interest in using technology for personalization, artificial intelligence would be used on more frequent basis given recent circumstances of businesses being reliant on technology as the only way to communicate with their customers.
Digital First Approach Never Misses
Sephora has been adapting digital first approach by incorporating natural language processing, machine learning and computer vision even prior to the pandemic, which proved the reliance on digital economy is inevitable. Sephora’s integration of innovative technology solutions illustrates brand’s emphasis and prioritization of customer shopping experience, which is an essential part of brand perception’s framework.
Being listed as the top retail specialty brand by Gartner based on Gartner L2 Digital IQ index, Sephora illustrates how brand’s acceptance of digital era and embracement of innovation lead to the company’s sustainability in the long-run, especially during unprecedented times.
AI is In Sephora’s DNA
Introduction of Virtual Artist tool, which not only provides a close proximity fit via visual representation of how certain products would look on customer’s face prior to purchase, but also utilizes AI technology to generate recommendations of the most compatible shades for the individual from Sephora’s expansive inventory, demonstrates brand’s attempt to optimize B2C interactions within multiple touchpoints.
The usage of exclusive technologies, such as Color iQ, which releases foundation matches based on the Color iQ number assignment, and Fragrance IQ System, that provides a dry scent for customers without trying it on, shows Sephora’s utilization of AI for personalized shopping experience and customer’s interactive engagement.
Digital Transformation is a Driver to Success
The implementation of digital and interactive platforms by leveraging AI and technology solution systems illustrates Sephora’s efforts in diversifying its digital transformation.
A pursuit of developing and replicating in-store experience for the company’s different target segments shows how Sephora is addressing its online client base who does not have access to the physical stores.
Sephora’s recognition and adaptation to fluctuating consumer behavior trends and needs, along with pragmatic planning in relation to evolving technological innovations provides the company the long-term differentiation strategy that not only develops favorable brand perception, but also generates sustainable business model that would not carry the unfortunate consequences of unpredictable crisis, such as COVID-19 global outbreak.
