The use of new digital technologies, and what it means for beauty retailers, was discussed at a recent Cosmetic Executive Women Newsmaker Forum, moderated by Allure’s editor-in-chief Linda Wells.

On hand to give their insights about the use of new digital technologies were retail experts Sona Chawla, President, Digital and CMO, Walgreen Co. and Mary Dillon, CEO, Ulta Beauty.

This is Part 2 covering the CEW Forum – for more insights from Dillon and Chawla, see Part 1: Ulta & Walgreens Execs Reveal Critical Digital Strategies To Lead in Beauty Retail.

Pay With a Click, In-Store

There are apps that can do just about anything these days – even track shoppers in-store. There’s also ApplePay – an exciting new way to make a purchase digitally, while in-store. It can significantly speed up the checkout process, and potentially increase sales. Consumers using ApplePay swipe their finger as an ID, then wave their cell phone – and they’re done with the transaction in about three seconds, if all works as it should. You even have the option to clip a coupon, online.

Allure’s Linda Wells asked the panelists, “Are retailers utilizing these new technologies, and what significance might they have for the future of beauty retailing?”

Walgreens is already on board with ApplePay – it was one of its first retail partners. Chawla said that convenience is key for Walgreen’s, and the retailer has been doing everything possible to make the purchasing process easier. Partnering with ApplePay was in line with Walgreens’ mission to link the digital and in-store shopping experiences, seamlessly.

“ApplePay is wonderfully easy, and offers shoppers another, and better, way to pay,” said Chawla. “It’s too early to tell if ApplePay is contributing to higher sales – it’s still in the testing stage, and so far it’s been only a small percentage of our sales,” she explained. 

Ulta is taking more of a wait-and-see approach to this new technology, according to Dillon, but has been utilizing other digital capabilities on its website.

She explained that ApplePay is on Ulta’s radar, and possibly in its plans for the future, but said they prefer a “watch and learn” approach right now. “I do believe that new technologies like this have the potential to drive sales, but they also require an investment of time to sort out. We have other priorities to focus on as well. So we’ll get there, but we’ll learn from others in the process,” she explained.

Automating the Shopping Experience

At Walgreens, shoppers have been able to fill a prescription by scanning a code. Wells asked if this is an innovation that will be translated to beauty somehow, in the near future.

“That app has worked so well – we have been able to shorten the time to fill a prescription from 5 minutes to 30 seconds,” Chawla said.

Chawla didn’t say there would be anything identical to apply to the beauty shopping experience just yet, but Walgreens did recently launch an auto-replenishment option on its website. “Making it easy is key,” Chawla added.

How Far to Go Without Crossing a Line

Wells asked Dillon and Chawla how they know they’re not crossing a line – when a shopper might start to view a technology as annoying instead of helpful.

“Everything is about opting in – and making sure your guest is engaged, and willing,” said Dillon.

Ulta tracks every customer’s past purchases on its website. “She loves the fact that we know what she’s interested in – and we know this leads to sales growth. It’s another way to improve our guest’s shopping experience,” Dillon added.

Chawla says they are being cautious, to not take things too far. “We have a pilot project in our Duane Reade stores, where we implemented beacons,” she explained. When an in-store shopper is using Duane Reade’s app, the beacons are signaled, and the app switches to ‘store’ mode. This tells the customer that ‘the store’ knows she’s inside.

If you think this might make some consumers feel ‘stalked’ by the app, Chawla is well aware. “We’re thinking about how to test this without being creepy,” she said.

The key is to be less intrusive, and more helpful, Chawla explained. Once the app knows a shopper is in-store, it provides navigation capabilities, so a shopper can find what they need more quickly. Shoppers also have access to digital coupons that can be “clipped,” and are linked to loyalty cards. 

What’s Next?

Walgreens’ goal is to create a unified shopping experience by further linking its website to its in-store experience – merging traditional and digital retailing.

Forty-eight percent of Walgreens’ customers say they visit a store after visiting the website, according to Chawla, and many of its online shoppers are looking for beauty products.

Chawla explained that its associates in-store should understand these new technologies. “These digital technologies can help and empower our team members in the stores. Our goal is to make sure they learn to leverage and advocate for them,” she said.

Dillon said that Ulta will continue to focus on how to communicate effectively with consumers online – and that the synergy of the digital experience with the in-store experience is an important part of Ulta’s retail strategy. “The new ways in which we’re all operating in the digital space is exciting – especially how women are learning about beauty from each other,” she said.

However, Dillon advised: “Whether it’s a retailer’s physical in-store experience or the digital experience, they have to come together to support the same strategy so that they work together, and aren’t at odds.”

Chawla says to remember that although technological innovations are great, “we can’t fall in love with technology for technology’s sake.” She explained that both retailers and brands should use new technologies wisely, and advised, “Be true to who you are, and innovate within your core DNA.”