Rewards and loyalty programs are among the top marketing tactics that help attract and retain customers.
Today, most eCommerce brands offer some sort of rewards or loyalty programs. However, few are able to sustain the program.
Most rewards programs fail to engage customers beyond a certain period of time. Members start losing interest and disengaging.
Why so?
That’s because a rewards program has to be well-designed, beneficial to customers, and enticing.
One such customer loyalty program example is the Ulta Beauty Rewards program. In this blog, we breakdown its various elements to learn what makes it so successful!
What is the Ulta Beauty Rewards program?
Ulta Beauty is an American chain of cosmetics stores. The brand offers cosmetics products from multiple brands under one umbrella. The brand has physical stores, an online store and an app where customers can shop from. The Ulta Beauty Rewards program, one of the best reward program examples, offers multiple benefits to members. Its perks go beyond points and discounts. Members get to enjoy exclusive communication, gifts, and more. Being a brand that offers different cosmetics and beauty brands, its multi-brand rewards program offers a lot more than other single-brand loyalty programs.
1. Ulta Beauty prioritizes its rewards program on its website
Easy website navigation is essential for good customer experience. To make its rewards program visible, Ulta Beauty has created a dedicated page for it. Not only that, the website prominently displays and advertises the rewards program on the home page, and has a tab on the top-left corner, making it easy for visitors to navigate to the page.
How does this help?
- Makes it easy for members to participate and engage with the loyalty program
- Shows customers that the brand prioritizes the loyalty program and takes it seriously. This makes customers interested in it
Ulta Beauty Rewards program page includes the following information:
- How members can earn rewards points
- The number of points and its equivalent discount
- The three rewards program tiers and their benefits
- FAQs and terms and conditions
- More perks and benefits
2. Three types of rewards tiers
Ulta Beauty Loyalty program offers three levels or tiers to its members.
- The first tier, called Member, is free.
- The second tier, Platinum, includes members who spend more than $500 per year.
- The third tier, Diamond, includes members who spend more than $1200 per year.
By offering three levels, the brand does two things—keeps the rewards program simple for customers and adds an element of gamification. This keeps customers excited and engaged. Gamification can be a game changer in rewards programs, so it is advisable to choose a Shopify rewards program app that supports gamification features, such as Appstle Rewards and Loyalty App.
Customers in the free tier tend to buy more in order to progress to the Platinum level. Similarly, those in the Platinum level try to reach the Diamond level.
Each of these levels also offer exclusive benefits. Having multiple levels has many benefits, such as:
- Offers exclusivity to customers
- Creates a community experience for members at different levels
- Adds an element of gamification, competition, and progress
3. The rewards program offers exclusive benefits
A quick Ulta Beauty Rewards program breakdown shows how the brand creates exclusivity for loyalty program members by offering benefits and perks that are not available to non-members. This makes loyalty program members feel special and encourages them to return to the brand more often to avail exclusive benefits.
4. Multiple ways to use points
A critical factor in the success of rewards programs is how easily members can earn points. Ulta Beauty has ensured that earning points is easy and straightforward, and members can get points quickly.
Members earn points on every dollar they spend. Additionally they can earn weekly bonus points. The more points members earn, the better deals they get on future purchases. For example, when they accumulate 100 points, they get a $3 discount; for 250 points, an $8 discount; etc. This element of gamification adds excitement and instant gratification for members, making them want to earn more points.
5. Answer to frequently asked questions
Ulta Beauty customers can find the answers to all their basic queries on the Ulta Beauty Rewards program page. The FAQs section on the page is elaborate. Questions are divided in the following sections:
- Program information
- Earning points
- Managing profile
- Enrolment
- Redeeming points
- Platinum program
- Diamond program
Having answers in different sections makes it easy for customers to find information relevant to their query and gives a better understanding of the rewards program.
6. Customer support
A study by Harvard Business Review found that when loyal members come across issues on websites while shopping online, they feel more upset compared to customers who aren’t part of a rewards program. This means it is extremely critical to keep your loyalty and rewards program members happy and satisfied.
