Businesses across industries use collection-based loyalty programs like points or rewards to boost engagement and retention. And the beauty sector is no exception.
According to Marigold’s 2024 State of Loyalty Report:
- 88% of consumers say their favourite brand rewards them for loyalty.
- 55% want brands to offer points or rewards.
- 80% enjoy getting product recommendations based on previous purchases.
These three stats tell a clear story: successful brands aren’t just offering great products – they’re actively incentivizing long-term relationships. In today’s saturated beauty market, loyalty rewards have become a powerful differentiator. Consumers now expect to be rewarded, and they’re more likely to engage with brands that meet that expectation. Without a compelling loyalty program, beauty brands risk fading into the background.
Moreover, shoppers aren’t just looking for rewards – they crave smart, personalized interactions. Yet many traditional loyalty programs lack the data or flexibility to deliver on this. That gap represents both a challenge and an opportunity for beauty brands determined to stay ahead.
In the competitive beauty space that is shaped by digital accessibility, influencer culture, and product oversaturation – these stats underscore just how essential loyalty has become.
But engagement in this industry faces unique pressures. How can beauty brands maximize the ROI of their loyalty programs in a world of endless options and short attention spans?
Facing the Challenges
Infrequent Purchases Limit Engagement
While beauty products like makeup and perfume are purchased regularly, they don’t match the purchase frequency of groceries or fuel. This more tempered cadence makes it harder for beauty brands to stay top-of-mind and drive regular app or in-store interactions.
Influencer-Driven, Trend-Sensitive Consumers
Beauty buyers are heavily influenced by social media, trends, and influencer content. According to recent surveys and reports, only 30% of consumers consistently repurchase the same product, while 86% admit to buying based on influencer recommendations. Loyalty in beauty is fragile and easily distracted, so brands can’t rely on product quality alone. They need momentum, too.
Limited Data for Personalization
Beauty brands typically sell a narrower set of products. This limits the behavioural data they can collect to drive personalization. Furthermore, they lack visibility into what customers buy outside their own ecosystem. Without cross-brand insights, micro-targeting becomes difficult, and engagement suffers. Beauty brands need that fuller picture of the customer to really make a deep connection.
Lack of Differentiation in Loyalty Programs
In today’s red-ocean market, most beauty loyalty programs look the same. Customers get points, samples, early access, and exclusive events. These perks are appreciated but no longer stand out. To truly build loyalty, beauty brands need to differentiate their programs – and loyalty can be the ideal place to innovate and go above and beyond.
Loyalty-to-PaymentsTM: A Beautiful Solution
CoinBridge’s Loyalty-to-Payments™ platform reimagines what rewards can do in the beauty space, offering unprecedented flexibility, access, and emotional connection.
Tap-to-Redeem, Anywhere
With CoinBridge, any loyalty asset – points, miles, or vouchers – is converted into monetary value. Customers can redeem rewards using their beauty brand’s existing app via a universal “Tap & Go” payment experience, spending on anything, anywhere.
This frictionless functionality keeps the brand top-of-mind even during unrelated purchases. A customer who uses points to buy milk at the corner store is still interacting with your app and your brand.
Transformational Customer Data
Broader redemption options led to more frequent app usage and deeper data collection. Brands gain access to customers’ wider lifestyle and shopping behaviours, not just their beauty habits. This rich data fuels smarter personalization and empowers collaborations, cross-promotions, and precise targeting.
A Financial Lifeline for Tight Times
Consumers are increasingly turning to loyalty rewards to support everyday spending. According to a 2024 YouGov (UK) survey study, 92% of consumers use loyalty programs to stretch their budgets. This trend is echoed by a surprising (June 2024) a sign of growing financial caution.
CoinBridge turns loyalty into financial empowerment, letting customers spend their rewards like cash, anytime. That added value can enhance emotional loyalty and long-term engagement.
The Look of the Future
CoinBridge’s Loyalty-to-Payments™ solution bridges the gap between the whimsical and the mundane, between traditional rewards and everyday relevance. By turning loyalty into a daily financial benefit, it enables beauty brands to:
- Foster consistent, meaningful engagement even between purchases.
- Tap into deeper behavioural insights beyond brand-owned data.
- Provide redemption experiences that are seamless, satisfying, and emotionally resonant.
In an industry where loyalty is often fleeting, this solution empowers brands to build genuine, lasting relationships with their customers at scale.
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