It's been a turbulent time for beauty brands. After suffering stay-at-home-related setbacks during 2020, in 2021, the sector bounced back, clocking a 13% increase in sales worldwide.Current forecasts estimate that 2022 will close with sales higher again, with ecommerce already the fastest-growing channel for beauty sales.


But with record-breaking sales comes the pressure to retain those hard-won customers and a pivot point that, according to industry insiders, could make or break a brand.

As our friends at LoyaltyLion say,

'The race is on to build relationships with those new customers, secure a second purchase and prevent them from drifting to another brand. Why? Because data shows that 53% of customers who return for a second purchase go on to make a third. And, of the buyers who make a third transaction, 63% go on to make a fourth.'

And it all comes down to that all too elusive word, trust. Of course, there are many ways you could and should already be building trust within your audience. Showing the faces behind the brand, communicating clearly and consistently, and displaying markers and badges that show how you keep people's personal information safe are now considered non-negotiable.

But we're here to focus on the trend for conscious consumerism, also known as 'socially conscious,' 'green,' or 'ethical' consumerism, and specifically how ecommerce brands can respond to it in their digital marketing strategies.

3 Ways of Conscious Consumerism

There are three key ways we can address the conscious consumer in the beauty world: sustainability, ethicality, and clean beauty. Brands may choose to focus on one of these areas as a starting point, but all are rooted in the core belief that a product or service should have limited environmental and societal implications.

Sustainability and Ethicality

Sustainability and ethicality demand a holistic approach, scrutinising every facet of a business, whereas clean beauty tends to focus on the product itself. As Klaviyo states, 'With the rise of environmental awareness comes a new wave in the health and beauty industry: clean beauty. As consumers start paying more attention to beauty product ingredients, the use of safe, natural, and cruelty-free formulas continues to flourish.

Clean Beauty

‍The clean beauty market is estimated to reach $22B by 2024.'

And it appears shoppers are already voting with their clicks. As LoyaltyLion continues, '90% of millennials say they will buy from a brand if they believe their social and environmental claims.'

Of course this is all well and good for the multi-million dollar conglomerates like Elemis and Weleda, but how can boutique brands with limited resources level up?

LoyaltyLion offers sage advice,

'You may not be in a position to have revisited your entire supply chain to make sure it's sustainable yet, but today's shoppers ARE making decisions based on their values. They want to shop with brands they are confident share their passions and beliefs, so you have to be seen to be doing something genuine and authentic to align with them. From brands using their loyalty programs to offer points in exchange for positive behaviors like recycling to brands allowing shoppers to redeem rewards in the form of charitable donations, ecommerce businesses are making small gestures that go a long way with their customers. Small gestures that are a great deal easier to execute than large-scale operational changes.'

As marketers, we know it's not just about making the changes, you'll have to work out how you talk about them, too. And not in a one-and-done kind of way, unless you want to be accused of greenwashing. Millennials and Gen Z aren't afraid to boycott brands they consider to be making tokenistic efforts.

This is where an understanding of your existing customers and their value to your brand is crucial. If you know who your top-tier customers are – the ones that frequently purchase with the highest average order values – you can focus on giving them consistently great shopping experiences that keep them coming back and referring your brand to others.

'If supply chain struggles have left you unable to meet next-day shipping demands for all customers, then segment your most valuable customers and offer it just for them. If products are in short supply, make sure your most loyal customer gets priority access before they run out.' (LoyaltyLion)

It's time to consider making conscious consumerism part of your customer retention strategy. Need a guiding hand? We'll be happy to help.

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Discover how R360 Growth can fuel sustainable profitability and long-term success with a robust loyalty strategy. Connect with us at hi@r360growth.com or via our online form here.

We look forward to exploring growth opportunities with you.

Your journey. Our expertise.

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