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Why are beauty loyalty programs invisible?

Encouraged by the success of programs like Sephora’s Beauty Insider, Beauty brands have launched their own loyalty offerings, with branded programs increasing 50% this year. Yet most Beauty brands fail to promote these programs – rendering them essentially invisible. Just a third of Beauty brands advertise their loyalty program on the site home page, and even fewer mention it in emails to consumers, according to L2’s Beauty Loyalty report.

Estée Lauder is an exception, leveraging its site to drive engagement with its E-List loyalty program. Consumers are automatically enrolled in the program when they create site accounts, and for new visitors, a full-screen popup incentivizes signups by offering a 15% discount. The collapsible “Special Offers” section at the bottom of the home screen further drives home the message.

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Advertising a loyalty program on the brand site has a clear payoff. Consumers not only visit brand sites with promoted loyalty offerings more frequently, but spend a longer time browsing: the study finds that shoppers visit 25% more pages on Beauty brand sites that advertise loyalty programs on the home page. Promoting loyalty programs, therefore, should be a no-brainer.

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