New pathways to customer loyalty in the beauty and cosmetics industry

The beauty and cosmetics industry has successfully banked on people’s well-being for centuries. It’s a company where curious beauty seekers and savvy beauty lovers willingly opened their wallets and paid at all costs – even if that beauty caused them pain. So it’s no wonder beauty is big business.

From: Janis MVK

The marketing of beauty products has escaped traditional methods and is exploding into new channels. While everyone seems to be an expert makeup artist and beauty influencer on social media like YouTube, Instagram, and TikTok, celebrities and influencers are coming up with makeup lines and beauty products, encouraging followers to satisfy their vanities with everything. except filling. This is real guerrilla marketing and advertising at its finest. And with all this digital marketing available to brands and with so many products for consumers to choose from, beauty brands are trying to retain newly acquired customers, a particularly notable challenge in this superficial market.

The beauty and cosmetics industry has a history of operating loyalty programs and recently the industry has revamped its loyalty program offerings to build customer loyalty and engagement more than ever in order to stay on top of the competition. Here we take a look at how the beauty industry has recently adapted its approach to customer retention.

Personalized approach to beauty loyalty

Both multi-brand retailers and individual brands have taken a personalized approach when it comes to increasing customer engagement and loyalty. Using data analytics and critical metrics, brands have been able to dig deeper into consumer interests, personal information, and consumption habits to engage shoppers with a targeted approach. If executed correctly, personalization encourages consumers to come back for more, while keeping the brand top of mind.

Aveda has been a mainstay in the beauty and hair game for decades, and for the first time in 20 years, they’ve revamped the Aveda Pure Privilege loyalty program. The new program, now known as Aveda Plus Rewards, offers amplified benefits to members who take a more personalized approach to rewards. To encourage members to redeem rewards more frequently, they now offer members a birthday gift and free (or discounted) services as redemption options. Additionally, customers now have the option to convert accumulated reward points into dollars to make a purchase. To truly connect with its customer base, Aveda has even partnered with like-minded brands like plant-based meal services and fitness memberships, focusing on what matters most to people. their clients. And through continuous analysis of customer buying habits, Aveda has added product recommendations based on customer purchase history.

Sephora, a French multi-brand retailer known worldwide as a one-stop-shop for beauty and personal care products, has a personalized three-tier loyalty program, The initiate of beauty. It is designed to provide a sense of status and exclusivity to loyal customers. The program is free and anyone can join. The more you spend per year, the higher your status and the more offers you receive. What Sephora has mastered is the art of knowing the demographics of its customers. So much so that they structure their loyalty program around critical data such as member buying behaviors and purchase history to personalize the shopping experience.

By personalizing the Beauty Insider program, loyal members enjoy select birthday gifts and free samples based on their purchase history. Sephora prides itself on focusing its loyalty program on exclusivity and the emotional components that build customer loyalty. Thoughtless incentives only have a short-term impact, while emotional incentives, like personalization, have a long-term impact, which facilitates consumer loyalty.

Commitment in modern times

Building a face-to-face relationship with consumers is already a challenge, especially in the digital age. So when it comes to building a relationship with consumers through modern devices, it can be even more difficult. It’s important for brands to constantly engage with consumers to keep them active. By making brands easily accessible, consumers often leave the experience with lasting impressions. What better way to keep them hooked than to make the overall shopping experience easy and accessible?

Sephora (Southeast Asia) wanted to expand its marketing reach and decided to target its customer base who mainly shopped in physical stores. This particular demographic hadn’t downloaded the mobile app, but by establishing an SMS call-to-action when signing up new members, Sephora was able to reach a new audience with a 50% increase in digital brand engagement and an increase in app downloads.

Estée Lauder, a leader in the luxury beauty and cosmetics industry, has also successfully engaged with its consumers through its E-List Loyalty Program. They offer surprise and bonus points, points for writing product reviews, bonus points for auto-restock orders, events where consumers can earn double points, and more.

Discover the lifestyle

Some beauty brands are considering alternative loyalty solutions by offering VIP experiences or offers for consumers who spend more than the average.

For example, Kiehl’s, an American cosmetics retailer specializing in skin, hair and body products since 1891, does so through Kiehl’s Rewards. Not only are members rewarded with expenses, but also with invitations to special events. These VIP events not only serve to thank and recognize members for their business, but are also a way for Kiehl’s to promote and educate a lifestyle concept.

With French luxury perfume and cosmetics brand, Lancôme, part of its customer experience is sustainability, recycling, recharging and empowering women. Lancome Elite Rewards succeeded by studying its demographics and staying true to its core brand values. In the process, they honed in on what matters to its consumers and shaped its future in the industry.

Through data analytics, these cosmetics and beauty brands have accelerated their ability to personalize their approach, deliver experiences and build engagement. Add a layer of education and great service, and you have the range of key elements that these beauty brands have created successful loyalty programs through.

Janis MVK is a writer and content manager, journalist, marketing and communications professional and mother of two beautiful daughters, based in the suburbs of Chicago.

New pathways to loyalty in the beauty and cosmetics industry

Joseph P. Harris