Dive Brief:
- Ulta Beauty plans to launch an expanded customer loyalty program starting next year. The beauty retailer’s Ultamate Rewards loyalty program will relaunch with a new look, feel and a new name, Ulta Beauty Rewards.
- Existing loyalty benefits will remain. In addition, starting next month, the relaunched program will provide an enhanced birthday offering for members. Instead of offering one predetermined product during members’ birthday month, participants will now be able to select a gift from a portfolio of brands across categories.
- Ulta also said it plans to raise loyalty program awareness and engagement through initiatives in-store and on its social and owned channels.
Dive Insight:
Ulta’s loyalty program launched in 2014. In about a decade, it’s grown to 42.2 million active members, according to the company.
“The enhancements we’ve made to Ulta Beauty Rewards go beyond a new name; they reflect the wants of our most loyal guests and importantly showcase just how much we appreciate them,” Kelly Mahoney, senior vice president of customer and growth marketing at Ulta, said in an announcement. “We can’t wait for new and existing members to discover why millions of people nationwide love Ulta Beauty Rewards.”
The loyalty program’s existing benefits include points on every purchase, additional benefits for members who reach platinum or diamond status, accelerated earnings with the Ulta Beauty Rewards Credit Card and the ability to redeem points on beauty products and salon services.
“In a time where some loyalty programs are giving less, Ulta Beauty Rewards is proud to give the same amazing benefits our members love, in addition to an even better birthday experience,” Mahoney said. “For years, we’ve been building our best-in-class program to reflect the ever-evolving needs of beauty enthusiasts and we strive every day to win the hearts and minds of the beauty community by rewarding them with more of what they love.”
Ulta recently reported another quarter of growth. Third-quarter net sales rose 6.4% to $2.5 billion. Comparable store sales grew 4.5%, on top of 15% growth last year, while net income rose 10% to $249 million.
CEO Dave Kimbell described Ulta’s loyalty program as "key to our business and our success" during the last earnings call. The loyalty program ended the quarter 8% higher from last year driven by retention of existing members and new membership. Kimbell also said spend per member is healthy and driven by greater shopper frequency.
The retailer is growing its product and brand offering. Skin care brand OleHenriksen on Monday announced it will be in 700 select Ulta stores and online starting in January. The Olehenriksen assortment will include a variety of the brand's best-sellers along with new product launches and exclusives set to debut throughout next year.
