Skincare has always been a huge industry and will increase USD 45 billion between 2018-2023. It has increasingly become segregated, with as many as eight different categories of products. The popularity of trends like the 10-step Korean beauty regime costing around $200 has also led to a massive increase in sales. Besides mass-produced skin products, personalized skincare products are also popular. 

Artificial intelligence has been handy in understanding customer behavior patterns in the skincare industry. So if you are in the skincare industry, you can learn from your data which customers are likely to continue doing business with you. From the business point of view here are techniques to have more loyal customers:

Loyalty Programs

Customers love to special treatment. If a customer shops with you for their skin care products, it is unlikely that they will change to another brand. The reason for this is that customers try out many different products before they can find one that suits their needs. Once they have seen products of their choice, they will keep coming back to buy them. Once the Skincare routine is set, people do not prefer to change it often. However, that does not mean that customers do not like trying out new skincare products. If something catches their fancy, they will want to test it out. For this reason, offering loyalty programs online can help customers feel privileged and part of the family.

It acts as a status provider, especially when the loyalty programs names are in order of opulence. (platinum, gold, silver). Artificial intelligence-led experimentation can help you identify recommended products and pricing for individualized loyalty programs.


Mystery Boxes

Since Skincare does not have any surprising element to it, mystery boxes are a great way of keeping the excitement going. The mystery box is an excellent way for customers to feel curiosity and excitement in an otherwise set routine. Customers have no idea of what will come in the box, so the mystery box feels like a surprise gift. A mystery box needs a good standing with your customers, where they trust your brand and can rely on it. It is a leap of faith, but an insider secret would be to mix the contents of the box. Including something from a well-known brand along with miscellaneous items that may not be selling well is a great way of finishing any leftover stock that brands may have. Plus the price of the box would be lower than what customers would usually pay, making it a great deal.

Mystery boxes aren’t supposed to be a mystery for you when you are designing these programs. What goes into each mystery box should be identified based on sound data strategy, and AI comes in handy to predict the contents of the mystery box.


In the loyalty programs, lucky winners could enter a raffle and win tickets to a contest. Tie-up with skincare experts or beauty/skincare brands for workshops. Loyalty programs, thought leaders promote the membership of the brand in a way that customers would be rushing in to buy the membership. Customers who leave the business to opt for a different one have done so because the company offers nothing more than simple skincare products. Customers are used to being treated royally by other industries, and may not like the simplicity of the business. Customer conversations, their questions, and chats during the events and sales are a great place to look for insights in terms of identifying upsell and cross-sell opportunities using AI.

Much more than Skincare

So what should a skincare business offer, besides simple products? Well, for starters, experts in the skincare industry could write about different subjects related to skin and products. A newsletter with exclusive looks into a new launch can attract a lot of subscribers. Loyalty programs, events/workshops, mystery boxes, new launches, and exclusive benefits for members can make the skincare “routine” more attractive, both for the business and for the customers. Customers are willing to spend a fair amount of money on something they like. Customers don’t leave you if you deliver a fantastic experience with your business offers. Customer feedback, their expectations from the service and products help your business learn how to stay ahead of the curve; AI enables you to acquire these business insights in time.

Besides Skincare, keeping up excellent communication is crucial to retaining your customers- to achieve this behavior for customers online can be assessed as data. This data can be used to make data-driven decisions that can help you single out customers that have not interacted with your business for a while. Reach out to these customers with a discount on their favorite brand and a free newsletter. They’ll come back to your business. 

But how do you know who is not returning to you for their Skincare needs? Well, with a machine learning platform like Datoin can help you understand customer churn. Try it out today.