My panel talk with Loyalty Lion
I recently spoke at Loyalty Lion's keynote session on day 1 of Loyalty Connect: Autumn Edition talking all things retention and loyalty. The session focussed on how some of the big players are getting it right. Here are some of the highlights...
Q1: What sets Sephora apart in customer retention?
A: Sephora excels in three key areas - personalisation, customer engagement, and loyalty with its renowned Beauty Insider program. They collect first-party data to offer tailored recommendations based on customer profiles, enhancing personalisation from sign-up. Experiential retail, such as in-store beauty classes and consultations, drives conversions and repeat visits. The tiered Beauty Insider program, with perks like birthday gifts, exclusive discounts, and early access to products, incentivises spending and loyalty. Sephora also fosters community through a members-only forum and special events, with the loyalty program driving 80% of its sales.
Q2: What are Ulta Beauty doing well in comparison?
A: Ulta Beauty stands out with a broad product range that integrates both mass and prestige beauty, appealing to a wider demographic. With a larger store footprint and a broader array of in-store services, Ulta uses frequent promotions as a conversion driver. Its Ultamate Rewards Program offers points on all purchases, including salon services, providing greater flexibility than Sephora. Ulta also excels in offering higher points multipliers during double or triple points events, giving members more opportunities to earn and redeem rewards quickly.
Q3: Other brands doing well in customer loyalty?
A: Tallow & Ash is a disruptor in the laundry space, led by founder Ciara, whose front-and-center presence humanizes the brand and builds customer advocacy. They focus on high-quality, sustainable products, sharing eco-friendly initiatives and behind-the-scenes content. Personalized emails from the founder strengthen customer relationships, while encouraging customer input through social media and feedback loops promotes transparency. Tallow & Ash leverages customer testimonials for business growth and rewards engagement through their Laundrylab points system, offering perks from product samples to free laundry for life, fostering loyalty and deeper connections.
Q4: What next for customer-centric eCom?
A: Brands are increasingly embracing hyper-personalisation, driven by AI and data insights, to tailor experiences for customers. Retention strategies now focus heavily on corporate social responsibility (CSR), aligning with customer values such as sustainability and ethical practices. Community-driven loyalty programs, offering exclusive and value-based experiences, are gaining traction, with brands like Patagonia leading the way by fostering deeper connections and loyalty through shared values.
I specialise in helping brands leverage their existing customers, to create better shopping experiences through identifying opportunities for growth and profitability across your eCommerce ecosystem.
Together, we’ll optimise your approach, build a loyal customer base, and ultimately drive more revenue.
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