Success Stories
From Tradition to Innovation: How a Local Pharmacy is Shaping the Future with AI-Powered Skin Analysis
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A Digital Transformation with Real Impact
Germany’s pharmacy landscape is undergoing rapid change. Faced with increasing workloads, a shortage of skilled workers, and growing competition from online mail-order pharmacies, brick-and-mortar pharmacies must find new ways to meaningfully combine customer proximity, expert consultation, and modern technology.
In these dynamic times, one dedicated local pharmacy is setting an innovative example: By implementing an AI-powered skin analysis tool both in-store and on its website, the pharmacy has not only embraced digital transformation — it has created an experience that excites customers, eases the burden on staff, and measurably boosts revenue.
Digital skin analysis is no longer just a gimmick. A recent Bitkom study (2023) reveals that 67% of consumers want digital services from pharmacies, especially in the areas of prevention and consultation. What’s particularly in demand are easy-to-use self-analysis tools that offer personalized product recommendations — a trend this forward-thinking pharmacy identified early on and has been consistently implementing since May 2024.
Starting Point: A Regional Pharmacy Facing Rising Expectations
As a long-established healthcare provider this pharmacy set out to offer its customers more than just the traditional pharmacy experience.
The goal:
Enhance the in-store experience.
Strengthen the online presence.
Enable targeted, results-driven consultations through a digital tool.
The solution: The implementation of a skin analysis tool from IQONIC.AI, live since April 2024 — available both in-store and integrated into the pharmacy’s website.
Implementation: AI-Powered Skin Analysis – In-Store and Online
Since May 2024, customers have been able to use an intelligent skin analysis tool directly at the pharmacy or via its website. Through a self-service process, users can analyze their skin — and based on their individual skin profile, they instantly receive personalized skincare recommendations, all without needing an appointment or professional consultation.
The results provide:
A precise classification of skin type (e.g., oily, dry, combination).
Identification of skin concerns (e.g., acne).
Personalized product recommendations — tailored to the pharmacy’s product range.
Measurable Results – A Look at the Numbers
The progress since the tool's introduction speaks for itself:
This success isn't a one-time effort but an ongoing process—technologically and in how customers are engaged. There are clear distinctions between in-store and online usage.
In-store, visibility is key: clear signage and intuitive placement are essential, and team members help lower the threshold for participation with personal guidance.
Online, trust in the platform and clear instructions are critical. Transparent processes, supportive content (e.g., videos, testimonials), and targeted communication help drive engagement.
Continuous optimization of both channels has led to increased adoption and long-term success. Regular user feedback, scan data analysis, and ongoing adjustments to the user flow ensure continuous improvement.
Scan Performance Since Launch
(April 2024):
Skin Type Distribution:
Identified Skin Conditions: 14%
Of which acne cases: 83%
Conversion Rates Compared – Online vs. In-Store
By combining the best of both worlds — online self-service and in-store consultation — the pharmacy was able to significantly increase the conversion rate among users of the skin analysis tool. The direct link between scan results and personalized product recommendations led to measurable revenue growth — both online and on-site.
In the physical store, the conversion rate after using the skin analysis tool is up to 5 times higher than with online use alone. While 5–10% of online users purchase a recommended product, the in-store conversion rate exceeds 30% — especially when recommendations are paired with shelf placements or personal consultation.
The Potential of Connecting Online and Offline Channels
The integration of online and offline channels creates real added value – for both customers and pharmacies. The ability to switch seamlessly between digital entry points and personal contact matches exactly what today’s consumers expect. For example, customers can complete a skin analysis online and pick up the recommended products via Click & Collect – or scan in-store and review or reorder at home. This hybrid model builds trust and increases satisfaction.
A study by iVend Retail shows: Already, around 10% of pharmacy customers actively use Click & Collect services, and the number is rising – a clear sign of the relevance of integrated services. At the same time, connecting both worlds can also provide operational advantages: By consolidating online and offline data, inventory can be better planned, consultation processes more targeted, and the product range optimized based on data. Marketing efforts also become more measurable and personalized.
Last but not least, digital integration strengthens competitiveness: Pharmacies with connected service offerings position themselves as modern healthcare providers who flexibly meet customer needs – whether digital or personal.
