Trust issues: why customers avoid buying cosmetics online & how brands can win trust back
When you consider the fact that US customs agents seized over 2,000 pounds of counterfeit beauty products in 2016 alone, it makes it hard to trust the authenticity of makeup sold online.
Faced with the risk of unknowingly purchasing counterfeit, cheap, or even unsafe knock-offs, many consumers steer clear of purchasing beauty products online from e-commerce giants. In the end, that’s bad business and lost trust not only for beauty makeup brands but also for online retailers like Amazon. According to CBS News and the US Customs and Border Protection, counterfeit products cost the cosmetic industry around $75 million on a yearly basis.
Since many consumers avoid purchasing makeup and beauty products online out of fear and frustration, a number of brands are bringing their products to customers in new ways that bypass the risks of online shopping altogether. These techniques offer additional touchpoints that create memorable brand experiences, foster authentic connection, mobilize the power of social media, and in the process, rebuild trust with consumers.
Here’s how cosmetic brands are doing it.
Embracing Tech Use
In the face of growing concern over counterfeit products falling into the hands of unsuspecting (and increasingly disgruntled) consumers, Amazon, which receives much of the flack over the counterfeit issue, now gives shoppers the chance to try on makeup before making a purchase.
How?
Using augmented reality (AR) developed by L’Oreal in partnership with Modiface, Amazon allows customers to virtually try on different shades of makeup, such as lipstick. By first using their phones to take a picture or record a video of their face, customers can then select shades of makeup they would like to try on. From there, the AR imposes what the makeup would look like on the image or video of the customer’s face as if the customer were wearing it in real-time.
Why does AR build trust?
Do knockoffs offer AR experiences? No.
And, here’s the other thing — AR tech helps customers visualize the way a product looks on themselves before even clicking the “buy” button. If customers can visualize themselves using and enjoying a product, they’re more likely to purchase it.
Through AR, customers have a better sense that the product will meet their expectations in real life. That extra sense of reassurance builds trust in the product’s ability to deliver what the customer is looking for while also helping the customer trust the value delivered through the online shopping experience offered by Amazon as a whole.
And, while putting on virtual makeup can help a customer visualize themselves using a product, it’s no substitute for a direct experience with the product. For that, brands turn towards pop-up physical experiences.
How pop-up experiences lead to the best advertising — word of mouth and social shares
As social media use increases, so does the demand for memorable experiences worth sharing. First of all, it’s important to remember that each social media user is a content creator in their own right. And, they’re constantly looking for fresh content to post.
In order to leverage the potential of social media, brands are creating physical experiences that social media users and potential customers can’t help but engage with and, most importantly, share with followers on social media.
Examples:
Capitalizing on the concentration of a highly connected and influential group of young individuals at the Coachella music festival, high-end French cosmetic brand, YSL Beauty, created a pop-up experience that resembled an iconic American gas-station. Complete with branded gas pumps and retro vehicles, the experience allowed festival-goers to interact with the brand’s latest products in person while giving them endless opportunities to share the experience and the story through social media.
In Seattle, Glossier broke the mold of the traditional makeup retail space by covering a pop-up area with vibrant greenery that somewhat mimicked the region’s biologically rich environment.
Benefit Cosmetics also experimented with creating a story out of a pop-up location by re-creating a 1950’s themed diner where guests sampled different beauty products while nibbling on free food.
What’s important to note is that brands create these experiences with the intent of having them be digital from the start. In essence, these experiences give customers the tools to easily tell the brand’s story through social media.
Considering people trust their friends and social networks more than they trust ads or fake online reviews from third-party vendors, creating experiences that make it easy for customers to share with their social networks makes complete sense.
Pop-up experiences turn social users into brand ambassadors that build trust between brands and customers (existing and potential) by capitalizing on the pre-existing trust of social networks and the ability of social media to share those glowing references easily with a highly connected network people.
By giving customers memorable, easy, and value-adding ways to experience their products on a more personal basis, cosmetic brands encourage social sharing and foster trust with their customers.
And, when it comes to the ways brands can do this, the possibilities are nearly endless.
The Takeaway: How to instill trust in consumers and share your brand’s story
- Be transparent — show customers what you are made of and communicate through their channels of use (social media being one of them) often and clearly.
- Utilize new technologies, like AR, that bring customers closer to your brand online and that reassure them of the value unique to internet shopping.
- Leverage physical pop-up experiences that encourage engagement and sharing through social media. Let the experience empower your customers in telling your brand’s story using their own content creation skills. Invite them into the creative process.
Want to learn more? Feel free to reach out at any time. We would love to chat!
The above piece was written by the Latitude Supercharge Research Team, which includes Connor Beck and Carter Jensen
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Resources and original reporting of the above points covered by the following publications — PSFK, CBS News, Media Post, & New Beauty
At Latitude, we love taking incredible brands of all sizes and elevating them through tech-fueled experiences that add true value. From pop-up retail to permanent build-outs, our team brings brand stories and modern-day commerce together to truly stand out. Want to learn more? See our case studies. Give us a shout.
Additional Resources
Want to learn more? Our 2019 retail report is now available and includes a long list of case studies and insights from Shopify, Dollar Shave Club, and much more.
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