Beauty companies are always looking for new ways to reward their loyal customers. In the past, beauty and cosmetics loyalty programs were limited to points-based systems. Now, beauty companies are offering more creative incentive programs that combine various rewards and rewards types. These loyalty and rewards programs can help build a strong customer base and enhance customer relationships.
Loyalty and rewards programs for beauty companies come in many forms. Some companies offer discounts on products, complimentary services, exclusive access to product launches or special events, or even cash-back offers. Other companies give out gift cards or store credit, providing customers with added value for their loyalty. Many of these programs also have tiered benefits, where customers accrue points or currency, which they can use towards higher-value items as they progress through the program tiers.
Aside from incentivizing customers directly, loyalty and rewards programs can also provide valuable data to beauty companies. Through detailed tracking of customer purchases and usage statistics, these businesses can better understand their target audience’s behaviors to improve their offerings.
This leads to better customer service experiences and better products offered by the company – resulting in increased sales over time. Ultimately, well-designed loyalty and rewards programs create a win-win situation for business owners and their most loyal customers.
This blog post shares examples from brands in the beauty and cosmetic industry who use their loyalty program to harness the power of their already existing and loyal customer base.
The brands we’ll be exploring are:
1. esmi Skin Minerals
2. REN Clean Skincare
3. 100% Pure
4. Pacifica Beauty
Why beauty brands struggle with retention
Beauty companies are facing a challenge when it comes to customer retention due to the need for personalization. Savvy consumers have become increasingly aware of what their skin-type needs and are looking for products specifically tailored to them. This means that one-size-fits-all products or services no longer cut it, as customers know they can find something better suited elsewhere. Companies must step up their game in delivering tailored solutions if they want to keep their customers around.
Furthermore, loyalty programs have failed to impact customer retention in the beauty industry. With ever-growing competition in this sector, customers expect more bang for their buck than just a few discounts here and there; they’re looking for tangible benefits and real value from brands beyond just a few points or rewards. Beauty companies must find innovative ways to engage with customers and build loyalty if they want them to stay loyal in the long run.
Social media has also become a double-edged sword for beauty companies regarding customer retention. On one hand, it provides an invaluable platform for brands to reach out directly to consumers and spread awareness of their products.
Conversely, influencers can quickly change opinions about a brand, with one post or video creating potentially devastating consequences. It’s essential that beauty companies stay abreast of the latest trends, engage proactively with influencers, and ensure that any negative feedback is addressed swiftly to maintain customer trust and loyalty over time.
Finally, there’s been an influx of new competitors into the beauty market, making customer retention even more challenging for existing brands. With so many options available, consumers are not only spoilt for choice but may be more prone to switching between brands depending on the most attractive offer at any given moment.
Beauty companies must stand out from the crowd and keep their current customers coming back for more through unique product offerings, exceptional user experiences, and unbeatable value propositions – all elements which will help foster customer loyalty over time.
How to make your loyalty & rewards program stand out
Cosmetics companies can make their loyalty and rewards programs stand out by offering early access to new products as part of their loyalty program. By doing this, customers are incentivized to join the program in anticipation of getting their hands on new items before they become widely available.
Customers will feel special and valued when they get these exclusive offers that other customers don’t have access to. This will also encourage customers to stay engaged with the brand to take advantage of the unique offers.
Another way for beauty companies to make their loyalty offering stand out is by sending birthday gifts or other special occasion gifts as incentives for signing up for the loyalty program. This gesture shows that the company cares about its customers and wants them to have a memorable experience interacting with the brand.
It encourages them to continue engaging with the brand even after joining the loyalty program, since they know they’ll be rewarded with something special on their birthday or other occasions each year.
To further set themselves apart from competitors, beauty companies should offer diverse rewards within their loyalty and rewards system. Customers should have plenty of options for redeeming points or getting discounts on purchases.
Beauty companies should consider offering double or triple points for specific purchases made by customers enrolled in the loyalty program. Offering bonus points also creates a sense of urgency among potential shoppers, who may find themselves drawn into making additional purchases so that they can accumulate more points quickly to take advantage of future rewards faster than others might be able to.
In addition, cosmetics companies should consider building a community feature within their loyalty and reward system where members can engage with each other in meaningful ways (e.g., setting challenges and sharing tips). Community involvement allows customers to connect over shared values and interests while feeling validated by knowing that there are people who appreciate what they do too.
This helps create stronger relationships between brands and consumers, increasing customer engagement and leading more shoppers to join the loyalty program to benefit from these unique experiences offered only through this platform.
Finally, beauty companies must ensure that their loyalty programs are integrated into their mobile app; otherwise, all efforts to develop the program will go down the drain due to a lack of technology connectivity between users and the brand.
Through mobile app integration, consumers can keep track of points earned/redeemed much more easily, without even having to leave the app; plus all necessary marketing strategies regarding said reward system could be implemented in no time at all through notifications sent directly through this platform.
Last but not least: convenient payment options whenever users redeem any item or discount through the app will significantly increase user satisfaction, thus making it even more desirable among those who haven’t joined yet.
Examples of 5 high-performing beauty and cosmetics loyalty programs
Not all loyalty and rewards programs are created equal. To give you some inspiration, here are five loyalty programs from beauty and cosmetics companies we think could inspire you.
