Lessons in Beauty Loyalty with Bare Minerals and Laura Mercier

Ecommerce has emerged within the beauty industry as a pivotal channel for brands to connect with consumers. However, this competitive marketplace comes with its own set of challenges, particularly around customer retention and loyalty. For beauty brands like Bare Minerals and Laura Mercier, loyalty programs have become essential tools for fostering customer engagement and driving repeat purchases.

Orveon, the parent company of both brands, recognizes the unique opportunity to cultivate a loyal customer base that not only enhances the customer experience but also contributes to long-term growth. We recently caught up with their Director of Global CRM and Loyalty, Christina, during our Virtual Conference, Loyalty Connect: Autumn Edition to find out how they navigate the challenges of the beauty market through their loyalty program.

The challenges of the beauty market

The beauty industry faces several unique challenges that impact them within the ecommerce space, including:

• Rising customer acquisition costs: As the beauty market becomes increasingly saturated, the cost to attract new customers is on the rise. Brands need to invest heavily in digital marketing to stand out, making customer retention more critical than ever.
• Shifting consumer preferences: Today’s consumers are more discerning and seek brands that align with their values, such as sustainability, ethical sourcing, and inclusivity.
• Market saturation: With countless options available, maintaining customer attention and loyalty has become a daunting task. Brands must innovate continually to differentiate themselves in an overcrowded market.
• Product differentiation: More and more products flood the market each year, meaning brands have to focus on unique selling propositions to capture consumer interest.

How Orveon manage multiple loyalty programs

Orveon is a prominent player in the beauty industry, encompassing multiple iconic brands, including Bare Minerals and Laura Mercier. By balancing diverse brand identities with a commitment to quality and customer experience, they’re a great example of how to successfully engage a wide range of consumers.

While both brands fall under the beauty category, their customer bases and brand positioning differ, which has a clear impact on their strategies.

• Bare Minerals: This brand has a legacy loyalty program that was in place before Orveon’s transition to a new tech stack, including the LoyaltyLion platform. The program has a strong focus on incentives, offering members exclusive benefits such as access to the superfan panel, early product launches, and other unique experiences. With a broader customer base, the points system is designed to encourage frequent purchases, with a five-to-one points ratio that aligns with its value-focused audience.
• Laura Mercier: As a prestige beauty brand, Laura Mercier attracts a higher average order value (AOV) clientele, leading to a different loyalty structure. The program, which was modeled after Bare Minerals’ successful framework, features a one-to-one points ratio, tailored to the higher spending habits of its customers. The tier structure is adjusted to reflect the brand’s premium positioning, with rewards and point allocations designed to appeal to luxury shoppers.

Managing loyalty programs across two brands means you also need to balance shared strategies with customizations for each brand’s unique characteristics. Here are some of the key approaches Orveon uses:

Leveraging legacy learnings

The success of Bare Minerals’ loyalty program provided a great foundation for designing Laura Mercier’s approach. By bringing in the best elements from Bare Minerals’ program, such as incentivizing engagement through exclusive access and rewards, they established a loyalty program for Laura Mercier that resonated really well with its audience. At the same time, modifications were made to fit Laura Mercier’s luxury positioning, such as a different points ratio and tier benefits.

Tailored customer experiences

Although the core loyalty framework is consistent across both brands, specific adjustments mean that each program is aligned with the respective brand identity and customer expectations. For instance, Laura Mercier’s higher AOV and prestige status called for a more generous points-to-rewards ratio and exclusive offerings that cater to high-value customers, while Bare Minerals’ program is structured to drive frequent engagement with broader appeal.

Consistent loyalty management across brands

While the loyalty programs are different in their structures, the way they’re managed is the same, focusing on driving customer experience and ease of use. Both programs aim to encourage brand loyalty by offering benefits that reflect the unique attributes of each brand while also offering a streamlined and engaging experience.

How to migrate between different platforms effectively

Transitioning between loyalty program platforms can be daunting, so here are some things you might want to consider:

• Focus on active members: Identify the most engaged customers in your previous database and prioritize their migration to the new program.
• Incentivize participation: Offer compelling rewards, such as bonus points or special product samples, to encourage them to reactivate their accounts. 
• Retarget strategically: Use direct communication channels like email campaigns to invite previous members back, highlighting the benefits of the new program and the incentives awaiting them.
• Personalize the offer: Tailor your incentives to make the reactivation process feel exclusive, such as offering a welcome kit or limited-time perks.

How customers can earn points with Orveon 

Both brands offer unique ways for customers to earn loyalty points. Here’s a closer look at their setup:

• Sign up and get started: Customers can earn points just by creating an account, making it easy to start collecting rewards right away.
• Make purchases: As you’d expect, buying products is a major point-earning opportunity. Each purchase brings customers closer to unlocking rewards, making everyday shopping more rewarding.
• Subscription sign-ups: For those who regularly use Orveon’s products, signing up for a subscription service provides an additional points boost. This helps encourage ongoing loyalty and repeat purchases.

While these activities are the main point earners, customers can also collect points through smaller actions that enhance their brand engagement:

• Leave a review: Sharing feedback on purchased products can earn extra points, rewarding customers for their valuable insights.
• Follow on social media: Engaging with the brand on platforms like Facebook or Instagram adds to the point tally, encouraging customers to stay connected with Orveon’s community.

