Ulta: CX & Brand Research

Ulta Beauty has long been a destination for beauty lovers, offering a wide selection of cosmetics, skincare, and hair products. However, the new Ulta location at Alps Road in Athens, GA, has been struggling with foot traffic and sales, even after students returned for the fall semester. My research team was tasked with uncovering the reasons behind this underperformance and developing recommendations to drive customer engagement.

Research Approach:
We took a multi-method approach, conducting surveys, in-depth interviews, and shop-alongs to gather insights. The survey, distributed through the UGA Terry College of Business Research Pool, targeted undergraduates who had previously shopped at Ulta. We also conducted shop-alongs at two Ulta locations (Alps Road and Oconee) and a Sephora store to observe how customers interacted with the layout, signage, and staff.

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Our in-depth interviews (IDIs) allowed us to explore customers' shopping preferences and challenges, such as perceptions of Ulta’s loyalty program and interest in in-store events. We hypothesized that increasing awareness of events, improving the loyalty program, and enhancing the shopping experience would drive foot traffic.

Key Findings
Our findings revealed several key insights:

1. Low Awareness of In-Store Events: 98% of survey respondents were unaware of any events at Ulta. This confirmed our hypothesis that promoting in-store activities could increase engagement.
2. Infrequent Visits: 62% of respondents shop at Ulta only a few times a year, suggesting room for growth through personalized promotions.
3. Loyalty Program Perception Issues: A net promoter score (NPS) of -64.91 highlighted dissatisfaction with Ulta’s rewards program. Interviewees noted they prefer Sephora’s loyalty program, which offers more immediate rewards.
4. Logistical Challenges: Interviewees mentioned issues with parking and inconsistent product placement, making the shopping experience frustrating.
5. Desire for Personalization: Customers valued staff assistance and knowledgeable product recommendationsbut noted that engagement was inconsistent between locations.

Shop-Along Insights
The shop-alongs provided further insight into differences between Ulta locations. At the Alps Road store, customers found the layout spacious but felt overwhelmed by cluttered displays. Staff engagement was minimal, which contrasted with Sephora's more engaging customer service. The Oconee location offered a more positive experience with better-trained staff and more consistent product placement, contributing to higher satisfaction.

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Recommendations for Improvement
Based on our findings, we provided the following actionable recommendations to Ulta:

1. Promote In-Store Events More Effectively: Use targeted emails, social media, and on-campus partnerships to increase awareness of events, which could drive foot traffic.
2. Enhance the Loyalty Program: Offer more immediate rewards and allow customers to earn points for small actions like completing surveys, as customers showed a desire to engage but needed incentives.
3. Improve Product Displays and Signage: Create clearer signage and reorganize product displays to reduce clutter and improve navigation.
4. Provide Consistent Staff Training: Train staff to engage proactively with customers, offering personalized recommendations to improve satisfaction.
5. Address Logistical Barriers: Collaborate with the mall to improve parking availability and implement signage solutions to make the store layout more intuitive.

What I Learned
This project provided invaluable lessons in consumer behavior, data analysis, and marketing strategy. I learned how small elements—like the clarity of product signage and staff engagement—can have a significant impact on customer satisfaction. The survey data revealed how important personalized promotions and events are to Ulta’s target demographic, validating our hypothesis that better-targeted marketing could increase foot traffic.

The in-depth interviews also emphasized the importance of understanding customer frustrations and preferences beyond just sales data. For example, the loyalty program was not as valued by students as Ulta might have assumed, highlighting the need for continuous feedback loops and customer-centric innovations.

Finally, this project underscored the value of shop-alongs as a qualitative research method. Observing customers in real time allowed us to capture insights that would not have been possible through surveys alone.

Conclusion
Through this research, we identified several ways Ulta can enhance its customer experience, increase foot traffic, and improve brand perception at the Alps Road location. By focusing on event promotion, personalized rewards, and staff training, Ulta can address the current challenges and create a more engaging environment for its customers. This project gave me practical experience in developing insights, conducting research, and delivering actionable recommendations—skills that I look forward to applying in future marketing roles.

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