1. esmi: Rewarding customer engagement
Australian brand, esmi Skin Minerals’ has grown leaps and bounds over the past few years. Today, it continues to attract high global traffic and maintains a strong customer base.
esmi worked with LoyaltyLion to build a unique loyalty program that includes:
- An integrated, on-brand loyalty program page with an explainer and dedicated URL
- Loyalty points in exchange for completing onsite activities, along with points for custom activities such as subscribing to their YouTube channel
- Program tiers to gamify the loyalty experience and entice customers to purchase often to unlock tier-specific benefits
- Loyalty emails are personalized and automated with loyalty data
- Upgraded customer service experiences using loyalty points to resolve customer issues via integration with Zendesk
In just 12 months, esmi Australia’s loyalty program delivered:
- Enrollment of 58% of their customer base
- A 2x increase in loyalty program member average spend
- Redeeming members spending on average of 3x more than non-members
- Drop-off rates for first to second purchase of 43% for loyalty program members, compared to 75% for non-members
2. REN Clean Skincare: Rewards that help the environment
REN Clean Skincare has built a strong brand identity following across both their online and offline platforms.
To enhance repeat purchases and brand engagement further, REN’s team decided it was time to kickstart customer retention with a loyalty program. REN’s team wanted to motivate their environmentally-conscious community to jump to the next tier while supporting a cause they believed in. Therefore, they enabled members to progress across three levels respectively: Ally, Advocate, and Activist.
REN also created opportunities for loyalty program members to earn points for a social media follow, by joining their mailing list, or by leaving reviews to build a more engaged online community. Having started to build an engaging community, REN’s team began offering members bonus points if they referred them to a friend to increase customer acquisition and program engagement more cost-effectively.
REN’s team saw a 68% increase in customer spend by loyalty program members. Member repeat purchase rates also grew, reaching values that were 63% higher than guest visitors. As a result, REN now generates 38% of their total revenue from their loyal customers.
3. 100% Pure: Omnichannel loyalty
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 recognizes an individual as the same person wherever they’re shopping – be that in your brick-and-mortar store or on your site. By recognizing 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 its 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 recognize their shoppers as the same person in-store and online – showing that they valued each and everyone as an individual.
4. Pacifica Beauty: Driving up AOV with in-cart rewards
Pacifica Beauty has been in the cosmetic beauty market for almost 20 years. However, they identified a need to strengthen their customer relationships in order to increase lifetime value. To build more unique, one-to-one relationships with their customers, the team wanted to create a loyalty program that truly reflected the values their business stood for, driving increased brand affection as well as higher repeat purchase rates.
Pacifica Beauty created an on-brand, tiered loyalty program structure with exclusive benefits. To make the program a natural component of their online presence, they created an integrated loyalty page that is highlighted with a heart symbol on the main navigation header.
Research shows that allowing customers to earn and redeem rewards within the checkout can increase basket size by as much as 36%. Pacifica Beauty’s team identified an opportunity to use In-Cart Rewards and points for cart component to drive up average order values. Taking away the need for customers to spend time applying voucher codes at the checkout, Pacifica Beauty made it as easy as possible for customers to view and claim rewards automatically while they were shopping.
As a result of their loyalty strategy, today Pacifica Beauty’s team is generating 35% of their revenue from their loyal customers.
5. MoxieLash: Gamified loyalty & rewards
MoxieLash created a lot of buzz when they first launched, but they soon realized that they had to continue to innovate to keep pace with competitors. They knew attracting customers was only half the battle, and they needed to retain these customers by making them loyal to MoxieLash so they become repeat purchasers.
Regular automated email communication with customers was key to the success of their loyalty program. Loyalty emails were populated with 12 loyalty data points, such as points earned, unique referral URL, and rewards available. These are sent out to customers on a regular basis and in particular with a focus on two segments: loyal customers and unengaged non-loyal customers.
In just 12 months, MoxieLash’s loyalty program delivered:
- 1.5x higher average number of orders from loyalty program members than non-members
- 1.5x higher average spend from loyalty program members than non-members
- A 3x higher repeat purchase rate from loyalty program members (first to second purchase)
How LoyaltyLion makes loyalty & rewards easy for beauty brands
1. Drive more repeat purchases
LoyaltyLion helps ecommerce brands grow by allowing them to easily create personalized loyalty programs. With LoyaltyLion, marketers can customize the program to their particular brand, including setting up rewards, defining points tiers, offering special bonuses and more. By creating a unique loyalty program that encourages repeat purchases and engagement, brands can increase customer lifetime value and drive more sales.
2. Create personalized loyalty programs
LoyaltyLion helps foster a deeper connection between customers and their brand. With its referrals feature, customers are given the opportunity to share branded content with their friends or family members who may also be interested in purchasing from the brand. By increasing the reach of the brand, it becomes easier for potential customers to find out about the company’s products and services.
Furthermore, LoyaltyLion’s gamification features incentivize customers who actively engage with the loyalty program by awarding them bonus points or exclusive rewards when they achieve certain milestones. This keeps customers motivated and engaged while also encouraging them to shop more frequently with the brand.
3. Powerful analytics
LoyaltyLion’s powerful analytics allow marketers to track customer data and identify purchase trends in order to gain valuable insights into what drives customers to purchase products from their brand.
Take the leap
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.