It shouldn’t come as a shock to anyone that the beauty and cosmetic industry is immensely competitive. Fuelled by the rise of social media and influencers, more and more brands enter the market daily. Although it may seem like a daunting market to crack, its rapid growth also presents a lot of opportunities beauty merchants could be missing out on.
This blog post shares examples from brands in the beauty and cosmetic industry, who are using their loyalty program to harness the power of their already existing and loyal customer base.
The brands we’ll be exploring are:
Many customers want to feel part of something bigger. They don’t want to be defined as their individual purchases but instead the relationships they have with brands.
“If people believe they share values with a company, they will stay loyal”
Howard Schultz, former Executive Chairman, Starbucks
Annmarie Skin Care has used its loyalty program to build a circle of faithful customers with its “Wild and Beautiful Collective”. Members in higher tiers receive exclusive perks such as access to an exclusive Facebook group – where members can share beauty secrets, free ebooks and more!
Fostering a sense of community in beauty is incredibly important. Today’s beauty shoppers take to the public stage of social media to share their passions with like-minded individuals. Plus, the beauty community are happy to learn and thrive from each other through discussion groups and tutorials. The “Wild and Beautiful Collective” nurtures this feeling of inclusion and community through its name and mission.
Annmarie Skin Care’s community approach to loyalty speaks volumes. Members of their collective spend, on average, 140% more than non-members.
A loyalty program offers a great branding opportunity. It allows you to show your personality, and portray who you are – from the products you sell to the customer experience you serve up.
Beauty Bakerie makes use of our integrated loyalty program to let their personality shine through.
The colours are bright and the messaging is youthful and fun-loving – just like their brand. They’ve also used their loyalty program to celebrate that their products are all inspired by baked goods naming their top tier “Cake Boss” and their program “Baked rewards”.
Omnichannel is currently on everyone’s lips. Online and offline interactions are becoming increasingly entangled and merchants are working to bridge the gap.
An omnichannel loyalty experience is one that recognises an individual as the same person wherever they’re shopping – be that in your brick-and-mortar store or on your site. By recognising customers in this way, you’ll be showing that you care about them on an individual level.
100% Pure successfully married its in-person and online loyalty experience with the help of “multi-link”.
This meant that the cruelty-free make-up brand could connect their loyalty program across 12 physical locations and their ecommerce store. All shopper purchases were recorded in the same place meaning that store assistants could find any shopper’s account, no matter where it was created or where they purchased.
As a result, 100% Pure could recognise their shoppers as the same person in store and online – showing that they valued each and everyone as an individual.
Beauty products have a high purchase frequency and, once a customer finds their perfect product, they’re willing to stick by it.
This is exactly why the beauty industry is perfectly suited to the rise in subscription-based services. Not only was the new trend fuelled by cosmetics from the outset (Birchbox, anyone?) but beauty-lovers appreciate their much-loved products to be delivered right to their door.
Velour Lashes have made the most of the opportunity the subscription-box market poses by adding an “Auto-restock” tier to their loyalty program.
Members who are subscribed to any product are placed in this tier and receive gift cards, free shipping and a “Velour Lash Book” as a thank you for their continued purchases. This exclusive tier encourages their already loyal customers to sign up to automatic repeat purchases. And, as a result, Velour Lashes benefits from customers tied into long-term purchase cycles and repeat purchasing.
With the beauty and cosmetics industry being so competitive, it’s the stores that make their customers feel special that will attract more shoppers.
Tiers naturally boost customer engagement as the desire to move up, and unlock more exclusive and experiential rewards, encourages customers to add more to their carts and interact more.
Mirenesse’s “Love Rewards” loyalty program makes the most of loyalty tiers to make their customers feel special. Customers fall into the “Onyx” tier as soon as they become a member where they receive one point for every dollar spent. Mirenesse also allows customers to pay $10 to become a member of their exclusive “Gold” tier.
In exchange for this payment, customers get additional perks; such as two points for every dollar spent, access to secret sales and a tester panel where they can trial products before anyone else.
These premier benefits tempt customers into paying more to become part of the exclusive club. At the same time, Mirenesse has secured a collection of loyal customers who are committed to them long-term.
Hopefully, these examples have shown you the potential you could unlock by adding a loyalty program to your beauty and cosmetics store.
Ready to get started? Book a demo with a member of our sales team today. Or, visit the LoyaltyLion Academy to become the go-to loyalty expert in your business.
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