Ulta Beauty, a powerhouse in the beauty industry, has long been recognised for its expansive product offerings and customer-centric approach. Positioned alongside industry giants like Sephora, Ulta has carved out a significant niche by blending a wide assortment of beauty products with an inclusive shopping experience. This strategy has made them a go-to destination for beauty enthusiasts of all kinds.
Behind the successful brand is Dave Kimbell, who took over as CEO in 2021, succeeding Mary Dillon. Kimbell has continued to build on the strong foundation laid by his predecessors, focusing on the integration of digital and physical retail to create a seamless omni-channel experience for customers. His leadership is marked by strategic priorities that include expanding Ulta’s digital capabilities, enhancing customer engagement, and driving sustainability initiatives.
Under Kimbell’s guidance, Ulta has embraced new technologies like augmented reality (AR) and artificial intelligence (AI) to personalise the shopping experience and optimise inventory management. The Ulta app accounted for 57% of e-commerce sales in the quarter, Kimbell said.
“Beauty tech is a space that is moving really fast, Ulta Beauty has a specific fund for investments in small companies that “we think are creating the future of the beauty category, and we’re excited about the possibilities of what that could bring.”
Whether you’re a beauty brand looking to replicate its success or a marketer seeking actionable insights, this in-depth analysis by House of Marketers will provide the clarity you need to understand Ulta Beauty’s success.
In this article, we’ll dissect Ulta Beauty’s brand media approach, revealing the tactics and strategies that have helped them take their business to new heights.
Historically, Ulta marketed its products through a combination of in-store promotions, traditional advertising, and a strong loyalty program. However, the launch of their mobile app marked a significant shift in their marketing strategy, signalling their adaptation to the digital age and a deeper focus on personalised customer experiences.
The Launch of Ulta Beauty’s Mobile App
Recognising the growing importance of mobile technology, Ulta Beauty made a strategic decision to invest heavily in their digital infrastructure. This led to the launch of their mobile app, a pivotal move in their journey toward digital transformation. The app was designed to provide customers with a seamless, personalised shopping experience that could be accessed anywhere, anytime.
Launched to cater to an increasingly digital-savvy customer base, Ulta’s mobile app was more than just an online store; it became an essential tool in the brand’s marketing arsenal. The app included a variety of features aimed at enhancing the shopping experience and increasing customer engagement.
Key Features of Ulta App’s Success
GlamLab
One of the standout features was the virtual try-on tool, which allowed customers to see how different products would look on them without needing to visit a physical store. This feature not only bridged the gap between online and offline shopping but also significantly reduced the hesitation customers might feel when purchasing beauty products online. The success of Glamlab has been widely recognised, with many users appreciating the ability to try before they buy, which has also contributed to increased sales and customer satisfaction.
Source: digital Innovation medium
Using AI for Ultamate Rewards program
Ulta’s app was not just about convenience; it was a carefully crafted platform that leveraged advanced technologies to deliver a superior shopping experience. The use of data analytics and artificial intelligence (AI) played a crucial role in this transformation. Ulta tapped into the vast amount of data generated by their Ultamate Rewards program, using AI to personalise marketing efforts. This personalisation meant that customers received promotions and product recommendations tailored specifically to their preferences, driving both customer satisfaction and brand loyalty.
An example of this technique in play would be of Ulta’s marketing email that had 21 ad tiles in it. The content of the ad tiles was personalised based on the preferences and behaviour of the recipient, so the marketing material they got in their inbox actually felt relevant to their tastes.
These digital innovations not only enhanced the customer experience but also increased engagement with the brand, ultimately leading to higher sales and a more loyal customer base.
In-App Promotions: Maximising Sales Through Offers and Deals
Ulta Beauty’s mobile app is not just a tool for shopping; it’s also a hub for exclusive promotions and rewards that keep customers engaged and incentivised to make purchases. Ulta has cleverly integrated their loyalty program, Ultamate Rewards, into the app, offering users a range of promotions that enhance the value of their shopping experience
21 Days of Beauty Promotions
Ulta Beauty also capitalises on significant events throughout the year by offering in-app promotions tied to special occasions. For example, during their annual 21 Days of Beauty event, app users receive exclusive access to deals and early notifications about upcoming sales. These time-limited promotions create a sense of urgency, prompting users to make purchases to take advantage of significant discounts on popular products.
