AI a ‘Game Changer’ for L’Oréal as it Explores Live Video Shopping
Both engagement and conversion with the format have been strong, according to Beredo, and the company will continue to invest in the technology.
This is hardly the first toe L’Oreal has dipped into the AI waters. It’s also experimented with chatbots in the past, determining the tech thus far works very well for simple, low-touch, frequently asked questions and transactional queries. From this perspective, chatbots are essential for automation and cost efficiencies for a business trying to achieve scale, Beredo said.
But as questions and inquiries get more complex and personalized, L’Oreal still prefers to leverage the high-touch specialty expertise from one of its company’s trend beauty advisors.
The company is also exploring the potential of voice commerce, which Beredo said has been primarily focused on discoverability at this point. It’s trialed the technology with some of its brands and skinceuticals through a three-month proof of concept trial.
This willingness to experiment is part of L’Oreal’s strategy to remain successful during the pandemic and in the face of rapidly shifting consumer behavior by leveraging technology, especially as it pertains to consumer expectations regarding the delivery of both products and services. A big portion of the consumers who’ve shifted from brick-and-mortar to digital are expected by Beredo to stay digital; as such, much of this remains a reinforcement of the company’s mid- and long-term digital strategy, with certain projects merely accelerated.
“If consumers are shifting towards digital — and this is happening, whether naturally or whether it because of closures of certain things — we need to make sure we're providing the right experience on our digital platforms so that they can make the right decision for them,” he said. “So we will continue to accelerate our services [and] expand our engagement capabilities with things like video consultation, live shopping and further expansion of our Modiface technology.”
“We’re entering an era where companies will try new things, find new ways for consumer engagement, and I think the companies that are bold, willing to take risks, and seize opportunities will get ahead,” Beredo noted.