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Listrak Report Highlights Impact of SMS, Loyalty Programs, AI in Beauty and Fashion

Style and Beauty

Business Honor
20 March, 2025

Beauty and fashion brands see growth through SMS, loyalty programs, and AI marketing strategies.

The 2025 Beauty & Fashion Benchmark Report is a recent Listrak report that has shown important insights about consumer behavior and marketing tactics, highlighting the increasing influence of loyalty programs, SMS campaigns, and AI-driven solutions for fashion and beauty firms.

According to the survey, beauty consumers are 2.6 times more likely to convert after receiving SMS price decrease alerts and twice as likely to do so after receiving SMS cart rejection messages. Consumers of fashion also showed a notable move toward mobile purchasing, as shown by the year-over-year conversion growth of all examined SMS campaigns in 2024.

Programs for loyalty have become a key factor in engagement. Beauty businesses achieved twice the conversion rates compared to other benchmarks, with a startling 60-fold rise in loyalty-related marketing sends year over year. Fashion brands, on the other hand, had a 167% growth in loyalty mailings, indicating a great emphasis on updated loyalty tactics to keep current clients.

Brands relied on urgency-driven ads and reactivation initiatives to address issues like window shopping and dormant customers. In the beauty industry, browse abandonment sends increased by 51%, and cart abandonment sends increased by 42%. As acquisition expenses rose, fashion businesses prioritized reactivating dormant customers while implementing limited inventory, price reduction, and replenishment programs.

The importance of AI-driven marketing techniques was also stressed by the study. Brands are advised by Listrak's data to use tools such as AI-powered product suggestions in email campaigns, channel affinity analysis to target customers on preferred platforms, and recurring automated campaigns that promote deeper product discovery.

The results, which are based on an examination of 125 billion messages received by more than 1,000 e-commerce customers in 2024, provide crucial advice for companies trying to maximize their marketing efforts in the cutthroat fashion and beauty industries. Listrak said the findings show how customer tastes are changing and how crucial it is to use data-driven solutions to get outcomes in real time.