Retail AI
Loyalty Optimization

Ulta Beauty

Transforming Ultamate Rewards from a points program into a personalization engine that drives +172% campaign conversion and -57% customer churn.

+172%

Campaign Conversion

37M

Members

-57%

Customer Churn

Top Segments

Beauty Enthusiasts

8.2M members

+234%

Skincare Focus

6.1M members

+189%

Fragrance Collectors

4.8M members

+156%

Value Seekers

11.4M members

+112%
The Challenge

37 Million Members, Zero Personalization

Ulta Beauty had built one of the largest beauty loyalty programs in America—but treated every member the same. Skincare enthusiasts received fragrance promotions. Value seekers got prestige brand emails. The result? Overwhelming product catalogs, impersonal recommendations, and conversion rates that left billions on the table.

12%

Email open rate

25K+

Products with no guidance

3.2%

Campaign conversion rate

Segment Intelligence

AI Customer Segmentation

Click to explore how AI tailors engagement for each member segment

Beauty Enthusiasts

8.2M members

+234%

Skincare Focus

6.1M members

+189%

Fragrance Collectors

4.8M members

+156%

Value Seekers

11.4M members

+112%
Beauty Enthusiasts

Avg. Spend

$127

Segment Size

8.2M members

Top Categories

Prestige Makeup
Fragrance
Hair Tools

AI Strategy

High-touch personalization with new product launches

Sample Personalized Offer

Email Preview

"Sarah, Charlotte Tilbury just dropped their Holiday Collection. Based on your love of their Pillow Talk line, here's exclusive early access + 2X points today only."

Journey Transformation

Before vs After AI

Hover to see the AI capabilities driving each improvement

1
Awareness

Before

Generic ads

1.2%

After

Personalized discovery

3.8%

2
Engagement

Before

Mass emails

12%

After

Behavior-triggered content

41%

3
Conversion

Before

Static offers

undefined churn

After

Dynamic personalization

undefined churn

4
Retention

Before

Win-back campaigns

28% churn

After

Preemptive engagement

12% churn

Loyalty Intelligence

Ultamate Rewards Optimization

Predictive Tier Nudges

AI identifies members closest to next tier and sends targeted incentives

+23% upgrades

Dynamic Point Multipliers

Personalized bonus events based on individual purchase patterns

+67% participation

Churn Prevention

Risk scoring triggers preemptive retention offers 30 days before lapse

-57% churn

Cross-Category Discovery

AI recommends new categories based on affinity modeling

+34% basket expansion
"We went from batch-and-blast campaigns to truly individualized experiences for 37 million members. The AI doesn't just predict what products they'll buy—it knows when they're ready to discover something new. That's the difference between selling and delighting."
JM

Jessica Martinez

Director of Loyalty Analytics, Ulta Beauty

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