Name: Ulta Beauty CMO on Evolving a 47 Million-Member Loyalty Program into a ‘Relationship Engine’
Uploaded: 2026-06-23T17:12:00Z
Duration: 6 min 19 s

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Ulta Beauty Chief Marketing Officer Kelly Mahoney explained that the company’s massive loyalty program, which has grown from 17 million members 11 years ago to 47 million today, is now viewed internally as a relationship engine. To help customers navigate an overwhelming number of choices, Ulta utilizes a proprietary algorithmic recommendation system known as a "beauty graph" to anticipate needs and curate highly personalized experiences. Photo: WSJ Leadership Institute

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Ulta Beauty Chief Marketing Officer Kelly Mahoney explained that the company’s massive loyalty program, which has grown from 17 million members 11 years ago to 47 million today, is now viewed internally as a relationship engine. To help customers navigate an overwhelming number of choices, Ulta utilizes a proprietary algorithmic recommendation system known as a "beauty graph" to anticipate needs and curate highly personalized experiences.

Ulta Beauty CMO on Evolving a 47 Million-Member Loyalty Program into a ‘Relationship Engine’

We are here with Kelly Mahoney, the CMO of Ulta Beauty, a brand we all know. It's pretty much on every storefront, as far as I can tell, on every corner. So beauty has really evolved and changed and there's a lot more personalization and I think experimentation. You've been at the company for 11 years?

I have. I've been 11 years.

CMO four

18 months.

And so how's that going?

Amazing. It's really great. Kecia Steelman is our CEO, she stepped in about 19 months ago and then hired me, promoted me internally to chief marketing officer. I couldn't be more thrilled.

And what's your plan now that you've been there? 'Cause it's not a new company to you, you actually knew the company.

Yes.

So you must have had sort of a vision for, you know, where you wanted to go when you took the role.

Yeah, I mean in our first year it was really clear we needed to reignite our brand's purpose. We have something really amazing at Ulta Beauty. Just go ask anybody on the street and they'll tell you how much they love Ulta Beauty. But we wanted to reignite that brand's purpose, make sure that we were pushing in the spaces of like wellness and lifestyle. So really finding meaningful ways that we can be a part of our guests lives was sort of top and that hopefully shows in some of the work we've been able to do. But also being and and shaping the culture, conversation and social across all socials. It's a really important channel within the beauty category in particular. And then as you said, just next level loyalty and personalization. Loyalty is how we carved out so much of our growth up into this point, now though that we have as many members as we have, which is incredible. Leveraging the understanding of the customer to curate personalized experiences is great.

Are you doing anything really different with your loyalty program? I mean, are you building community in the store? Like what are you doing that we could learn from?

Yeah, Loyalty is such an important program for us. It's more than a program. I like to call it a relationship engine. So we're really trying to push the organization to think about it as a relationship engine. And the Ulta Beauty rewards program has been around for, when I joined 11 years ago, we had 17 million members, now we have 47 million members. That's incredible growth. Yes, yes. And since then we've just added more and more to the program. If you look at social, our guests will tell us it's the number one program. It provides so much value. We do build on the program though primarily through the way in which we personalize the experience, leveraging our beauty graph, which is a proprietary algorithmic recommendations engine. And it helps us, it helps us all things beauty, all in one place is great, but it can be very overwhelming if you're really trying to navigate our assortment and all the things that we have to offer.

Because sometimes you come into the store and there's so many choices,

There's so many. How do we really narrow down and understand you to the point where we start anticipating your needs. Then there's the experiential side of it. We're doing so much now with experiential and tying in membership so that you're getting the exclusive opportunity to go to Bottle Rock with us or go to Lollapalooza or enjoy some eventing that we're doing. Even inside our stores, we're doing birthday parties, which has been so much fun.

So creators must be a big part of your marketing ecosystem.

Yes.

Creators is a big thing here at Canvas. What is it that we should all take away from what you've been learning?

I think we've been an early adopter of creators. It's just inherent to our industry. So beauty and creators, this is where the real authentic influence does happen. I think the best thing or the thing I'm really, really proud of with our team is we have a program called Ulta Beauties. So it's where we take in many of our store associates that are influencers in their own, right, that are creators, that have a presence online and we brought them in to the tent and we've trained them and then we allow them to kinda speak on our behalf. It's a really authentic way to get our message out, who better, but our store associates to talk about how great our brand is or the merits of some product or the services that we offer.

They're basically in-house ambassadors.

That's right.

So, you guys did some research recently and I read that Gen Alpha teen boys are, you know, early adopters of beauty. I thought it would be interesting to hear about that. Because it's counterintuitive to what some people might think.

It is. We wanna understand the Gen Alpha. They're incredibly engaged in this category in general and so it's important to us that we understand what motivates them and in beauty and I think with Ulta Beauty we have a responsibility to really assist them as they kind of start off their journey in the beauty and wellness space. I think there's no other place, but Ulta Beauty to kind of start out your relationship, your healthy relationship with beauty. It was surprising to see that boys, teen boys are equally as engaged in the category as young girls. I love that. That's very optimistic for us as a beauty category and how do we create experiences for them because they come at it a little differently than girls do, but they equally wanna feel their very best every single day.

I heard that you partnered with Supergirl, so I wanted to give you an opportunity to tell us about that.

Oh my gosh, I'm so excited about this one. It's a really great partnership. I don't call it a partner, I don't call it a sponsorship. It's not like we're putting our brand and just slapping our brand or our logo on something. It's truly immersive. It's truly 360. But what we did is, you know, we cut an ad in preparation for the movie to launch on June 26th. It's "Rock Your Look, Find Your Power" starring Milly Alcock. So she herself is the perfectly imperfect superhero who embodies our values, which are expression, empowerment, connection, community. We love her and she just does an amazing job kinda rocking her look in this ad. Then we carried that through our stores with some really great ways in which we're merchandising not only products, but also looks across three different decades. So it's like 80s, 90s, and you know, the glam power look. And that's been a lot of fun 'cause socially we're capturing a lot of content. We're supporting Milly as she kind of does her press junket and at the premiere. So it's just a really great bringing to life, this nice place or this intersection where culture and beauty meet and it felt like a kind of match made in heaven. When we talk about the superpowers of beauty, it's like, yeah, I feel like we need to get behind Supergirl.

Kind of a natural for you. Well, thank you so much for joining us and we're all gonna be looking to see what magic you're gonna create around the 26th.

Thank you very much, it's great to be here.