View this post on Instagram
In-App-Exclusive Offers
These promotions are only available to users who shop through the app, providing a strong incentive to download and engage with the platform. Such offers might include early access to new product launches, exclusive discounts or bonus points on purchases. This strategy not only boosts app downloads but also enhances customer loyalty by making users feel like they’re part of an exclusive community.
View this post on Instagram
Member-Exclusive Deals
Ulta’s app also serves as a platform for delivering member-exclusive deals. About 95 percent of Ulta Beauty sales are made by loyalty program members. The program’s member base has grown from 32 million active users in 2018 to 42.2 million at the end of 2023.
Ultamate Rewards members who shop through the app often receive personalised offers based on their shopping history and preferences. By using these offers, Ulta ensures that the promotions are relevant to each user, increasing the likelihood of a purchase.
View this post on Instagram
Ulta Beauty takes a thoughtful approach to engaging with their loyal customers by collecting important personal details, such as birthdays. When a customer’s special day arrives, Ulta sends a personalised birthday message, such as “Have a Fabulous Birthday!”, along with a special offer to make their day even more memorable.
For example, during the customer’s birthday month, Ulta might offer them double the rewards points on any purchases made throughout the month. This gesture not only enhances the customer experience but also fosters a deeper connection between the brand and its loyal customers, encouraging continued engagement and loyalty.
Partnering with Brands for Exclusive Experiences
Ulta has collaborated with popular brands like Olaplex, and Tarte to offer users the opportunity to book appointments with brand experts or stylists directly through the app. These appointments allow customers to receive personalised beauty advice, try out new products, and even get custom makeovers, all of which can be booked seamlessly within the app.
This feature not only enhances the customer experience but also drives foot traffic to Ulta’s physical stores, where these appointments typically take place. By integrating these services into the app, Ulta creates a more connected and holistic shopping journey that blends online convenience with in-person expertise.
View this post on Instagram
@_cicimichele As a makeup lover, it can be hard to pass the torch and let someone else do your makeup. But I knew I could trust the salon at Ulta Beauty to provide professional and quality services🩷 this is your sign to schedule your next make up appointment with the salon at @Ulta Beauty #thesalonatultabeauty #ultabeauty #ubcollective #ad #makeupappointment
HOM Insights
Ulta Beauty’s success is rooted in several key strategies:
- Understanding the Target Audience: Ulta’s extensive market research and the Ultamate Rewards program allow for precise targeting, offering personalised promotions that resonate with a diverse customer base.
- Personalised Shopping Experience: Ulta enhances both in-store and online shopping through expert advice and innovative tools like Glamlab, providing a seamless and engaging experience.
- Adoption of Technology in Operations: Ulta’s investment in e-commerce and mobile technology, such as the user-friendly mobile app, drives convenience and customer satisfaction. Using AI and the Ultamate Rewards data, Ulta delivers highly personalised marketing and product recommendations, strengthening customer loyalty.
- Digital Marketing Strategies: Ulta’s robust digital presence, through social media, influencer partnerships, and targeted online advertising, effectively builds brand awareness and engages customers.
Conclusion
Ulta Beauty’s unique mobile app strategy stands as a testament to how digital transformation can elevate a brand within a competitive industry. By seamlessly integrating advanced technology, personalised features, and strategic partnerships, Ulta has created an app that not only enhances the shopping experience but also drives customer loyalty and brand engagement.
As Ulta continues to innovate and expand its digital capabilities, its mobile app will likely remain a cornerstone of its efforts to maintain leadership in the beauty industry. Through continuous improvements and strategic partnerships, Ulta Beauty’s app is poised to keep delivering a superior, personalised shopping experience that resonates with today’s tech-savvy consumers.
Whether you want to launch a new mobile app, leverage influencer partnerships, or create compelling ad campaigns, our team is here to guide you every step of the way.
Let’s work together to bring your brand to the forefront of your industry just like Ulta Beauty.
We specialise in helping brands achieve this kind of success using social media, Influencer marketing, and UGC marketing. If you’re looking to elevate your brand and connect with a wider audience through effective social media strategies, we invite you to Contact us for a free consultation and proposal.
House of Marketers (HOM) is a leading TikTok Marketing Agency. Our global agency was built by early TikTok Employees & TikTok Partners, which gives us the insider knowledge to help leading brands, like Redbull, Playtika, Badoo, and HelloFresh win on TikTok. Want us to convert more of Gen Z and Millennials with TikTok? Get in touch with our friendly team, here.