Recent use of data analysis technology by brands such as Lush and 100% Pure have shown analysis can be useful both internally, and in external communication with consumers.
“Big data is huge,” Barbara Brockman, president of the Society of Cosmetic Scientists, said recently at the in-cosmetics trade show. “Brands have got to listen to the consumer; but we've never had the ears until now.”
Consumer channels
Talking as part of a round table discussion on skin care innovation, Brockway’s view that data can be used to communicate more effectively with the consumer was met with agreement from fellow speakers.
“Ask the consumer,” Janet Tarasofsky, head of product innovation at Sarah Chapman Skinesis, advised brands. “We have the means to communicate so easily now, so ask them what they need and then tailor your response.”
Indeed, brands seem to be putting this into practice, with Forbes recently reporting on the success of 100% Pure’s use of algorithms which enable them to offer steeper discounts to those online shoppers who close the site without making a purchase.
After three months of using the selective promotions, Forbes reports, online sales were up 13.52% for the beauty brand, confirming that big data is enabling brands to respond to individual consumer demands, and increasing profitability.
Internal efficiency
As well as allowing better consumer communication, big data also offers opportunities for brands’ internal operations, as evidenced by Lush’s recent announcement that it has profited from the implementation of Business Intelligence systems across its operations.
The technology, which is developed by Qlik, works with various datasets, from retail data, to warehouse stock checks and staff management information (such as timesheets and payrolls), and the company claims it has delivered savings to the beauty brand of over £1 million in stock loss over its first two years.
Qlik UK & Ireland’s managing director, Sean Farrington, noted that the use of data analysis technology has proved a success for the cosmetics company.
“LUSH is a British success story in a highly competitive environment and it’s great to be involved in giving its staff access to relevant data that helps them to perform even better,” he said.