Ulta Beauty’s Loyalty-Leaning In-Store Sampling
Published 08 November 2023
Seeking to maximise the US beauty and personal care market – set to grow 2.43% annually to reach $110.28bn in 2028 (Statista, 2023) – American multi-brand beauty retailer Ulta has launched a store-based sampling pilot to drive loyalty, product discovery and data insights. The scheme uses digital vending machines from Boston-headquartered health and wellness specialist SOS and runs until February 2024.
The wall-mounted touchscreens/product dispensers are in 10 stores across New York, Massachusetts, Florida, Texas and California. The retailer’s Ultamate Rewards members (currently 41 million) can use these to claim one free travel-sized beauty, skin- or haircare sample a week simply by signing into their account on-screen with their phone number or email. Brands involved so far include Hero Cosmetics and Luxury Brand Partners with products such as R+Co haircare and One/Size cosmetics.
The strategy aligns with Ulta’s position as the top beauty destination among Gen Zers and millennials. Product sampling is particularly effective among American Gen Zers, with 60% citing it as one of their top three motivations to buy (Advantage Solutions, 2022). It appeals to women more than men (64% versus 52%), with teens (74%) more likely than young adults (59%) to be responsive.
As well as rewarding members (and encouraging footfall), the initiative incentivises new customers, who can sign up and receive samples on the spot. The pilot also provides data and insights into consumer preferences for particular brands and product categories – not always available when giving out offline freebies (often chosen at random, or according to what’s available). Additionally, the screens facilitate Ulta’s first-ever digital in-store advertising programme, doubling as marketing platforms for Ulta’s partner brands. The machines also provide complimentary Rael (US) period care products.