Ulta Beauty showcases CRM, e-commerce strategy at conference

Dirxion customer Ulta Beauty spoke at the annual CRM Conference in Chicago earlier last week, as reported by TotalRetail. Ulta Beauty’s SVP of Marketing Strategy Eric Messerschmidt spoke on the company’s CRM and e-commerce strategies and how they increase customer loyalty.

The presentation focused on how retail businesses can adjust their customer retention strategies in order to attain loyalty membership and revenue growth. Such skills were emphasized in an era where e-commerce sites have been taking away some of the market share of physical stores. According to the article, Ulta saw a 24 percent increase in sales, a 28 percent increase in earnings and a 27 percent growth in their loyalty program. Messerschmidt revealed that their customers buy a third of their beauty needs from the company, partly in thanks to their strong commitment to a loyalty program. He then reveals the keys to achieving a high level of CRM:

1. Align on a trusted measurement methodology for your CRM program. Customers respond to transparency. According to the 2016 Label Insight Transparency ROI Study, conducted by Label Insight, 81 percent of surveyed customers would be willing to sample more of a brand’s products if they were comfortable with its level of transparency.

2. Implement a cycle of continuous learning. “If you haven’t failed, you’re not trying hard enough,” said Messerschmidt. Ulta adopted a trial and error mentality when it comes to trying new campaigns.

3. Employ a diverse set of offers and approaches. In partner with its brands, Ulta offers a variety of deals, offers and samplings. Other premium experiences, such as early access for new products, are extended to members of their Ultimate Rewards program.

4. Build and leverage a knowledge base. Ulta is constantly conducting market research and collecting data about their customers. By being in tune with the evolving habits and methods of their customers, Ulta can better market their offers and products. Often times, this is done through target campaigns on target audiences as opposed to a control group.

5. Staff consultative “account managers.” Certain employees are responsible for managing Ulta’s relationships with their brands to get the most out of their partnership. However, special attention is given to brands that “move the needle,” according to Messerschmidt.

Partnered with Ulta Beauty, Dirxion has provided Ulta new avenues to connect with their customers with Dirxion’s e-flyers. The e-flyer gives Ulta customers a new way to browse and purchase Ulta’s products in a format that can be sent to their customers at anytime from anywhere. This format also increases the efficiency in which Ulta can interact with and extend new deals to their customers. Integrated into their Google Play and Apple iTunes store applications, Ulta’s e-flyers receive a high level of exposure to their mobile customers.