Marie Redding, Associate Editor01.22.15
Linda Wells, Allure’s editor-in-chief, at a recent Cosmetic Executive Women’s Newsmaker Forum featuring Sona Chawla, President, Digital and CMO, Walgreen Co. and Mary Dillon, CEO, Ulta Beauty.
Wells said that Leonard Lauder recently “accused” retailers of being boring, saying that stores are trying to duplicate shopping experiences and that’s killing creativity.
Wells and Dillon were both quick to respond. “We’re known for the unique retail experience we provide, which is personalized and consistent in all our stores,” said Dillon.
Chawla said that she recently heard an expert predict that during the next five years, there will be more changes happening in retail than there have been in the last 150 years - so it won’t be boring for much longer. “Our stores are evolving - we’re bringing health, wellness and beauty together, and we’re thinking about technology and how it’s changing the retail experience,” she added.
As the executives continued to share perspectives, the topics that came up included brick and mortar versus digital sales, the importance of loyalty programs, beauty advisors and sampling - all in an effort to create a better shopping experience for consumers, regardless of where the sale is taking place.
Connect with Consumers Online
Dillon said Ulta’s focus is to make sure it consistently delivers the experience its customers are looking for, while growing its e-commerce presence.
“Our sales will never be predominantly online,” said Dillon. “We’re expecting about 10% of our sales to be through e-commerce in the next five years - but, you have to play there in order to be relevant.”
Ulta recently launched “shoppable" videos. “You can watch a blogger tell her story, while being on our website at the same time making a purchase decision,” Dillon explained. Live online chats are another new feature on Ulta’s website, and the retailer recently recruited Tarte’s Maureen Kelley to take part in an interactive discussion with shoppers.
“The guest who is shopping and learning about Ulta online is also shopping in the store - and she’s spending a lot more than other shoppers,” said Dillon, about why it's so important to connect with consumers online.
Walgreen’s describes its current online efforts as a “digital transformation."
Chawla explained that Walgreens knows 55% of its shoppers are using its app inside the store on their mobile phones. “This tells us we have to connect those experiences - digital with in-store. We are thinking about whether or not we are bringing consumers the right content and motivation, to meet them in that moment,” she explains.
Although all things digital is a priority for Walgreens, the retailer is not forgetting about the importance of its brick-and-mortar stores. “After our merger with Boots, we will be the third largest beauty retailer in the world," said Chawla. "Most Americans live within three miles of one of our stores,” she continued. (To be more specific, Walgreens reported that in 2013, 63% of the U.S. population lived within three miles of a Walgreens location; and more than 75% live within a five-mile radius.)
Walgreens’ large number of store locations fulfills its mission to focus on convenience, and it’s connecting the dots between its brick-and-mortar stores and its website by letting consumers order online and pick up in-store. “We’re also working with partners on same-day home delivery,” said Chawla. "These digital innovations are huge right now - we’re just beginning to touch the tip of the iceberg,” she added.
Utilize Social Media and Online Reviews
During the Q&A discussion, Wells called attention to this statistic, provided by IRI Worldwide: 35% of beauty and skin care shoppers are researching products online before buying.
Dillon says this statistic is often evident. On Ulta’s website, shoppers can virtually chat with a beauty adviser to find what they need, or, more often, they do the research online before going to a brick-and-mortar store. “Many shoppers come into our stores knowing exactly what they want. Then our job in-store is to help them find it,” explained Dillon.
Wells asked Chawla and Dillon about their strategies relating to the different types of content online - like user generated product reviews - and whether or not they are using this type of content to influence sales.
Dillon said that Ulta is currently working with strategic partners in an effort to utilize user-generated content, which can be a challenge. “It’s out there - there are videos on YouTube. It’s just a matter of finding it,” she said.
Chawla explained more about the challenging aspects of the task, adding, “We have to decide how to curate it all, using the right tools. We’re also being thoughtful about content strategy, and thinking about context, such as where to show different types of content online and the right format to show it in.”
Another question Wells asked was whether or not social media was directly influencing sales. “It’s a part of the marketing mix,” said Dillon, emphasizing the importance of seeing social media as a part of a bigger picture. “It’s about everything you do,” she added, but said it is fun to watch as beauty fans engage online. “When we post a new product on Instagram, within two hours we’ll have 14,000 likes. But traditional advertising, like television, still works, too, she explained.
Chawla agreed, saying that now social media is a part of the marketing mix - and for a long time that wasn’t the case. “The world of social media is so fascinating - there are so many channels now, and ways to reach consumers.
My advice is to be very specific about your goals," she said, explaining that since consumers use every social site differently, they should be used in different ways by retailers and brands. “The key is to recognize what each social site brings to the table. They each reach a different niche and very targeted audience. Decide how to weave them into your marketing plan,” she added.
Being More ‘Social’ Can Be A Winning Strategy
Overall, both Dillon and Chawla agree that the social media is an opportunity not to be missed. “It’s a win-win,” said Chawla. “We can work with brands to launch products on social - that’s a key part of what we’re focusing on right now.”
