Beauty retailer Ulta Beauty has teamed up with gamified loyalty program company Hang to test a new initiative called GlamXplorer, which is currently available to a select group of Ulta Beauty Rewards members. Initially, 1,000 of Ulta’s top-spending loyalty customers were chosen to experience the program during its soft launch. Now, eight months later, the results of this pilot are being shared.
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Ulta BeautyBeauty retailer Ulta Beauty has teamed up with gamified loyalty program company Hang to test a new initiative called GlamXplorer, which is currently available to a select group of Ulta Beauty Rewards members. Initially, 1,000 of Ulta’s top-spending loyalty customers were chosen to experience the program during its soft launch. Now, eight months later, the results of this pilot are being shared.
GlamXplorer includes 42 mini-games, such as “21 Questions,” “Word of the Day,” and various memory games, along with timed challenges and 30 quests featuring virtual makeup try-ons via Ulta’s VTO GLAMlab. Increased customer engagement with these activities leads to more rewards, which are tailored to individual preferences and include gift cards, discounts, and beauty products.
The new program is designed to complement, not replace, Ulta’s existing Ultamate Rewards Program. The company has yet to announce when it will be available to all customers, with current access provided through an Ulta-specific web link.
Michelle Pacynski, VP of Digital Innovation at Ulta Beauty, commented, “We are investing in cutting-edge technologies and innovative approaches that enhance beauty discovery through engaging and rewarding experiences for our guests.” She added that Ulta’s large loyalty base made Hang’s gamification approach particularly appealing for exploring new ways to transform beauty rewards.
Ulta Beauty and Hang have established a strategic partnership, with Ulta investing an undisclosed amount in Hang through its innovation fund, Prisma Ventures.
GlamXplorer’s mini-games draw from popular mobile game elements. For example, the “Word of the Day” game, inspired by the success of the New York Times’s Wordle, challenges players to identify a beauty-related word in three guesses. Successful guesses earn virtual loot boxes with real-life rewards like discounts and product offers.
The program has created a vibrant community of beauty enthusiasts who connect on social media platforms such as Reddit to discuss the games and share experiences, with users actively seeking advice and discussing game-related questions.
Matt Smolin, co-founder and CEO of Hang, noted that despite Ulta’s loyalty program having around 40 million users, there was a need to create more engaging and personalized experiences. This contrasts with Sephora’s Beauty Insider program, which has 34 million members.
Smolin explained that traditional loyalty programs, which involve earning points through spending and redeeming them for rewards, have become repetitive and less engaging. GlamXplorer’s incorporation of virtual loot boxes has proven effective in maintaining user interest by offering randomized rewards for specific actions.
The pilot program has shown promising results, with 86% of participants returning the following week. On average, users engaged with the mini-games six times per week, spending a median of 11 minutes per session. To date, over 68,000 quests have been completed.
Personalization is a key feature of GlamXplorer. Future experiences and rewards will be highly personalized using AI, based on customers’ preferences and behaviors across e-commerce and social platforms. This approach aims to provide meaningful and valuable rewards, enhancing customer engagement and satisfaction.
The success of Ulta’s gamified loyalty program demonstrates that integrating gamification and leveraging technology for personalization can create more dynamic and rewarding customer experiences. On March 18, Ulta reported a 10.2% increase in fourth-quarter net sales, reaching $3.6 billion.
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Source: Ulta
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