Repeat customers are the lifeblood of all beauty brands and retailers. Marketers have to continually reach out to potential new customers, but regular buyers represent the bulk of sales.
No one knows this better than Adore Beauty, Australia’s leading pure-play online beauty retailer. For the 12 months ended June 30th, the company’s revenues jumped 11 per cent to $200 million.
Gross profits for the period also rose 12 per cent to $66.5 million.
Returning customers accounted for 70 per cent of sales over the past year, reveals Adore Beauty. Better yet, they boosted revenues further with higher-than-average spends.
The company’s active customer base also rose 7 per cent to 872,000. Adore Beauty launched its Adore Society loyalty program last year, which accounted for 60 per cent of total revenues.
Adore Beauty debuted its first private label skincare range in June this year – Viviology – in conjunction with James Vivian, the well-known Melbourne-based dermal therapist. The six SKU lineup, including Liquid Exfoliant and Vitamin C Serum, has “exceeded expectations”, says the company.
Fragrance sales were also a standout, representing 4.1 per cent of Adore Beauty’s total sales in the year to June 30th.
Tennealle O’Shannessy, CEO of Adore Beauty, said that the higher proportion of returning customers highlights the future potential for the company’s business.
“Our investments in strategic priorities are contributing to improved customer retention and lifetime value, and will drive sustainable, long-term growth as online adoption in Australia’s beauty and personal care market catches up to the UK, the US and China.”