As a privileged contributor, I had the honor of sharing insights into the AI-driven revolution in the beauty industry marketing. This featured article, presented in collaboration with The News Lens, explores how AI is reshaping traditional marketing strategies in partnership with Ming Liu Group and Miracle AI. Now, let's delve into the details of this transformative journey.
In 2022, I led the Miracle AI team to achieve outstanding results with companies in Taiwan, and our team received recognition from The News Lens, a prominent digital media platform in Taiwan renowned for its comprehensive analysis across various topics. The News Lens, as a platform that promotes diverse perspectives, holds a significant position in Taiwan's online media landscape. The News Lens report highlighted Miracle AI team's cutting-edge approach in applying AI to precision marketing in the beauty salon sector, showcasing the transformative potential of technology in traditional industries. The Miracle AI team successfully partnered with Ming Liu Group, which operates over 200 salons, including renowned brands such as "Ming Liu," "Joetsu," "PS Hair Design," and "AT Hair Design." Through meticulous data integration and analysis, the Miracle AI team significantly improved online ad effectiveness, achieving a remarkable increase in data usability from 50% to nearly 100%. By addressing industry-specific challenges like seasonal visit patterns, the Miracle AI team provided invaluable insights for targeted advertising, illustrating how AI can revolutionize traditional marketing efforts and attract potential customers to salons.
Here is the translated full text of the report (link):
Exclusive! AI Talent Show Want to change your hairstyle?
The beauty industry uses AI precision marketing to attract potential customers.
November 25, 2022, The News Lens
What we want you to know is, when you step into a beauty salon and get a stunning new hairstyle, how long will it be before you schedule your next appointment for cutting, styling, or hair treatment? This is the information that beauty industry professionals are eager to understand to precisely target their marketing resources by comprehending customer profiles and visit frequencies. Ming Liu International has accomplished this by accurately predicting the reach of online advertisements, attracting more potential customers to their salons.
In the realm of digital marketing, the challenge lies in how retail businesses can collect and analyze user data behavior to achieve precise advertising marketing. Ming Liu International, with multiple branches across Taiwan, lacked a dedicated data analysis team, resulting in underutilization of valuable member data. Fortunately, through collaboration with the Digital Industry Development Bureau's "AI Industry Practical Application Talent Refinement Program" and an AI startup team, Miracle AI team, they enhanced their advertising reach and improved advertising effectiveness.
By seamlessly connecting online and offline data to predict advertising effectiveness with a single click, during the initial three-month conceptual verification phase, the Miracle AI team discovered that Ming Liu's data usability was only around 50%. The primary reason was incomplete filling of various fields in the POS system. For instance, when customers checked out, they were required to provide basic information, but essential fields like age and gender were often omitted. After identifying and rectifying this issue, data utilization increased to nearly 100%, making it usable for AI models. They integrated online and offline data by creating an API, enabling them to predict advertising reach with just a few parameters.
For example, if a particular branch's main customer demographic is 18-30 years old, predominantly female, and they visit the salon approximately once a month, targeting online advertising towards this customer profile can optimize business performance by attracting potential customers with similar characteristics.
Furthermore, the Miracle AI team integrated Ming Liu's historical advertising records on Facebook, including the target audience and their reach and conversion rates. They combined this online data with the aforementioned offline data from the POS system and utilized AI models for analysis, enriching the data and enhancing the accuracy of AI predictions.
AI handles industry-specific fluctuations in customer traffic during peak and off-peak seasons, which is another unique aspect of data variation that requires interpretation by AI. This involves analyzing time-series clustering due to the beauty industry's susceptibility to holidays and seasons. For instance, during spring and summer, there is a higher frequency of haircuts, while in autumn and winter, the intervals between visits are longer. However, there is another peak before the New Year. "This industry-specific characteristic must be communicated to the client to be understood, and this is also the most valuable aspect of the AIGO platform, as it matches industry characteristics with talent collection," emphasized the Miracle AI team.
The use of AI to assist in analysis offers an advantage by eliminating human subjective biases. For example, a particular branch may have primarily targeted young women in their advertising strategies, but the AI model revealed that the store actually had a significant male customer base. This unexpected discovery underscores the importance of combining AI with industry insights to identify existing blind spots and enhance marketing effectiveness.
AI predicts online advertising reach with an accuracy of up to 94.5%. Following the successful initial concept verification, Miracle AI and Ming Liu International have entered into the second phase of their collaboration - automation. This involves automatically importing real-time information from store customers and Facebook advertisements into the AI system for analysis, enabling the AI model to continuously learn and further improve accuracy. The Miracle AI team stated, "It's thanks to the AIGO competition platform that we can unlock such promising collaboration opportunities, allowing domestic AI talent to gain a deeper understanding of industry needs and acquire practical skills."
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