January 22, 2021

Ulta Beauty Leverages Data-rich Loyalty Program

Ulta Beauty’s loyalty program is giving the retailer key insights, including data that helps with sampling programs.
Ulta’s Eric Messerschmidt, senior vice president of marketing strategy, loyalty and CRM at the retailer, spoke at Oppenheimer’s 17th Annual Consumer Conference on Tuesday. He detailed one of Ulta’s sampling programs, unleashed after Urban Decay released its Vice lipstick collection.
“They had 150,000 really nice sample packages that they want[ed] to mail out to our customers,” Messerschmidt said. “We worked with Urban Decay. We have 24 million customers, who to send these to? Oh my gosh. We leveraged our data to figure it out.”
Ulta sorted through the data to find which customers liked Urban Decay, which liked lip products and which ones liked lip but didn’t buy Urban Decay, according to Messerschmidt. “We targeted segments of those customers with those 150,000 samples and mailed out to exact specific people we wanted to mail to. We measured them over three, six, nine months to see did they come back and buy — 41 percent lift from that type of program. So we do that all the time.”
Ulta’s loyalty program has more than 24.5 million active members, and is growing at a rate that outpaces the company’s

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