How Beauty Brands are Retaining Customers through Beauty Rewards Programs
- Posted on March 25, 2022 by Robert
- Reading time about 6 minutes
The beauty industry is growing at a rapid pace, especially post pandemic. The industry valued at $483B in 2020 and have grown to $511B in 2021. The compound annual growth rate is 4.75% worldwide and is expected to surpass $716B by 2025. Though a few new brands have been emerging as customer’s choice amidst the pandemic due to the shifting priorities of the audience.
The reason why the beauty industry is topping the race is the onset of beauty rewards program which facilitate in capturing customer’s attention. They have also been the major reason behind the rapid growth of these brands, ultimately proving customer retention as the key to stay an edge above the competitors around. Having a customer loyalty program is quite necessary to not just market the brand but, also stay in the competition as much as possible.
Major Challenges Faced by the Beauty Industry
Every industry was running at its pace but the pandemic has given rise to increased demands and expectations which in turn have been upgrading user experiences. Today, customers are exploring digital platforms and expecting an excellent user experience. Here are a few challenges faced by the beauty industry-
- Differentiation in the Marketplace
Customer priorities are changing everyday and every brand needs to level up and stay up to their customer’s expectations. The major aspect here is to understand the target audience while staying true to the brand’s value. The secret behind the leading brand’s success is having a smart understanding of the target audience and optimizing exactly what matters to the customers.
- Better Value
Today no one is interested in purchasing from a brand who do not offer the right reviews. The celebrity endorsements which were once a decisive factor in selecting any makeup brand are no more the right thing to have a thought! Customers are willing to see good reviews and real people reviewing the same. A leading brand Sephora is preferred by most of the people as it shows the reviews of beauty influencers and run campaigns showing reviews of real people.
- Personalized Experience
Personalization is now the most imperative factor today. Every customer expect to have a personalized experience with a brand. As most of the customers spend most of their time on social media, it has elevated the expectations of customers in the regular life and brands are now deemed to cater customer requirements with a personalized approach.
Addressing Challenges through a Loyalty Program
Tons of aspects constitutes in building the right customer retention strategy. The regular challenges faced by the beauty industry has just one answer to sort it all- Loyalty Programs! In order to deliver a complete 360 degree experience to the customers, it is extremely imperative to stay connected with the customers, have regular communications and make sure your customers are happy with the brand. Taking an example of the leading beauty loyalty programs, customers are happier and making frequent purchases with the brand as well. Loyalty programs are surely a bliss for every industry, especially the beauty and cosmetics industry.
Best Loyalty Rewards Program Features to Consider
Now once we’ve clarified the challenges and the capability of integrating loyalty programs, it’s time to think about the major features to consider-
- Different types of Loyalty Programs
There can be a variety of loyalty programs to fit in, altered according to the brand’s requirements and long-term goals. The most common type is earn-and-burn rewards or point-based rewards. It’s easy to implement, track and manage throughout! Tiered loyalty programs are another type wherein there are different tiers of programs where customers are upgraded to upper tiers on achieving preset milestones. A brand can choose the right type of loyalty program to suit their requirement.
- Early Product Access
As a brand, you can make your customers feel privileged of being in your loyalty circle. Providing customers with early product access or VIP access is an excellent strategy. You can surely have this feature included in your loyalty program and make your customers feel valued for being associated with you.
- Perks on Special Occasions
Sending customers a reward on their special occasions like birthdays & anniversaries makes it a great deal to engage and retain customers. They feel valued when receiving rewards and bonuses and it increases the chances of positive word of mouth marketing.
Successful Loyalty Programs Leading the Industry
While you’re just in thoughts, many beauty giants have already implemented the loyalty strategies and have been leading the race. Here are a few leading names in the market-
- Charlotte Tilbury
Charlotte Tilbury is a high-end makeup brand headquartered in United Kingdom. Being one of the world’s rapid-growing beauty brands, its revenue is ranked at the top among the top 10 in the competition. They have numerous benefits for the customers which starts from offering 10% off on the first order and huge perks on further shopping.
- MAC Lover Loyalty
MAC launched their loyalty program which is divided in different tiers. The process starts with more money spend, better the benefits received. It provides the customers with 15% off on the first ever order and gives loyalty bonuses to the customers on signing up as well. Having a huge customer base, MAC is amongst the leading beauty giants.
- Sol Rewards by Sol De Janiero
Sol De Janiero is a reputed brand for aromatic shower products and have been gaining popularity in the recent years. According to the brand, it is selling a tub of crème every 28 seconds and having over 5000 5-Star reviews with over 340000 loves on the site as well.
- The Balm’s
The Balm Cosmetics is a top, bestselling range of makeup, skincare, hair care and nail polish items. People are drooling over their products all over the social media channels. Being featured in Allur, The Mancunion and various other leading media outlets. They have a huge customer base of 2.4 million beauty lovers on Instagram and surely the popularity speaks for itself.
- Sally Beauty Rewards
Sally Beauty Rewards offers two different types of membership options including Preferred and Elite. Each program has a different reward structure to offer. It activates on a minimum order spent annually and provides customers with reward certificate and free deliveries for the entire year.
So, now you have a list of best beauty loyalty programs and what exactly will benefit you on having a personalized loyalty program for your beauty brand! There’s no time to lose, find the right solution and get going with your beauty rewards program.