Outlook: Future potential through better audience understanding
Implementing digital tools like the skin analysis not only improved service quality but also provided valuable insights into the pharmacy’s customer base. Only through real usage can customer behavior, interests, and needs be systematically understood – both online and in-store.
These insights open new perspectives:
Targeted product expansions based on identified skin conditions or preferences (e.g., anti-aging, acne care, natural cosmetics).
New services such as advanced digital analyses, online consultations, or specialized prevention offers.
Personalized communication with relevant product recommendations, promotions, and information – tailored and delivered across channels.
Long-term strategic planning: Understanding the target audience allows more targeted investments in inventory, consultation, staffing, and marketing.
What began as an innovative skin analysis tool is evolving into a data foundation for customer-centric development. The pharmacy is becoming not just a point of sale, but a provider of holistic, digitally supported healthcare services – focused on the individual needs of local customers.
Results: More Attention, Higher Conversion
The scan acts as an initial “magnetic touchpoint” — both in-store and online. The results speak for themselves:
Increased Traffic: Targeted social media communication and in-store promotion led to a noticeable rise in tool usage. The peak was reached in October with 141 scans — nearly 20 times more than in the launch month.
A Unique Shopping Experience: The tool is seamlessly integrated into the pharmacy’s overall customer experience. Shoppers feel engaged through the digital analysis and receive instant, personalized product recommendations — without having to wait for staff assistance.
Predominantly Self-Service – Relieving the Team: Staff members don’t need to accompany every analysis. They are only needed for interpreting results or answering follow-up questions. This creates more space for pharmaceutical consultations, while also digitally engaging new customers. Thanks to the automated analysis process, standardized consultation steps—such as initial contact tasks typically handled by staff—are efficiently digitized. This significantly reduces the time required from the team in the sales area, especially for frequently asked questions or common skincare recommendations. The time saved can be redirected toward high-quality consultations, individual requests, or service tasks, leading to a more balanced distribution of work across the team and improved overall service quality. In the long run, the use of the digital tool enables a noticeable streamlining of processes without compromising the quality of customer interaction—an essential advantage, especially in times of limited staffing resources.
Service & Quality Remain High: Despite the self-service approach, quality standards are fully maintained: the diagnoses are based on dermatologically validated algorithms with over 85% accuracy. The product recommendations are pharmaceutically reviewed and can be customized within the system — striking the perfect balance between automation and expert knowledge.
A Unique Shopping Experience: Digitalization as a Growth Driver
This pharmacy proves that digitalization doesn’t conflict with personal consultation — quite the opposite.
Key Benefits:
Self-service via scan saves staff time for more in-depth consultations on complex issues.
The in-store experience remains premium: customers feel acknowledged — with no waiting time or pressure.
Linking recommendations directly to products on the shelf enables a seamless transition from scan to purchase — whether in-store or online.
Higher conversion: customers who used the tool were significantly more likely to make a purchase — both in the pharmacy and online.
Efficient marketing: the analysis generated valuable new CRM data, enabling targeted follow-ups via newsletter — boosting repeat purchase rates.
Target Groups – Different Needs, One Solution
Younger customers show a strong willingness to use digital services like online skin analysis, while older customers tend to prefer in-person consultations. The hybrid offering meets both expectations — a future-proof approach to engaging diverse target groups while efficiently expanding the pharmacy’s service portfolio.
Conclusion: A Digital Pioneer in the Local Pharmacy Market
This pharmacy’s case study impressively demonstrates how even smaller, local providers can benefit from digital tools — when implemented effectively.
More Scans → More Attention
Personalized Advice → Higher Conversion
Self-Service & Efficiency → Relieved Staff
Seamless Integration → Enhanced Shopping Experience
The Future of Pharmacy Is Hybrid – Digital AND Personal. This pharmacy is leading the way.
About IQONIC.AI
IQONIC.AI provides white-label AI software solutions for beauty brands and retailers. Their software enables the digital analysis of customers’ skin and hair — either in-store or online. Based on the results, customers receive personalized product or routine recommendations. These tailored suggestions significantly increase the likelihood of purchase, turn casual visitors into loyal customers, and boost conversion rates. Personalized recommendations lead to larger baskets and increased revenue. All solutions are dermatologically tested, highly accurate, GDPR-compliant, and fully tailored to the individual needs, requirements, and target audiences of each client. Integration into any platform is seamless.