Ulta’s Digital Glow-Up: Inside the Data, Tech, and Loyalty Engine Fueling Beauty’s Next Era

On the CommerceNext main stage, Ulta Beauty CMO Kelly Mahoney joined Cosmopolitan’s Julee Wilson for a frank discussion about the true engine behind Ulta’s multi-year run of growth. It’s not just about “going digital.” It’s about reimagining what loyalty, data, and customer experience can achieve when they’re all firing in harmony.

Mahoney pulled back the curtain on Ulta’s loyalty program, the brand’s not-so-secret engine: 45 million rewards members, contributing a staggering 95% of total sales. But it’s not just numbers; it’s Ulta’s whole philosophy. Members aren’t just “enrolled”, they’re the center of everything, and the rewards structure is genuinely valuable. Points are simple to earn, frictionless to redeem, and come with tiered access to Ulta’s most sought-after experiences and events.

But what keeps this engine humming is more than mechanics. Ulta’s team is deeply focused on understanding why members return and how to keep them from drifting away. As Mahoney noted, there’s no “set it and forget it.” The program is continuously tweaked, offering Platinum and Diamond members early access to the legendary “21 Days of Beauty,” while younger shoppers are courted with instant gifts, free samples, and digital-first experiences.

Mahoney was clear: Ulta’s digital transformation began years ago, long before “first-party data” became a buzzword. The groundwork, a constantly evolving, company-wide data foundation, now gives Ulta an enviable view of consumer behavior. While the rest of the retail world braces for a cookieless future, Ulta can lean into deep first-party data to fuel personalization, smarter merchandising, and in-the-moment service.

But it’s not just about collecting data, it’s about making it actionable. Mahoney explained how Ulta’s “fusion team” brings marketers, product managers, and technologists into one continuous workflow. It’s not about chasing every new tech, but sustaining an “always-on” process where real-time insights drive new customer journeys, both in-store and online.

This structure, once rare, now increasingly essential, is what lets Ulta test and launch new experiences without the drag of legacy silos. As Mahoney put it, “There’s no finish line for digital innovation. It’s a marathon, not a project.”

For all the investment in AI, automation, and digital platforms, Mahoney returns again and again to the “deeply human” side of beauty retail. With 1,400 stores and 50,000 associates, the human touch is Ulta’s differentiator and tech is a lever, not a replacement.

Virtual try-ons, smarter search, and AI-powered recommendations help Ulta scale personal service. But the real impact comes when data tools empower front-line staff to offer tailored, memorable moments: suggesting the perfect shade, delivering exclusive perks, or offering a first look at an emerging trend.

As Mahoney notes, the future belongs to brands that blend tech and creativity. “We have to help our creatives and teams use these new tools not to replace what makes us unique, but to extend and amplify it.”

Ulta’s growth is also inseparable from its public commitment to diversity, equity, and inclusion. Mahoney emphasized that DEI isn’t an “initiative” to roll out or roll back. It’s the core of the brand, informing everything from product selection and campaign casting to the way Ulta shows up in culture, at Pride, during cultural moments, and through partnerships that reflect all ages, identities, and communities.

In Mahoney’s words: “We’re beauty for all, at every life stage.” This stance isn’t just good values; it’s good business. Ulta’s ability to reflect and connect with every community makes the brand more resilient and more magnetic in an era where customers expect real representation.

Ulta’s digital glow-up is as much about shaping culture as it is about keeping up. Whether it’s leveraging the Super Bowl as a beauty moment or connecting with Beyoncé’s Cowboy Carter fans in ways only Ulta could imagine, Mahoney’s team looks for “unsuspecting places” to surprise and delight. The lesson: Culture moves fast, and the best brands are proactive participants, not passive spectators.

The takeaways from Mahoney’s keynote are clear:

Ulta’s story is proof that true digital transformation is a journey, one powered by operational excellence, brand soul, and a willingness to lead rather than follow.

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