So, when Ulta Beauty’s rewards program members encounter a problem on the website, the brand ensures their issues are addressed through top-notch customer support. Here are some support features:
- A comprehensive contact us page with various types of contact options
- Help topics to browse, like Order placement, order tracking, order cancellation, etc.
- Contact details for chat, text, call and email
7. Ulta Beauty offers a co-branded credit card
Ulta Beauty offers a credit card – the Ulta Beauty Rewards Credit Card. It can be used at Ulta Beauty stores and on the website. Card holders earn one extra point for every dollar they spend. Members can check their credit card balance in their customer account. The credit card makes the rewards program more engaging for customers as they can earn and redeem more points. With the Ulta Beauty Rewards program credit card, customers get 20% off their first order.
Also read: A Complete Guide On Customer Loyalty Programs For Beauty, Cosmetics, And Skincare Brands (2024)
8. Mobile optimized website
People are now used to doing everything on their mobile devices, including shopping and managing their reward points. Ulta Beauty addresses this with a highly-optimized mobile site. Apart from a mobile-optimized website, the brand also has an app through which customers can perform any action they want to.
All the features available on the web version are available on mobile as well. What is more, Ulta Beauty Rewards program follows great practices for its mobile version, making it easy for customers to shop and engage with the rewards program on the go.
9. Multiple reasons to join the rewards program
Ulta Beauty offers multiple reasons for customers to join their rewards program. The brand offers perks that go beyond monetary benefits. Here are some of the reasons why the Ulta Beauty loyalty program is one of the best loyalty program examples.
- It’s free to join
- Members earn one point for every dollar spent
- Members can redeem points on any product or service in-store, in the app or on the website
- Member-exclusive offers and communication
- Double points during members’ birthday month
- Diamond and Platinum members get exclusive birthday gifts
- Members can combine points with other discounts and special offers
10. Rewards program terms and conditions
Ulta Beauty Rewards program page has a section dedicated to terms and conditions. This feature shares more information with customers, making them more confident about the loyalty program they’re getting into.
For instance, the terms and conditions section shares detailed information on aspects of membership, such as the joining fee, eligibility, information about privacy, etc. There are different subsections for the membership levels explaining how customers can join them and what the respective benefits are.
Other information in this section:
- Cancellation
- Account maintenance
- Earning points
- Gift cards
- Birthday gift
- Exclusions
- Returns
- Bonus points
- Redeeming points
Key takeaways from the Ulta Beauty Rewards program
- Having a well-designed rewards program is the first and foremost requirement if you want a successful loyalty program that helps generate engagement and profits. Ulta Beauty has not only ensured it’s one of the best loyalty program examples, but the brand makes sure its program is promoted for maximum awareness and engagement.
- Ulta Beauty creates deeper engagement with members through non-transactional elements. For instance, the brand sends exclusive communication and content to its members, first access to special discounts and deals, etc.
- The brand shares all details with customers, leaving no room for doubt or ambiguity. This builds stronger trust and confidence in the rewards program and customers engage with the program knowing all the details.
- Ulta Beauty Rewards program offers the best digital experience on the website, on mobile devices, and on its app. The key to running a successful rewards and loyalty program is using an efficient Shopify loyalty program app.
Apply these lessons to your Shopify rewards program
With competition in the rewards and loyalty market increasing, it’s hard to keep your customers engaged for a long time. However, if done well, you can make your rewards program a game changer for your brand, just as we see in the above rewards program example.
One of the most critical factors to run a successful rewards program is your Shopify rewards program app. If you’re looking for one, you’re in luck with Appstle Rewards and Loyalty App.
Here are some reasons why Shopify and Shopify Plus merchants rate it the highest amongst loyalty apps:
- Innovative and engaging loyalty and rewards programs
- Multiple types of rewards plans
- Gamification of rewards awarding and redeeming
- In-depth performance analytics and data reports
- Excellent 24x7x365 support for merchants
- Easy integration across platforms
- Customization capabilities
- Seamless third-party app connections
Install Appstle Loyalty And Rewards App on your Shopify store today!
