L’Oréal Chile leverages the power of GenAI to capture social-commerce opportunities 

Summary

NTT DATA has created Lore, L'Oréal's virtual assistant, to change the world of beauty and take communication with its customers to a new level. Lore provides advice and recommendations focusing on the world of beauty and also helps users in the purchasing process, improving the customer service experience. The solution is powered by eva, the conversational platform that uses artificial intelligence with GenAI, capable of understanding and delivering hyper-personalized responses that unfold in a conversation with users via WhatsApp and Instagram. Lore is available 24x7 for all the brand's customers, thus achieving loyalty and positively impacting the customer experience.

Taking customer engagement to a new level

L’Oréal Chile wanted to drive deeper and more meaningful engagement with customers, who were more open to considering products and making purchasing decisions when using platforms such as WhatsApp and Instagram.

To capture this rich social-commerce opportunity, NTT DATA combined the capabilities of Syntphony, our conversational AI platform, with the power of Azure OpenAI generative AI technology to create Lore – a virtual assistant that offers customers beauty and makeup advice and recommendations. 

Lore has revolutionized L’Oréal’s social-commerce strategy and is an essential tool in their digital transformation. This pioneering development has demonstrated how companies can revolutionize the way they communicate and engage with their customers through AI.

From simple answers to personalized advice: a constantly evolving solution

The first step on this cocreation journey was to create a bot that could answer customers’ queries and allow them to shop on the virtual channel at the same time – and in real time.

Then, the emergence of GenAI made it possible to take an exponential leap forward by building on the concept of the "digital human". Azure OpenAI technologies enhanced the skills of the original bot and generated additional benefits, such as a significant reduction in training time compared to previous models. Furthermore, Azure OpenAI services guarantee the protection and security of data, giving consumers confidence and trust that their personal information is not at risk when they use the tool.

"The Lore project led us to think about how these technologies could improve our business and how we should focus on what language to use," says Francisca Unda, Key Account Manager at L’Oréal Chile. "It started as a dream, and now we have a humanized solution allowing customers to get the best of two worlds: beauty and technology."

A world of conversations
Lore interacts seamlessly on WhatsApp and Instagram and answers context-specific questions – in natural language – such as:

• How should I do my makeup for a wedding if my dress looks like this?
• What should I wear for a job interview if I don’t like to wear a lot of makeup?
• Which makeup tips and tools should I consider for a costume party?

With the ability to understand nuanced contexts, Lore can provide accurate and highly personalized advice on makeup and skincare – and goes a step further by recommending products that are customized to each customer’s needs and circumstances, ensuring a seamless and intuitive shopping experience. A straightforward interface significantly reduces user resistance: customer adoption of Lore has been impressive.

For L’Oréal Chile, this opens the door to having millions of insightful one-on-one conversations with current and potential customers across the country.

Obsessed with consumer engagement

"We’re obsessed with raising awareness of our brands, gaining penetration and, above all, generating consumer engagement," emphasizes Wong. By collecting valuable data from consumer conversations, Lore has functioned as a catalyst for L’Oréal Chile to.

In its interactions with customers, Lore gathers a large amount of data that will fuel the model to understand users better, generate tailored and low-intrusive actions, and provide better answers, helping consumers with their needs in an even more precise way.

"It’s fascinating to witness consumers’ satisfaction when they receive recommendations from Lore and realize this is exactly what they’ve been looking for and they can buy it immediately. And then, after being delivered on time, that the product does exactly what was promised," says Wong.

This collaborative project demonstrates how an experienced technology partner with extensive knowledge of market trends is essential to not just adopting emerging technologies but turning them into business value.

• Generates accurate, tailored and low-intrusive actions
• Helps customers answer questions or help with precision
• Azure OpenAI services guarantee data protection and security
• Interacts seamlessly on WhatsApp and Instagram and answers context-specific questions