Read More:
Part 2: Ulta and Walgreen’s Execs discuss the use of new technologies, like Apple Pay.
Is retail boring? That was one of the questions asked by Wells said that Leonard Lauder recently “accused” retailers of being boring, saying that stores are trying to duplicate shopping experiences and that’s killing creativity.
Wells and Dillon were both quick to respond. “We’re known for the unique retail experience we provide, which is personalized and consistent in all our stores,” said Dillon.
Chawla said that she recently heard an expert predict that during the next five years, there will be more changes happening in retail than there have been in the last 150 years - so it won’t be boring for much longer. “Our stores are evolving - we’re bringing health, wellness and beauty together, and we’re thinking about technology and how it’s changing the retail experience,” she added.
As the executives continued to share perspectives, the topics that came up included brick and mortar versus digital sales, the importance of loyalty programs, beauty advisors and sampling - all in an effort to create a better shopping experience for consumers, regardless of where the sale is taking place.
Connect with Consumers Online
Dillon said Ulta’s focus is to make sure it consistently delivers the experience its customers are looking for, while growing its e-commerce presence.
“Our sales will never be predominantly online,” said Dillon. “We’re expecting about 10% of our sales to be through e-commerce in the next five years - but, you have to play there in order to be relevant.”
Ulta recently launched “shoppable" videos. “You can watch a blogger tell her story, while being on our website at the same time making a purchase decision,” Dillon explained. Live online chats are another new feature on Ulta’s website, and the retailer recently recruited Tarte’s Maureen Kelley to take part in an interactive discussion with shoppers.
“The guest who is shopping and learning about Ulta online is also shopping in the store - and she’s spending a lot more than other shoppers,” said Dillon, about why it's so important to connect with consumers online.
Walgreen’s describes its current online efforts as a “digital transformation."
Chawla explained that Walgreens knows 55% of its shoppers are using its app inside the store on their mobile phones. “This tells us we have to connect those experiences - digital with in-store. We are thinking about whether or not we are bringing consumers the right content and motivation, to meet them in that moment,” she explains.
Although all things digital is a priority for Walgreens, the retailer is not forgetting about the importance of its brick-and-mortar stores. “After our merger with Boots, we will be the third largest beauty retailer in the world," said Chawla. "Most Americans live within three miles of one of our stores,” she continued. (To be more specific, Walgreens reported that in 2013, 63% of the U.S. population lived within three miles of a Walgreens location; and more than 75% live within a five-mile radius.)
Walgreens’ large number of store locations fulfills its mission to focus on convenience, and it’s connecting the dots between its brick-and-mortar stores and its website by letting consumers order online and pick up in-store. “We’re also working with partners on same-day home delivery,” said Chawla. "These digital innovations are huge right now - we’re just beginning to touch the tip of the iceberg,” she added.
Utilize Social Media and Online Reviews
During the Q&A discussion, Wells called attention to this statistic, provided by IRI Worldwide: 35% of beauty and skin care shoppers are researching products online before buying.
Dillon says this statistic is often evident. On Ulta’s website, shoppers can virtually chat with a beauty adviser to find what they need, or, more often, they do the research online before going to a brick-and-mortar store. “Many shoppers come into our stores knowing exactly what they want. Then our job in-store is to help them find it,” explained Dillon.
Wells asked Chawla and Dillon about their strategies relating to the different types of content online - like user generated product reviews - and whether or not they are using this type of content to influence sales.
Dillon said that Ulta is currently working with strategic partners in an effort to utilize user-generated content, which can be a challenge. “It’s out there - there are videos on YouTube. It’s just a matter of finding it,” she said.
Chawla explained more about the challenging aspects of the task, adding, “We have to decide how to curate it all, using the right tools. We’re also being thoughtful about content strategy, and thinking about context, such as where to show different types of content online and the right format to show it in.”
Another question Wells asked was whether or not social media was directly influencing sales. “It’s a part of the marketing mix,” said Dillon, emphasizing the importance of seeing social media as a part of a bigger picture. “It’s about everything you do,” she added, but said it is fun to watch as beauty fans engage online. “When we post a new product on Instagram, within two hours we’ll have 14,000 likes. But traditional advertising, like television, still works, too, she explained.
Chawla agreed, saying that now social media is a part of the marketing mix - and for a long time that wasn’t the case. “The world of social media is so fascinating - there are so many channels now, and ways to reach consumers.
My advice is to be very specific about your goals," she said, explaining that since consumers use every social site differently, they should be used in different ways by retailers and brands. “The key is to recognize what each social site brings to the table. They each reach a different niche and very targeted audience. Decide how to weave them into your marketing plan,” she added.
Being More ‘Social’ Can Be A Winning Strategy
Overall, both Dillon and Chawla agree that the social media is an opportunity not to be missed. “It’s a win-win,” said Chawla. “We can work with brands to launch products on social - that’s a key part of what we’re focusing on right now.”
Read More:
Part 2: Ulta and Walgreen’s Execs discuss the use of new technologies, like Apple Pay.