Back in 2015, L’Oréal, one of the world’s oldest and largest beauty and cosmetics companies, which owns over three dozen brands including Maybelline, Kiehl’s, and Lancôme, did something revolutionary. It launched Makeup Genius, an augmented reality app that allowed users to try makeup virtually using their phones. It was hugely successful; downloaded millions of times by users across the world.

L’Oréal saw the digital revolution coming and recognized it as the key to engaging younger audiences, who not only feel more comfortable in digital spaces but are also often not given the attention they deserve when they shop in-store. The downside was that online shopping came with exceedingly high return rates, which was not good for the company or the customer experience.

With Makeup Genius, L’Oréal helped customers find makeup that matched their skin type and tone without having to leave the comfort of their home by using AR. This opened them up to greater product selection and helped them gain confidence in their purchases, minimizing return rates.

In doing so, L’Oréal demonstrated that putting your customers first means embracing their data, not just to track but to better understand their needs and solve their problems.

Makeup Genius took away the hassle of the in-store experience and, at the same time, enabled L’Oréal to gather rich insights, including valuable facial data. It also enabled L’Oréal to engage directly with customers, who traditionally had engaged with the retail outlet, not the brand, and cut down on customer returns.