In 2018 L’Oréal Group acquired Modiface, a Canadian company specialized in augmented reality and artificial intelligence applied to the beauty industry. It was the first time in more than ten years that the company bought a technology brand. It did so to strengthen its innovation, but above all to solve a business need identified by marketing: the lack of consumer knowledge.

L’Oréal, despite being one of the leading firms in the sector, did not have enough information on consumers, since having most of its business intermediated by retailers, these are actually clients of its clients. The acquisition of Modiface allowed the development of experiences and services and, therefore, had a pretext to exchange value directly with the consumer and obtain valuable insights. The development of these services also became a line of business, since the option of selling the technologies to retailers was opened.

It is the reflection, in the eyes of Jaime del Valle, Global Head of Generative Engine Optimization at L’Oréal, of the transversal nature of marketing, of its potential to influence the M&A (Mergers and Acquisitions) strategy of a company, its diversification strategy or even its business model.

This was stated by the manager in response to one of the questions posed by reason.Why in a new installment of the Nova Marketing Leaders podcast, hosted by marketing consultant Jesús Cubero. On this occasion, the episode was recorded at the L’Oréal headquarters in Paris and included the participation of Ramón Rodrigáñez, CEO & Co-Founder of Nova, and Josef Brocki, Founder & CEO of Evolve. Participation in this space is part of the contribution to the profession that we have made since reason.Why in different contexts.

The transformation from marketing

According to del Valle, this transversal capacity of marketing, to go beyond campaigns and products, can find a parallel in industry professionals. His career is an example of this: after holding positions linked to international marketing in companies such as Chevrolet or General Motors, and leading the growth of the aforementioned Modiface, he is now responsible for L’Oréal’s GEO (Generative Engine Optimization) strategy.

At different stages it has promoted innovation and change projects, which has forced it to continuously train and transform and, at the same time, has specialized in transformation. And at all times he has drawn on the various skills that can be developed and obtained working in marketing. “A transformation is more than technology, it is a transformation of people.””, he commented during the podcast.

It highlights a series of key ingredients to achieve a successful transformation. An essential part of the process is communication and narrative, that is, the construction of a storytelling that reinforces issues such as motivation, the reason for being and the objective of the transformation. Another aspect lies in the generation of desire, that is, once the impact of the change is understood, convincing the team of the value of being part of it.

In addition, there would be a phase, which could be aligned with the go-to-market, which should focus on training and providing professionals with the necessary resources and means to carry out the change. And, finally, it is essential to monitor the transformation, a kind of active listening, measurement and analysis, to guarantee that the transformation is sustained over time and the business objectives set have been achieved.

“Driving change is asking the team to see something that doesn’t exist yet and want it to exist. For this, it is key to tell a narrative that convinces, because it is essential to work with influence“, says Jaime del Valle during the conversation. “And influence includes being trusted, inspiring with a vision. That ability to create stories that mobilize, that connect people, ideas and concepts, is what makes it easier to take the leaps.“.

Artificial intelligence and consumer revenge

Artificial intelligence has been part of many of the transformations that the manager has undertaken in recent years. What’s more, in the position he has held since September, he is responsible for promoting L’Oréal’s positioning in new AI tools and services, which have already become the main information search engine for thousands of people around the world.

During the conversation, he explains that his mission is to ensure that the responses offered by these platforms include the group’s brands and products, and that this presence is dominant, relevant and positive. However, he points out that the work goes beyond that, and implies assuming that the way in which consumers discover products and brands is completely different, that it will continue to change and impact the purchasing process.

He maintains that a new layer of connection is being created between brands, products and consumers and that being part of the responses of the tools is one of the great challenges for companies in their business, growth, penetration and acquisition strategies. “There is a technical component related to content, platforms, data, technology, but the main thing is to involve all those responsible so that they understand that it is a conversation about business, penetration, consumer acquisition and, basically, whether or not it is a relevant brand, whether or not it is a visible brand.”, he explains.

In Jaime del Valle’s opinion, the main challenge when it comes to positioning in AI tools is more related to “do things right“at the business, consumer, campaign and product level, which with the optimization of online platforms. The manager considers that those brands that have worked correctly will be well positioned for the LLMs (Large Language Model).

In this sense, he points out that AI will bring a return to the basic principles of marketing, referring to a value proposition around products that solve real problems, an ethical, responsible and sustainable activity, solid perception and reputation, and good consumer service and customer experience.

AI will also bring with it what the manager calls “consumer revenge.” “We have been asking consumers for data for the last twenty years. What is their name, who are they, what is their email, what have they bought… All this with the promise of a hyper-personalized experience that in some cases has not been returned“del Valle says during the podcast.”Now it is the consumer who is going to ask us for the data and AI is going to help them. If companies have not made their data, their information, visible, real and accessible, the consumer will not see it.”.

Curiosity as a guide

The conversation between Jaime del Valle and Jesús Cubero also addresses the learnings that the manager has acquired throughout his international professional career and how this has influenced his form of leadership. He assures that his time in multiple companies and markets has given him greater ability to work in multicultural teams, adaptation, or empathy.

For example, the time spent in Canada as part of the Modiface team stands out. “I learned the importance of work-life balance and how important it is for mental health.“, comments the manager. “Being in a start-up was also refreshing, a reality check in a good way to understand how short a path there can be between having an idea and doing it and seeing the impact. That transformed me and created a new standard for me.”.

His journey has also reaffirmed the importance of curiosity, of genuine and humble interest in learning, and of the value of the so-called “soft skills”, or soft or social skills, those that he considers can “travel” in time and space. “I think that the university degree is no longer as important as it was years ago. Technical knowledge is still fundamental, but now I find life experiences extremely important, those complementary things that you have learned or done to go one step further.”, he points out.

That is why it looks for professionals with the ability to connect with business ideas, marketing and consumer problems; with little ego, who works as a team, and who is curious. “We are in a moment in which we are going to have to work in a very collaborative way, using the capabilities of others and making transversal connections.“, comments Jaime del Valle. “You have to be humble to identify what you don’t know, but also curious to want to learn it. I believe that marketing teams should be the most curious in the entire company and be able to impact and influence the different parts of the value chain.”.

You can listen to the full conversation here: