Audiences are the paramount—if not primal—factor for a beauty business. The overall health of a beauty business is majorly impacted by the quantity and the quality of its audience population. In addition to that, audiences are broken down into primary niches—clusters of shoppers based on two factors: the company’s level of business (startup to a big company) and its own niche.

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For a beauty company to create and condense its own niche requires fundamental steps. First, it needs to attract an audience that aligns with the company’s own niches, and from there, it has to increase its audience and maintain a stable balance between retaining customers and new customers over time. 

How does that happen? First, the primary strategy to grow this population into fruition is targeted ad campaigns. Tangent.ai has meticulously crafted a robust strategy using the combination of Meta, TikTok, and Facebook ads with their AI analytic facial software. First, using the analytic facial camera, the software garners specific facial attributes with data such as skin type and skin issues. Then, the software essentially filters out the data, runs it through Meta and TikTok ad campaigns, and aligns the filtered data with specific advertisements that advertise products to improve skin type, issues, and maintain overall skin health. For example, if a user had skin issues of acne, then based on the filtered data of their face and skin questionnaire, they will soon receive generated advertisements with products that alleviate their acne.

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Many people have raised the issue about breach of privacy when it comes to advertising specific products based on one’s personal skin health. Tangent.ai has addressed this issue by explaining how it only accumulates surface-level data based on a shopper’s skin issues and analytics rather than personal information and uses those skin data points to target advertisements.

The total sales revenue increases with targeted ad campaigns because they are specifically designed to address the needs of personalized skin issues towards each shopper based on their analytics. As a result, the beauty business is able to present highly relevant products in an efficient and timely manner. As a result, clicks increase which in turn drives an increase in revenue.

Average order value increases with the involvement of bundling. First, advertisements specific to shoppers can promote bundles of niche products, such as an acne treatment step-by-step bundle kit if the shopper’s skin issue is acne. This encourages customers to buy a packaged deal for a cheaper and more efficient price all at once, which also uplifts the health of the beauty company.

In turn, shopper retention rate can increase with the result of customer satisfaction. Since the advertisements are continuously producing advertisements catered towards shoppers’ needs, customers feel understood and valued in a conscious and subconscious way which leads to a higher retention rate. This in turn decreases the churn rate with continued trust.

With similar patterns of increased AOV and revenue, it is an inevitable assumption that the click-through rate would increase. When a company produces advertisements that align with the shopper’s skin needs, they are most likely going to click the advertisement which increases engagement and potential trust.

This also increases the return on advertising spend because advertisements will nourish, focus, and grow on a specific, well-defined, and niche audience. Thus, the advertising spend is utilized more effectively. This in turn leads to higher conversion rates which energize more efficient returns on the advertising investment.

With highly amassed data based on the ad campaigns, this data can ignite specific email marketing strategies such as creating highly personalized emails based on a shopper’s skin need and those are more likely to be opened, which in turn increases the email click-through rate. These metrics are reciprocal and go hand in hand.

All these personalized metrics are a testament to the repeat purchase rate—will this, in essence, retain loyal customers? This comes to the aspect of fostering trust. As a result, regularly targeting shoppers who consistently purchase from a company will keep them engaged with similar or new product launches, which increases retaining customers and repeated purchases.

As a result, the audience and targeted ad campaigns to grow and foster those audiences drive customer engagement, satisfaction, trust, and conversion across various websites and companies. This in turn significantly enhances fundamental performance metrics and niches for a beauty business.

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Sources: 

https://www.sistrix.com/ask-sistrix/seo-strategy/find-your-niche/ 

https://www.linkedin.com/mynetwork/catch-up/all/ 

https://www.statista.com/chart/28266/beauty-tech-market-projections/ 

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