Loyalty programs continue to be an important tool in today’s marketing arsenal because they attract buyers. Customers are no longer just shopping around for the best price or the company that has the best customer care. They also want to know their shopping trips are valued and they will have incentives if they keep spending. For this reason, companies are implementing loyalty programs that do everything from offer money off on future shopping trips to earning gift cards and other perks.
Ulta Beauty is one company that’s seen a lot of success with its loyalty program. The retailer offers a mix of high-end and drugstore cosmetics, fragrances and hair care items and targets a wide age group of diverse female shoppers.
The industry for beauty products is experiencing massive growth and sending shoppers out in droves to pick up the hottest items that beauty influencers are touting.
Add to this a chance to earn points, get free perks and discounts - and shoppers can’t keep out of the company’s store.
A recent article on Loyalty360 looks at the impressive growth of Ulta Beauty’s Ultamate Rewards loyalty program since it was rolled out to all markets in 2014. The company adapted from prior rewards programs where limited free items were given to shoppers after spending a certain amount. Answering to the need for better options, the program now makes it possible to instead earn a free gift on a member’s birthday, access to special events and the chance to earn more points and even go Platinum after spending $450 in a calendar year.
Listening to what customers want isn’t the only thing the company is doing to win customer loyalty. According to the Loyalty360 article, it’s also
embracing beauty influencers and recently hosted a Snapchat takeover with Jenny Fox and has over 2.6 million followers on its Instagram account.
Ulta Beauty CEO Mary Dillon talked more about the success of the company’s loyalty program during its most recent earnings call, saying the program was a, “key driver” for the company’s third quarter performance. To help grow the performance of the loyalty program Dillon said the company focused on delivering more targeted offers to each shopper and investing more heavily in marketing via radio, television and digital.