Axios Event: "Technology is at the heart of retail," enhancing personalization, says Ulta Beauty CMO

AUSTIN, Texas – AI is transforming how brands cut through the noise and engage with consumers, retail leaders said at a March 8 event at Axios House SXSW.

The big picture: As brands compete for consumer attention, more digital work, technology, in-store experiences and omnichannel strategies are expected to drive the next wave of customer engagement.

Axios' Kerry Flynn and Axios Local's Nicole Cobler moderated conversations with Ulta Beauty's chief marketing officer Kelly Mahoney; Jason Wersland, Therabody's founder and chief wellness officer; Amanda Henry, Therabody's vice president of business development and women's wellness; Olipop's CEO, co-founder and formulator Ben Goodwin; and Samsung Electronics America CMO Allison Stransky at the event sponsored by Lowe's.

What they're saying: Ulta Beauty has used AI since 2018 to enhance its data and tailor its marketing approach based on shopping habits, Mahoney said.

• "Beauty is so dynamic and beauty is very, very personal," she said. "So we were really forced early to think about how to personalize the experience because everybody's beauty experience is just so no one-size-fits-all."

Zoom in: As more brick-and-mortar stores close, technology can help physical stores stay relevant.

• Ulta Beauty is piloting LUUM Precision Lash, an automated robot that applies lashes on customers in-store.
• "We know lashes are in," Mahoney said. "But it's really tricky [to apply]. It's hard to do it. And so how can we make that experience much easier for our beauty consumers when they come in?"
• For Therabody, physical stores remain vital as competitors flood the market.
• "When you create an industry, everybody piles in," said Henry. "But then when you actually feel the products, you're like, 'OK, wow, there's a real difference.'"

How it works: Beyond selling products, Therabody is making its online store more than a marketplace.

• "It's [not just] a shopping site," Werlsand said. "You have tons of education. We have a science department. We have research in there so you can dig down if you want to as a physician, or a practitioner, or a body work or massage therapist. So we really want to make it so that when you jump on, whoever you are, you feel really at home."
• Samsung is also leveraging technology to create a seamless consumer experience with its SmartThings platform. Stransky said the platform is "product agnostic" and connects to more than 300 third-party products, allowing customers to have fully connected homes.

Separately, Goodwin highlighted the power of social media marketing to reach customers.

• "It's really cost-effective. It's a really fantastic way to have a very direct relationship with your customers."
• However, Goodwin noted that social media can disproportionately resonate with younger generations, so blending other forms of media like television helps brands have a wide-ranging audience.

Content from sponsored segment:

In a View From the Top conversation, Chandhu Nair, Lowe's senior vice president of data, artificial intelligence and innovation, said that as retail evolves, customers are looking for the convergence of the physical and digital world.

• Nair said most new homeowners are millennials who are used to having everything digitized on their phones. "As we look at all of the new technologies – whether that is generative AI, or spatial computing or augmented reality, etc.– we're trying to bring all of that to drive experiences for our customers."