We admit it. We’re also obsessed with the Victoria Beckham Netflix docuseries.

It makes clear that the success of her fashion and beauty empires today isn’t simply due to her music career or relationship.

In fact, as the platform behind the V-Suite loyalty program at Victoria Beckham Beauty, we at LoyaltyLion can confirm that there is no secret sauce.  

With Victoria Beckham Beauty making almost £2 million in its first 3 months, the seriously strategic business has been credited with lifting VB’s commercial fortunes back into the black.

So, why is Victoria Beckham’s beauty business so successful?

For starters, because it fosters genuine customer loyalty – the kind that drives growth.

Compared to guest customers, loyal members spend much more, more often.

Like other fast-growing brands with a high GMV (gross merchandise volume) on Shopify, Victoria Beckham Beauty has an ambitious retention strategy – and the high-quality tech stack to realize it.

Customer retention is vital in the beauty market. With so many luxury beauty brands out there, and shoppers suffering from decision paralysis, the best loyalty case studies all share one trait: retention is based on more than reputation and quality products alone.

The classy V-Suite program makes a shopper’s decision to purchase from Victoria Beckham Beauty far easier – despite the discounts or flashy promos other brands may offer.

It works so well that over 300k people have enrolled in the loyalty program since it started just over two years ago, and top members shop over six times more often.

Here’s why Victoria Beckham Beauty’s loyalty program works so well

Powered by LoyaltyLion’s platform, and run day-to-day by Victoria Beckham Beauty’s Seth Edmonds and Valentina Zambrano, The V-Suite program is laser-focused on increasing customer lifetime value (CLV).

It motivates loyal customers to climb the program’s three tiers by shopping more frequently with the brand and spending more each time.

In each tier, there are exciting perks that help loyal members feel closer to the brand (and, by extension, its founder):

• In Tier 1, all enrolled members receive early access to product launches and sales, as well as access to deluxe samples.

• Those who spend between $250 and $750 per year access Tier 2, unlocking access to The V-Suite Event (which features members-only pricing) and the Vault beauty archive, plus complimentary shipping on orders over $200.

• Finally, those spending over $750 receive all of the above including complimentary shipping on all orders, plus an exclusive annual gift, priority customer service, and enhanced returns.

The strength of the value exchange is undeniable: these are benefits customers tell the brand they want, and they can’t be unlocked any other way than through loyalty. In fact, two coveted products recently sold out in record time thanks to members snapping them up first.

The results are evidence of the smartest ecommerce strategy:

• Members of the top tier purchase over six times more frequently than those in the bottom tier, and three times more than those in the second tier

• Average order value is 44% higher for top-tier members than bottom-tier, and 30% higher than second-tier

• As a result, the customer lifetime value of top-tier members is more than double that of members in Tier 2, and over four times higher than Tier 1. 

What’s the secret to Victoria Beckham Beauty’s high customer lifetime values?

The world of ecommerce is rapidly changing. Today, consumers expect a stronger value exchange than ever in return for their loyalty and personal details.

In fact, while 85% of people say that discounts would encourage them to join a loyalty program, the same proportion say free or discounted shipping would do that. Plus, almost three-quarters (72%) of people are motivated by early access to sales. 

Victoria Beckham Beauty delivers all of those – but only in exchange for regular repeat purchases.

That’s why it’s so smart, and reflective of the savvy businesswoman Posh Spice really is.

The brand can justify offering all these incentives at once because the customer lifetime value of members, especially those in the higher tiers, produces a strong ROI and revenue growth.

A masterclass in what customers want

In doing so, Victoria Beckham Beauty not only grows its revenue but also strides ahead of the competition: the stickier its loyal customers, the more competitors pay in ad costs and discount promos to try to steal them away.

As Hannah Parker, our customer success manager for Victoria Beckham Beauty, states, “The V-Suite program is a masterclass in truly listening to what customers want, while keeping it classy, elegant and true to the VB style.” 

Want to see how other beauty loyalty programs like Sephora lock in customer loyalty and drive amazing revenue growth? Check out more case study and program examples here.

Or quickly calculate how much more revenue you can generate by retaining and rewarding loyal customers, based on data from 10,000 brands, using our new benchmarking tool.