Rewards and incentives with Orveon 

Orveon’s loyalty programs offer a variety of rewards that cater to different customer tiers, providing incentives for everyone from new members to the most engaged customers. Here’s how the rewards structure works:

Tier-based rewards

The programs feature different levels of rewards depending on the customer’s tier. In the lower tiers, members can redeem points for samples, which include a wide array of products that allow customers to try new offerings without committing to a full purchase. As customers progress to higher tiers, they unlock more valuable rewards such as full-sized products, percentage discounts, or dollar-off vouchers.

Product launch incentives

Orveon often uses samples of new product launches as reward, with customers able to choose to redeem their points for these new samples. This means they can try new products without spending money, boosting their excitement around new releases, and encouraging cross-selling. 

High-value redemptions

For customers who have gathered enough points, there are also opportunities to access exclusive or higher-value items, including full-sized products. This flexibility encourages customers to engage more with the loyalty program and gives them a sense of progress as they climb through the reward tiers.

Personalizing loyalty emails with data insights

Orveon uses their loyalty data to build personalized and engaging email communications that keep customers informed and motivated to engage with the loyalty program. Here’s a look at how they do it…

Tier information and progress tracking

Each loyalty email includes details about the customer’s current tier, along with a visual banner indicating their tier position. This banner also shows them how close they are to reaching the next level, motivating them to continue earning points to unlock more rewards.

Dynamic points information

The emails dynamically display the customer’s current point balance and highlight the potential points they could earn by making specific purchases. This personalized touch encourages customers to purchase and engage more with the program.

Available rewards and redemption opportunities

The emails feature rewards that can be redeemed based on the customer’s current points balance, making it easy for members to see what they can access. This includes showcasing samples, full-sized products, or discounts available on their particular tier level.

Early access to launches and events

Loyalty members also get the perk of early access to new product launches and exclusive events. By segmenting the audience based on their loyalty tier, Orveon makes sure top-tier members enjoy special benefits, adding extra value to their loyalty experience. Offering early access to big events, like the biggest sale of the season, has led to impressive growth in loyalty program signups. For Bare Minerals, early access promotions have driven a 300% jump in signups compared to the yearly average, while Laura Mercier has seen a 255% increase.

Special occasion gifts

Emails can also feature personalized offers for annual or birthday gifts, giving customers bonus points or exclusive rewards to celebrate special occasions. This adds a personal touch to the program and makes the experience even more special for members.

Results and metrics from the programs

The loyalty programs for Laura Mercier and Bare Minerals have delivered outstanding results, with key metrics showing strong performance. Loyalty customers spend 15% more on average compared to the site-wide average, highlighting the program’s effectiveness in driving higher spending. The redemption rate has also seen a remarkable 400% increase over the previous program, indicating a big jump in customer engagement and reward usage.

The program’s success comes from its simplicity and user-friendly design. Using the LoyaltyLion template, the loyalty page is regularly updated to keep it fresh and in line with customer preferences, helping maintain interest and avoid the “set and forget” trap.

While the core metrics and KPIs are similar for both brands, the strategies are adjusted to suit each brand’s unique character. Although they share common goals like boosting revenue and enhancing the customer experience, the checkout and rewards processes are visually tailored to reflect the distinct styles of Laura Mercier and Bare Minerals, ensuring a seamless and cohesive shopping experience across both sites.

Key advice for beauty businesses wanting to up their loyalty game

When designing a loyalty program, it’s important to balance innovation with industry standards. Here are some of Christina’s key tips for creating a compelling and effective program:

• Benchmark against competitors: Check out what similar brands or retailers are doing. While your program should stand out, including familiar features like free shipping, samples, or exclusive rewards helps meet customer expectations. Don’t stray too far from these basic “table stakes.”
• Use early access to build excitement: Giving customers early access to sales or limited-edition items can make a big impact. People love getting first dibs on trending products or limited stock, making them feel valued and driving sign-ups. This works especially well for brands whose products often sell out or go viral on social media.
• Create exclusive experiences: Go beyond the usual rewards by offering special moments for your loyal customers, like letting them skip the line for popular items. This not only recognizes their loyalty but also adds urgency for others to join the program.
• Incorporate limited-time perks for extra value: Think about adding birthday gifts, anniversary discounts, or time-sensitive rewards. These surprise touches show appreciation and encourage customers to stay active in your program.

What’s in store for the future of beauty loyalty?

Here are some of the key tips that Orveon shared when it comes to the future of loyalty programs like theirs.

Customer-driven program updates

The next stage of loyalty will be shaped by what customers want. The brands are diving into data and member feedback to guide updates for their 2025 program, ensuring that changes will add even more value and relevance based on real customer needs.

Leveraging multiple feedback channels

Gathering insights from different sources is crucial. Orveon uses customer service interactions to spot common requests and preferences, while also relying on a dedicated research panel of superfans for ongoing feedback. This helps identify areas for improvement and potential new features.

Enhanced personalization and experiences

As customer tastes evolve, so will the loyalty offerings. The program will deliver more personalized rewards and experiences, informed by insights from loyal members, to deepen engagement and make the benefits even more meaningful.

Conclusion

Loyalty programs in the beauty industry have come a long way from simple points systems to complex strategies designed to boost customer engagement and drive growth. The programs at Bare Minerals and Laura Mercier, both managed by Orveon, show how creative approaches can tackle the unique challenges of the beauty market, such as increasing acquisition costs and changing consumer preferences.

As loyalty strategies continue to evolve, brands that stay ahead by embracing trends like sustainability, community involvement, and technological advancements will be in the best position to build strong, lasting connections with their customers. Whether you’re launching a new program or refining an existing one, the goal is to deliver value that truly resonates with your audience and keeps them coming back.

Want to learn more about creating a customer loyalty program that meets your needs? Reach out to our team today – we’d love to help.