Looking to optimize your beauty loyalty program? We’ve got the perfect blueprint for you to follow. A typical best-in-class beauty loyalty program includes:

Let’s start with loyalty tiers. Tiers are a fundamental part of any beauty loyalty program because:

A best-in-class beauty loyalty program should have no more than three tiers, and the rewards available should become progressively more exclusive as a customer moves through the levels. For example, you may give customers in your lower tier rewards such as early access to sales, while customers in higher tiers also get early access to new products as they launch. You may also give customers in your higher tiers more VIP rewards such as invitations to exclusive events or webinars, or the ability to join a focus group.

Typical rewards that we see in loyalty program tiers include:

We recommend that you brand your loyalty tiers in a way that aligns with your loyalty program. For example, if LoyaltyLion were to launch the Pride Points loyalty program, we might have a Cub tier and a Lion tier.

Loyalty program tiers are a great way to encourage increased program engagement and participation, but they also provide a more rewarding experience for members.

Find out how to set up tiers.

Best-in-class beauty loyalty programs often include free product rewards. We recommend using free product rewards because:

The most innovative beauty loyalty programs include free product rewards that customers can redeem in exchange for their points. For example, you may offer customers with 100 points the opportunity to add a free product to their basket with their next order.

Typical free product rewards that we see in a loyalty program include:

We recommend that you use free product rewards in a way that aligns with your product strategy. For example, if you are launching a new product that you want as many of your customers as possible to try, include a sample-size version as a free product reward. If customers like the sample they will then return to but the product at full-size. You can also use free product rewards to clear excess inventory of products that didn’t sell as anticipated.

Find out how to set up free product vouchers.

Best-in-class loyalty programs incorporate opportunities to collect zero-party data that can be used to personalize customer experiences. This zero-party data collection is increasingly important as we lose the ability to collect data via cookies.

A best-in-class beauty loyalty program incorporates zero-party data collection because:

The most effective way to collect zero-party data via a loyalty program is to offer members points in exchange for sharing their information.

Typical ways that we see brands incentivize data sharing include:

We recommend being explicit and targeted about the information you are collecting to further increase trust. For example, if you want to personalize marketing materials around skin products, then launch a specific skincare quiz that helps customers to identify which skin type they have and what products would suit them. Then use that data to send relevant emails that demonstrate responsible data usage.

Personalized loyalty experiences are proven to increase program performance as customers feel recognized as individuals. However, the increased trust associated with responsible data usage is also hugely valuable in securing customer loyalty.

Find out how to set up custom activity rules such as quizzes here.

Best-in-class loyalty programs help brands to reduce their reliance on discounting. Bonus point promotions are an extremely effective way of re-engaging loyalty program members without an immediate financial incentive.

We recommend beauty brands use bonus point promotions because:

Typical ways that we see brands using bonus point promotions include:

We recommend promoting your bonus points promotions across email and SMS. We also recommend posting about them on social media so that non-members can see what they’re missing out on.

When it comes to your loyal customers, bonus point promotions can be just as effective in driving a sale as discounts. They also work more effectively in the long-term as they help members unlock rewards that they return to redeem sooner.

Find out how to set up bonus points promotions here.

Many best-in-class beauty loyalty programs incorporate custom rewards, because they enable brands to bring their values to life and demonstrate to members that they share the same values.

Custom rewards help you to emotionally connect with customers because:

The most innovative loyalty programs include custom rewards that enable members to redeem their rewards in a way that supports the causes they care about. For example, a customer who has earned 50 points could redeem a reward that enables them to plant 5 trees rather than collect a financial incentive.

Typical custom rewards that we see in loyalty program tiers include:

We recommend that you design custom rewards in a way that aligns with your brand and the products you sell. This ensures that customers see them as authentic and genuine rather than as token gestures.

Custom rewards are a fantastic way to differentiate your brand and form a longer-term connection with your loyalty program members. They also provide an innovative way of bringing your brand values to life through your loyalty program.

Find out how to set up custom rewards here.

Need a hand setting up any of these tactics within your beauty loyalty program? We’re here to help - just contact support@loyaltylion.com.