Ulta Beauty Tests Gamified Loyalty Program

- The pilot program is named GlamXplorer and was developed in a strategic partnership with the gamified loyalty company Hang. Ulta's innovation fund, Prisma Ventures, has also made an undisclosed investment in Hang. - The initial soft launch of GlamXplorer was tested with a select group of 1,000 of Ulta Beauty's top-spending rewards members. Early results from the pilot showed high engagement, with 86% of participants returning the following week and users playing games an average of six times per week. - The experience features 42 mini-games, such as "Word of the Day" and "21 Questions," alongside 30 quests that integrate with existing digital tools like the GLAMlab virtual try-on feature. Rewards are personalized and include discounts, gift cards, and free products. - This new gamified layer is designed to supplement, not replace, the existing Ulta Beauty Rewards program, which was rebranded from Ultamate Rewards in January 2024. - The core loyalty program is a massive driver of the business, with over 44 million active members, an 8% year-over-year growth in membership, and accounting for more than 95% of the company's total sales. - Ulta's loyalty strategy centers on a direct points-for-discounts model, which encourages members to accumulate points for larger savings. This contrasts with key competitor Sephora's Beauty Insider program, which has historically focused on redeeming points for deluxe product samples and exclusive experiences. - The initiative fits into Ulta's broader strategy of leveraging first-party data and AI for personalization, which the company credits with achieving a 95% customer repurchase rate. - Omnichannel loyalty members are particularly valuable to Ulta, spending nearly three times as much as customers who only shop in-store.