For decades, beauty brands largely relied on editors, publishers, and magazines to introduce new products, educate consumers, and shape conversations before the retailer served as the point of purchase. Today, that model is evolving.
As beauty discovery becomes increasingly fragmented across TikTok, Amazon, AI-powered search tools, creators, and brick and mortar, beauty retailers are competing for consumers’ attention long before they make a purchase.
The goal is not simply to sell the products but to foster a community and connection that keep consumers engaged before and well after a purchase occurs. Retailers that successfully maintain that relationship are more likely to influence future purchases, strengthen loyalty, and drive repeat engagement.
The financial incentive is significant. According to Ulta Beauty’s 2025 earnings report, the company ended the fiscal year on January 31, 2026, with 44.6 million active rewards members, who accounted for more than 95% total sales. The company has also reported that omnichannel shoppers historically spend nearly three times more than store-only consumers. These figures help explain why retailers continue to invest heavily in loyalty programs, educational resources, experiential activations, and digital tools designed to strengthen engagement across multiple touchpoints.
While loyalty programs remain important, customer relationships are built through a broader mix of education, expertise, and personalized experiences. At Sally Beauty, Licensed Colorist OnDemand has become both an educational resource and a customer acquisition tool. According to the company, more than 40% of users are new customers, while participants spend more than 60% more on average than new customers who do not use the service.
Credo Beauty has taken a trust-first approach to its customer retention. "The retailers winning right now understand that commerce is the outcome of trust, not the starting point," Lydia Kandel, Vice President of Marketing at Credo Beauty, told BeautyMatter. As consumers seek guidance in an increasingly complex beauty landscape, trust has become a powerful differentiator. According to Kandel, 86% of Credo customers cite trust in ingredients and product quality as their primary reason for shopping with the retailer.
For Olive Young, customer retention is closely tied to discovery. The retailer combines curated assortments with consultations, AI-powered skin analysis, scalp assessments, and educational spaces designed to help consumers navigate an increasingly complex beauty landscape. For Olive Young, discovery sits at the center of its retail strategy. "We see Olive Young as a discovery platform where consumers, brands, and trends come together," Rena Kim, Global Communications Lead at CJ Olive Young USA, told BeautyMatter. "Our role goes beyond selling products. We help consumers discover what's new, what's relevant, and what works for them."
"Beauty retail has fundamentally shifted from a transactional model to a relational one," Chris Kobus, Chief Marketing Officer at Sally Beauty, told BeautyMatter.
As beauty discovery becomes increasingly fragmented, consumers are navigating a growing number of sources before making a purchase decision. Social media, creators, product reviews, AI-powered search tools, and retailer recommendations all play a role in shaping how shoppers evaluate products.
"Shopping for beauty today feels like homework," Kandel said. "Consumers are cross-referencing, researching ingredients, watching TikTok, asking friends, and ultimately still second-guessing themselves."
At Ulta Beauty, trust is built through social storytelling, creator partnerships, in-store expertise, and community-driven experiences. "Trust is built over time, in the everyday moments," Kelly Mahoney, Chief Marketing Officer at Ulta Beauty, told Beauty Matter.
As consumers face more choices than ever before, expertise is becoming an increasingly valuable differentiator.
Sally Beauty has taken a similar approach through expertise, accessibility, and community engagement. "Content isn't just marketing," Kobus said. "It's building relationships and creating value through education at every stage of our consumer journey."
For Sally Beauty, expertise has become a core component of customer engagement and retention. As Kobus notes, consumers are increasingly looking for trusted guidance, making educational support a valuable differentiator in an increasingly crowded beauty marketplace.
That same principle applies to creator partnerships. While influencers were once viewed primarily as promotional vehicles, retailers increasingly see creators as educators, storytellers, and trusted voices, capable of helping consumers navigate products, trends, and routines.
At Ulta Beauty, creator partnerships support product discovery, education, and customer engagement through initiatives such as the Ulta Beauty Collective and the retailer's associate ambassador programs. These partnerships allow the company to connect with consumers in culturally relevant ways while helping brand partners reach new audiences.
Credo similarly prioritizes long-term creator relationships rooted in shared values rather than reach alone. "The ones that perform well are the ones that feel like a partnership, not a placement," says Kandel. "When a creator actually believes in what we are doing, they get our message across and educate in a way no paid activation ever could."
The effort to deepen consumer engagement extends beyond digital channels. Experiential retail has become another way retailers deepen engagement, turning online audiences into real-world communities. Last year, Mahoney noted that Ulta Beauty hosted more than 100,000 in-store events, while Kobus shared that Sally Beauty expanded initiatives such as COLORfest and HBCU campus activations. These experiences create opportunities for education, product discovery, and community building, reinforcing each company's role as a trusted resource rather than simply a point of sale.
Today's beauty consumer rarely follows a linear path to purchase. Discovery may begin on TikTok, continue through creator recommendations, move into AI-powered search tools, and eventually lead to an in-store consultation or online purchase.
In response, retailers are building interconnected discovery ecosystems to meet consumers wherever they begin their journey. Ulta Beauty recently launched on TikTok Shop and introduced Ulta AI, a Gemini-enabled shopping assistant developed in partnership with Google. Sally Beauty has expanded into TikTok Shop while continuing to invest in personalization across its digital ecosystem.
As the company expands internationally, that discovery-first approach remains central to its strategy. Kim notes that Olive Young's objective is not simply to bring K-beauty to new markets but to curate relevant brands, trends, and experiences based on local consumer needs. "The lines between content, commerce, community, and retail are going to keep blurring," says Kandel. "The retailers who figure out how to make all four work together as one experience are going to win."
Beauty discovery is no longer controlled by a single platform or social channel. Consumers move between social media, creators, AI-powered tools, marketplaces, and retailers before making a purchase. As a result, competition for consumer attention has become increasingly intense.
For retailers, success is no longer defined solely by the products they sell. It depends on their ability to remain relevant between purchases and influence how consumers discover, evaluate, and ultimately buy products. Those that can successfully connect loyalty, education, experiences, community, and commerce may be positioned to earn consumer trust and drive long-term growth.
