Klaviyo and The Business of Fashion have shared new insights on how beauty brands can future-proof their retail strategies in an era of AI-driven discovery, fragmented channels and rising consumer expectations, following a knowledge breakfast held at the Business of Beauty Global Forum 2026 in Napa Valley.

The session, entitled “The New Beauty Buying Journey”, featured a fireside conversation between Annabel Bolton, content strategy and features manager at The Business of Fashion, and Kelly Thacker, VP of Product Marketing at Klaviyo.

Key context: 53% of consumers who used generative AI for search also used it to help them shop, according to BoF and McKinsey & Co’s The State of Fashion 2026 report, while the average USA consumer spends 13 hours per day consuming media and technology.

Organise customer data to power AI and personalisation

• A strong first-party data infrastructure is the essential foundation before deploying any AI tools. “You cannot use AI and get any good output if you do not have good data,” said Thacker.
• Channel fragmentation and disconnected marketing and CX teams create inconsistent customer experiences that undermine loyalty. Consolidating these drives significantly better outcomes.
• 80% of customers say the experience a company provides is as important as its products or services, according to Salesforce’s The State of the Connected Consumer 2025 report.

Personalisation requires individual customer understanding

• True personalisation is not the same as segmentation. Dividing customers into VIP, past and new groups is customisation, not personalisation.
• Brands should use reviews, interviews and behavioural data to understand not just what people buy, but how, when and where they want to engage.
• Dermalogica introduced an AI-powered skin assessment tool that segments customers by individual skin concerns, enabling tailored communications rather than generic marketing. Anthropologie was cited for delivering relevant SMS messages at the times individual customers are most likely to engage - one brand increased flow revenue by 78% through this approach alone.

Loyalty is built on recognition, not rewards

• Points-based loyalty programmes are no longer sufficient on their own. The brands building the strongest relationships are those that make shoppers feel recognised through personalised experiences across every interaction.
• 68% of consumers say they simply want to be known by the brands they shop with.
• ThirdLove was cited as an example: customers who click through from an email are greeted with a personalised homepage displaying their points balance, favourite products and purchase history.

Community and educational content drive AI discovery

• LLMs (large language models) prioritise rich signals from customers. “The brands showing up the most are those that have strong communities on Reddit or their own communities and are pulling in educational content,” said Thacker.
• Patrick Ta used customer reviews to discover that its best-selling eyeliner was also its most-returned product - not due to formula issues, but because customers didn’t know it required water to activate. An educational post-purchase campaign via email and WhatsApp reduced return rates and increased positive reviews.
• Any content created by consumers about a brand is ranked higher by LLMs than brand-owned content.

Preparing for the age of AI shopping agents

• AI agents will increasingly shop on behalf of consumers, understanding individual preferences, purchasing habits and brand affinities - fundamentally changing how products are discovered.
• Discoverability will rely less on traditional SEO and more on third-party validation. Structured listicle content can be optimised to surface in AI search results.
• AI adoption varies significantly by region - brands should tailor their approach to local consumer behaviours rather than applying a single global AI strategy.
• “You must know who you are, who you are building for, what you care about and how you differentiate. Ensure you stay ahead of the technology and build a journey for both humans and AI,” said Thacker.

For more information, visit businessoffashion.com.