Many beauty brands have utilized cashback, points, tiered, and premium loyal programs over the years. But is it enough? As technology evolves, people evolve, including their needs and wants. What drove a customer to purchase a product five years ago may not be the same today. So how do we keep customers coming back? The beauty industry is forever changing because there is always a new trend on the rise. So how do we make our customers feel important? How do we better engage with them? These are all questions brands should ask themselves when working on implementing strategies for customer retention.
Vouge Business recently published a blog named How beauty brands can cultivate hyper-loyal customers. It speaks on how beauty brands have implemented innovative hyper-loyalty schemes to strengthen customer loyalty. Hyper-loyalty creates a customer-centric environment essential when using omnichannel marketing as discussed in my previous blog, Why should your beauty brand implement omnichannel marketing? Vouge states that loyalty cards are typical and ordinary and are no longer sufficient.
“Loyalty goes beyond discounting.” (Morosini, 2021)
Companies such as Ulta and Sephora have developed hyper-loyal customers by implementing loyalty schemes that benefit the company and the customer.
Here are some hyper-loyalty schemes beauty brands are using to increase customer retention and loyalty:
- Offer fractional shares as a thank you for shopping with their brand
- Shoppers gain fractions of Bitcoin when they shop
- Tiered Loyalty Programs
- Partner with influencers to create co-branded collections
Deciding on a strategy will depend on your brand and target audience. Taking the time to find out who your customers are and what they want will be crucial to hyper-loyalty. Organizations should ensure they are rewarding their customers in more ways than one. Offering a discount after receiving so many points from purchases is no longer enough. Customers are engaging on social media and should be rewarded somehow for their contribution. When thinking of strategies, think of all the ways your customers help you and then think about how your company can help them.
What loyalty programs have your brand implemented? Has it increased customer retention, or do you believe it’s time to re-strategize?
References
Bumped. (2022). Case study: Rewarding customers in Ulta beauty stock, up-levels their loyalty and steals 25% of beauty market share from competitors. https://bumped.com/blog/case-study-rewarding-customers-in-ulta-beauty-stock-up-levels-their-loyalty/
Morosini, D. (2021, August 23). How beauty brands can cultivate hyper-loyal customers. Vogue Business. https://www.voguebusiness.com/beauty/how-beauty-brands-can-cultivate-hyper-loyal-customers
