Written by: Mrudul

How to Build Customer Loyalty for the Beauty Industry

The beauty industry is worth $532 billion, and it is an industry that will be evergreen no matter how poorly the economy swings. In fact, Juliet Shor, a professor in her book 'The overspent American,' writes that even when times are tight, consumers will indulge in luxuries like cosmetics as it gives them an emotional

The beauty industry is worth $532 billion, and it is an industry that will be evergreen no matter how poorly the economy swings. In fact, Juliet Shor, a professor in her book ‘The overspent American’>, writes that even when times are tight, consumers will indulge in luxuries like cosmetics as it gives them an emotional lift. She called this ‘The lipstick effect.’

In the beauty industry, customers are more likely to be loyal as the effect of one product on their bodies might be completely different from another. Customers will stick to a product that works for them and might be averse to trying something new as they are not sure about experimenting on their skin. But you can always make them change sides and stay with you if you have a solid customer loyalty program working wonders for you.

But there are still problems with brands struggling to increase loyalty because there is no direct relationship with the customer as the purchase channels are not always the same. This is where the online space comes in where you can study the behavior of your customers, push content that is relevant to them, and use customer loyalty program like that of 99minds to bring in more loyalty.

Here is how you can build loyalty in the beauty industry:

1. Offer sample products:

Nothing works like giving free samples of your product, especially in the beauty industry. It is the type of product that customers would want to feel, smell, and see before taking the plunge.

Here is what you can do for every order that you get:

  • Offer a small sample of your product
  • Suggest products that you think might be useful for them and offer them at a discounted rate
  • Invite them to try it out at your physical outlet for free

You can also use this technique to get feedback about your new products. It is a win-win for everybody. Getting feedback from your customers is extremely important as they are the ones who are using your product and would be able to tell clearly how the product can be improved.

If giving samples to each of your customers might not be a viable option, then only send it to customers who have become ‘Exclusive; or ‘VIP’ customers. They could be the ones who religiously complete your surveys, engage with you on your social media platforms, etc. When you offer rewards like this, it will create a sense of excitement in their minds when it comes to your brand. The phenomenon of free samples play on the rule of reciprocity, and you can learn more about why it is effective here.

2. Exclusive VIP club:

Some of the beauty brands are aspirational brands and are not necessarily something that the masses will take a liking to, because of the price. Businesses should understand this and design programs that will help customers become ‘special’ customers based on their shopping patterns and cart size.

For example, the Beauty Squad appeals to the status of its customers by having different tiers of offerings for its customers. The reward programs are named Glow Getter, Rising Star, and A-lister. Programs like this could include gifts like initial rewards for becoming a member, free samples, gifts on important days, exclusive access to the office, and more. All of this is made possible if you have a customer loyalty program in place.

3. Personalization is the word:

In business, personalization is a big word as everyone wants to feel special and would like to believe that the product was built exclusively for them. It is the exact reason why Sephora.com sells more than 200+ kinds of foundation. In Sailthru’s ‘Annual Retail Personalization Index,’ Sephora was ranked number 1 and rightly so. When Rihanna launched Fenty Beauty, her makeup line, it had 40 different shades of foundation available for the consumer. L’Oreal has 30+ shades. Did you know that Estee Lauder uses facial recognition to analyze people’s skin to match them with the right products?

Consumers love personalized products, and you would be doing your business great favor if you were to cater to the different tastes of your customers by creating beauty products that way. Having a customer rewards program software helps you collect valuable information about your customers, which you can use when personalizing your products.

4. User Generated Content:

It is the best way for more social media mentions, traffic, and more importantly, it drives loyalty like no other. If your customers love your brand, not only would they be interested in liking and commenting on your posts on social media, but they will also be happy to share their pictures with your product. Having such loyal customers takes much effort, but it is certainly possible.

UGC is pivotal for your brand’s growth because people trust recommendations from people who are like them. They would be more convinced to buy a product if it were to be recommended by a customer like you rather than from the marketing manager of a brand, right?

Reward your customers for sharing their experiences with your brand on social media. They act as a massive validation for a brand as potential customers want to see if your product works or is it just good marketing from your side that makes your brand look appealing. 79% of customers say that UGC their purchasing decisions.

5. Create a community:

Nothing drives loyalty like having a community of users of your brand at the same place. The beauty industry is driven by fellow customers who share tips and recommend products. You can use a customer rewards program software to bring them into your fold. Having a community of users around means that much information would be exchanged, which you can also use for your social media handles. Leverage the community to provide more value to your customers.

They could be given access to a beauty consultant for free, and the interaction can be shared as a video for the benefit of others who are a part of the exclusive community. With a community of users available for you, it is all about stretching your imagination to give them more reasons to stay with you as a loyal customer.

Conclusion:

With the beauty industry about to reach greater heights, it would be impossible for you to scale exponentially without the use of technology. Running a loyalty program is not a difficult thing to do anymore, with 99minds, we have the entire process running on auto-pilot as businesses can create one with complete ease. According to Visa’s Loyalty Report Study, 81% of customers say that loyalty programs encourage them to keep buying from the same brand. If you were always looking to get the help of a customer rewards program software, then there is not a better tool out there in the market.