Customer feedback: Snapchat shares dive as redesign disappoints users

By Sarah Parsons | Published: 2-May-2018

Beauty fans and consumers were left disappointed by the social media app's redesign, but could Clairol boost profits?

Snapchat’s controversial redesign, that left many users disappointed, has helped the app’s parent company shares fall by 17%.

The firm announced today, that in Q1 2018, Snap Inc’s revenue jumped from $149.6 to $230.7m in Q1 2018, but failed to meet Wall Street’s estimate of $244.5m.

The number of daily active users on Snapchat – a vital pillar of the firm’s advertising business model – reached only 191 million, up from 187 million, it’s slowest quarterly growth rate ever.

According to Reuters, Snap Inc acknowledged that the redesign was partly responsible for the Q1 results.

“The redesign lays the foundation for the future of both our communication products and our media platform, and we look forward to doubling down on both,” said Evan Spiegel, CEO of Snap Inc.

More than one million people signed a petition calling on Snap Inc to revert back to its previous design.


Spiegel explaining the changes in November.


The creators of the petition on change.org claimed that the redesign created “a general level of annoyance among users” and that “many new features are useless or defeats the original purposes Snapchat has had for the past years”.

Celebrities also publicly criticised the redesign, in February, a tweet by beauty brand owner Kylie Jenner reportedly helped to wipe $1.3bn off the company’s market value.

"Sooo does anyone else not open Snapchat anymore? Or is it just me... ugh this is so sad," she said.

Another tweet said: "Still love you tho snap ... my first love."

Craving sales

In a bid to boost profits and stave off competition from tech companies, such as Facebook and L’Oréal-owned Modiface, Snapchat unveiled a new shoppable AR feature last month.

The social media firm announced Clairol as the debut beauty brand – along with Adidas, game developer King and film distribution company STX entertainment – to kick off the new in-app option.

Available to Snapchat users in the UK and the US, consumers are now able to buy products via a new solution on the messaging and camera app.

Customer feedback: Snapchat shares dive as redesign disappoints users

The technology works by letting marketers add a 'button' onto any AR lenses they are running on the app, which can direct users to online stores or apps.

Clairol created an AR selfie lens to promote its temporary hair dye line, Color Crave, in the run up to festival season.

“Showcasing product use through our campaigns in a seamless and scalable AR experience is an important way to bring the fun of beauty to life,” said Steve Indich, GM of Coty-owned digital marketing agency Beamly.

“There is so much opportunity with digital experience, especially due to the barriers of being able to try on products when in store.

“With market-ready solutions such as lenses and the ability to now shop those experiences, we are gaining insight to how we can not only earn consumers attention but also be part of their evolving path-to-purchase.”

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