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Ulta captures the frequent buyer with its loyalty program

Cosmetics are becoming a "super consumable" with enthusiastic shoppers buying more often and trading up to more expensive products as they enjoy the extensive customer service available at brick-and-mortar stores like Ulta. Ulta is also making sure the online channel is available in-store, enjoying major growth on mobile device orders. Finally, they have figured out how to leverage the gift-card connection, distributing gift cards to those retail racks we see in the grocery store. 

RIS News: Ulta Solves the Loyalty Puzzle, 2018-Jun-4 by Tim Denman

With over 28 million active users, Ulta has a massive opportunity to track, analyze, and gain actionable insight from its loyalty program. The retailer is investing in its AI capabilities in this key area to further personalize the experience for its shoppers.

Ulta is doing a great job converting casual shoppers into loyal brand fans, fueled in part by its exploding gift card business ― gift card sales increased 45% in Q1. In 2018, the retailer plans to add another 15,000 partner locations to sell its gift cards, a key initiative since the sale of the cards is “driving significant incremental sales and margin dollars,” Dillon says.

Quartz: The one retailer that Amazon can't seem to destroy is in cosmetics, 2018-May-28 by Helen Edwards & Dave Edwards

Ulta Beauty is described as “one of the best growth stories in retail” by UBS, which sets the market for beauty products and services at $139 billion in 2017 and growing. It is growing even as Amazon aggressively expands, powered by a combination of new store openings, exclusive product selection, and a successful loyalty program that supports e-commerce and prestige purchasing. The company also just cracked the Fortune 500 list, securing its place amongst the country’s most successful companies.

Refinery29: Ulta's Revamped Membership Program is a Beauty Lover's Dream, 2018-Jan-4 by Samantha Sasso

As far as loyalty programs go, Ulta Beauty's is among the best. If you're willing to cash in those catalog coupons every month, you might as well earn some moolah while spending half of your paycheck on mascara and luxe shampoo bottles.

Coresight Research: Beauty Loyalty Programs: Sephora Vs. Ulta, 2017-May-5

ULTAmate Rewards: Ulta’s Ultamate Rewards program features value-related rewards, such as points for discounts and extra points accrual for higher-tier members. Indeed, most of Ulta’s customers cite price and promotions as reasons they shop there, according to Prosper Insights Monthly Consumer Survey. 

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