Beauty Store Business

JAN 2019

Beauty Store Business provides solutions for better retailing! New products, industry news, savvy business moves and important trends affecting both brick-and-mortar and online retailers are included in each issue.

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30 January 2019 | beautystorebusiness.com spending, with 100 points equal to $3 off a purchase. The program also features two tiers for big spenders: Platinum, for those who spend $450 or more annually, and Diamond, for those who drop $1,200 a year. There's even an Ulta Beauty credit card–which incentivizes shoppers with two points per every dollar spent. The loyalty program is a win-win; customers rake in discounts and Ulta Beauty collects crucial data. "The opportunity it provides us is that we can personalize communication to our guests. We can sample based on their preferences and their past purchases, and we can give them exciting newness or hero items," Ovington says. This approach is vastly more effective than offering a simple coupon. For example, Ulta recently did a "smart sampling" of Pureology products specifically for those who had purchased from that brand in the past. True to its data-driven approach, the retailer monitored repurchase rates. Coy adds that guests who shop in-store or online can also choose samples at checkout. "Our brands love to sample to our guests. They're very generous when it comes to doing so," she says. These personalized gifts strengthen the emotional connection members have with the Ulta Beauty brand. Multiple unique sales events throughout the year provide another way for Ulta to serve all of their beauty enthusiasts and to stay competitive. The events are well thought-out and timed to boost sales during slower periods. Examples include the 21 Days of Beauty, three weeks in September when shoppers receive new discounts on various items each day, as well as the Spring Haul, Fall Haul, Cut for a Cause, the Gorgeous Hair Event and the Love Your Skin Event–and Diamond and Platinum Appreciation Days for loyalty members. "These value events really encourage shoppers to try new brands, products or services," Ovington says. WHAT'S ON THE MENU? Ulta Beauty diffentiates itself by infusing each location with the vibrant energy and activity of its in-store beauty services, including The Salon at Ulta Beauty, the Dermalogica Skin Bar, the Benefit Brow Bar and MAC Cosmetics makeup applica- tions and lessons. Guests can experience an array of services varying from 10 to 90 minutes in length at a wide range of price points–covering all their haircare, skincare, brow, makeup and face- waxing needs. Nick Stenson, vice president of salon services and trend, has spent his career building a clientele at salons. He owned Caviar Salon in Chicago, served as an artistic director for JCPenney Salons "We look to have a continuum of products that appeal and are inclusive across all ages, all ethnicities and gender in all its forms." —Penny Coy, VP of merchandising, prestige skincare and fragrance Courtesy of Ulta Beauty Professional products are placed near The Salon to encourage sales. Ulta Beauty employs more than 8,000 stylists in The Salon across all of its stores.

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