How Ulta Beauty is using AI and innovation to drive loyalty

AI may be one of the year’s top buzzwords, but in the beauty industry, it’s a necessity. Ulta Beauty, the 1,355-unit cosmetics chain, has been dabbling in such digital experimentation for a while as it seeks to connect with customers and offer the best recommendations for products. Innovation is a chief priority for Michelle Crossan-Matos, a former Samsung executive who joined Ulta earlier this year as chief marketing officer. “I always have an innovation section and the innovation section is, what are we doing that’s different and how are we going to make our consumers’ lives better as a result of that innovation?” said Crossan-Matos, speaking at Ad Age’s Media Summit in New York last week. She added that, “Everyone’s like ‘Oh, I’m so AI-ed out,’ but the reality is, AI is really important in beauty care.” She said that Ulta has had over 11.5 million customers engage with virtual try-ons, which are driven by AI, to test products like lipstick shades or foundation colors. Ulta has had its own GlamLab virtual try-on tool for several years. Now, the retailer is exploring generative AI. Check out the latest Ad Age events and award programs “I’m not using gen AI to create new campaigns, but I’m using it to inspire me to think differently,” said Crossan-Matos. She highlighted other channels Ulta is also leaning into—owned channels such as SMS and email, which also have high ROI, she said. More news: Meta’s AI chatbots—what marketers should know Much of what is informing Crossan-Matos’ decisions is Ulta’s robust loyalty program. The company’s program has 42 million members, she said, noting that it is one of the largest in the country. “I personally don’t move an inch if I don’t know how my members feel about campaigns, how they feel about the creative,” she said. “Sure, everyone has an opinion, is it good or bad, what can we improve, but I really don’t care about Michelle’s viewpoint right now, I care about my guest’s viewpoint.” Ulta looks at its loyalty program as a strategic growth driver as well as a source of inspiration, particularly when it comes to marketing campaigns and product innovation. The retailer is currently finalizing its holiday campaign.

How Ulta Beauty is using AI and innovation to drive loyalty

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