Sally Beauty becomes data analytics provider
The largest omnichannel hair color retailer in the U.S. is partnering with a major retail measurement and consumer analytics firm.
Sally Beauty is building a strategic data sharing and licensing program intended to allow manufacturers to measure comprehensive online and offline sales, as well as determine effective pricing and promotion strategies. NielsenIQ will be the exclusive information provider to Sally Beauty for the program.
The collaboration will include NielsenIQ’s merchandising solutions, including pricing and promotion tools. Already measuring annual beauty and personal care sales, NielsenIQ will measure an additional $2 billion through this partnership. Once fully integrated, Sally Beauty will be operating on a single differentiated visualization platform that contains NielsenIQ’s data assets and products.
Sally Beauty is undergoing a long-term omnichannel transformation that has also included virtual try-on of cosmetics via mobile app and in-store kiosk, as well as a social influencer program and a revamped mobile app and loyalty offering.
More recently, the company has teamed up with Salesforce to implement cloud-based omnichannel enhancements in response to the COVID-19 pandemic. Sally Beauty scaled its online store on Salesforce Commerce Cloud to accommodate the unprecedented surge in demand; and utilizing IBM Sterling Order Management integrated with Salesforce Commerce Cloud, Sally Beauty obtains real-time visibility over store inventory to prevent customers from purchasing out-of-stock items and send notifications when online products are ready for in-store pickup.
Sally Beauty also deployed the artificial intelligence (AI)-based pricing platform from Revionics, an Aptos company, to enhance its pricing performance strategy.
In addition, Sally Beauty is joining a broader trend of retailers transforming themselves into full-fledged technology platforms. Retailers including Instacart, have also been making moves toward transforming themselves into technology platforms. Other examples of retailers plunging into vendor waters include Target’s Roundel digital ad network and Walmart’s GoLocal same-day delivery service.
By becoming a technology provider, Sally Beauty can leverage its own data analytics solution internally to gain competitive advantage. The company also creates a new revenue stream, like that Amazon obtains by licensing its “Just Walk Out” autonomous checkout system to retailers including Hudson Travel.
"As Sally Beauty continues on our transformative journey and builds more strategic and collaborative partnerships with our manufacturers, we are thrilled to begin this new relationship with NielsenIQ and begin employing their comprehensive merchandising tools to facilitate retail success with business intelligence and real-time capabilities,” said Pamela K. Kohn, senior VP, chief merchandising officer, Sally Beauty.
"Consumers have increased their reliance on e-commerce whereby retailers and manufacturers can no longer operate without having a comprehensive, actionable view of their shoppers and consumption patterns," said Tara James Taylor, senior VP beauty and personal care vertical, NielsenIQ. "Our new relationship comes at a critical juncture with the beauty and personal care industry focused on consumer-led growth.”
Sally Beauty Holdings sells and distributes professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group businesses. The company operates approximately 5,000 stores, including 141 franchised locations.