BRAVE COMMERCE: Ulta Beauty’s CMO Michelle Crossan-Matos on Innovation and Customer-Centric Marketing
Episode Release Date: January 7, 2025
In this insightful episode of Brave Commerce, hosts Rachel Tippograph, Founder & CEO of MikMak, and Sarah Hofstadter, President of Profitero, engage in a comprehensive conversation with Michelle Crossan-Matos, Chief Marketing Officer (CMO) of Ulta Beauty. The discussion delves into Michelle’s innovative approaches to marketing, her transition from brand manufacturing to retail, and her strategies for fostering a customer-centric environment in one of the world’s leading beauty retailers.
1. Michelle’s Journey: From Brand Manufacturing to Retail
Background and Early Career
Michelle Crossan-Matos brings a rich tapestry of experience from both brand manufacturing giants and the retail sector. Beginning her career at Procter & Gamble (P&G), she honed her skills in brand building and marketing. Transitioning to Samsung, Michelle expanded her expertise to include strategy and innovation, emphasizing speed and agility.
“Coming to retail, it’s a great question because now I’m like, right, I’ve got all that brand building... and what Samsung really gave me was speed, agility and the ability to really dream and think really big.”
— Michelle Crossan-Matos [04:32]
Return to Retail with Ulta Beauty
Michelle’s passion for retail is deeply rooted, having worked in retail from a young age. Her extensive experience in both manufacturing and retail provides her with a unique vantage point to lead Ulta Beauty’s marketing strategies effectively.
2. Transitioning Skill Sets: From Manufacturing to Retail Marketing
Essential Skills for Retail Leadership
Michelle emphasizes the importance of speed and agility in the retail environment, contrasting it with the strategic frameworks prevalent in brand manufacturing.
“I definitely think the ability to act with speed and agility, not just to do it, but to love it... I love a fast pace. It does not stress me, in fact fuels me.”
— Michelle Crossan-Matos [06:53]
She highlights the necessity of being a "center brain leader," balancing both strategic thinking and swift execution. This dual capability is crucial for navigating the dynamic landscape of retail marketing.
Bridging Strategic Thinking and Execution
Michelle points out that while many excel in strategic analysis or execution individually, the true leadership in retail requires proficiency in both areas.
“You got a bunch of people that work in consultancy firms, really great at strategic frameworks... But maybe execution may be something that.”
— Michelle Crossan-Matos [06:53]
3. Navigating Trends and Maintaining Relevancy
Identifying and Generating Trends
Michelle discusses the unpredictable nature of beauty trends and the importance of a robust framework to identify and capitalize on them. She emphasizes the shift from merely following trends to actively generating them.
“The most unexpected things become trends... The most critical thing is the process of identifying trends.”
— Michelle Crossan-Matos [11:27]
Relevancy as the Next Frontier
At Ulta, the focus has shifted to making relevancy the cornerstone of growth. By placing social media at the center of their strategy, Ulta aims to build meaningful relationships with customers across various cohorts.
“We have made a shift from social being a part of our mix to being at the center of our mix, because we believe relevancy is actually the next frontier of growth for us.”
— Michelle Crossan-Matos [11:27]
4. Operationalizing Social Media and Assortment Strategy
Integrating Teams and Agencies
Operationalizing the fast-paced nature of social media alongside assortment strategy requires seamless collaboration among various teams and external agencies.
“We identify the teams and the organizations that actually have real time learnings about trends... we have very powerful agencies that really support us too.”
— Michelle Crossan-Matos [15:55]
Embracing Technology and Human Connection
Michelle acknowledges the challenges of integrating AI and real-time data analysis with the human touch essential in beauty retail. She advocates for finding a balance where technology enhances, rather than replaces, personal connections.
“We gotta get comfortable with real time ingestion of data and real time automation of curation of content... depend on your business and your brand, the ways of you inserting yourself and your humanness.”
— Michelle Crossan-Matos [15:55]
5. Retail Media: Balancing Monetization and Marketing
Leveraging Ulta’s Loyalty Program
Ulta’s extensive loyalty program, comprising 44 million members, serves as the backbone of their retail media network, UB Media. Michelle explains how this network allows Ulta to offer bespoke brand-building services to various brands, enhancing both Ulta’s and partner brands’ market presence.
“We have one of the largest loyalty programs in the country, I can offer a bespoke brand building service to brands that are small all the way to large.”
— Michelle Crossan-Matos [18:22]
Focusing on Core Strengths Amid Competition
Instead of getting distracted by competitors, Michelle stresses the importance of playing to Ulta’s strengths, particularly their robust loyalty program, to create a synergistic ecosystem that benefits both consumers and partner brands.
“You got to celebrate your own strengths and really focus on them and don’t get distract of my competition.”
— Michelle Crossan-Matos [18:36]
6. Building the Creator Ecosystem and Influencer Networks
Empowering Associates as Influencers
Michelle highlights Ulta’s unique approach to influencer marketing by integrating store associates into their creator ecosystem. This strategy not only leverages the authentic connections associates have with customers but also fosters a community-driven marketing environment.
“We have our own influencer network. And we launched Ulta Beauties, which is our own associates being rewarded as creators.”
— Michelle Crossan-Matos [21:12]
Launching the Joy Equity Platform
The Joy Equity Platform campaign exemplifies how Ulta leverages its associates to inspire and drive brand narratives. By empowering associates to share their stories, Ulta creates a more relatable and impactful marketing presence.
“Our associates are more than just associates... they are creators, they are inspiration of our brand campaign.”
— Michelle Crossan-Matos [21:12]
7. Personal Insights and Bravery in Leadership
Embracing Change and Overcoming Challenges
Michelle candidly shares her experiences with imposter syndrome and the courage required to transition between different roles and geographies. Her journey underscores the importance of self-confidence, continuous learning, and adaptability in leadership.
“Everyone is a leader in something and a lagger in something else... you can be. But it takes real hard work and grit.”
— Michelle Crossan-Matos [11:27]
Living with Purpose and Joy
Balancing a high-powered career with personal life, Michelle speaks about the bravery in moving countries multiple times to embrace new cultures and raise her family, which deeply influences her professional ethos.
“I grew up in the brand building golden age... we're just gotta get comfortable with it.”
— Michelle Crossan-Matos [23:52]
8. Concluding Thoughts: Sprinkling Joy in Marketing
As the conversation wraps up, Michelle emphasizes the importance of joy and happiness in both personal and professional spheres. Her newly launched podcast, Joy of and Talking about Joy, reflects her commitment to spreading positivity and fostering a joyful community.
“This is the moment for all of us to just sprinkle a little bit more joy. The world needs it.”
— Michelle Crossan-Matos [26:01]
Key Takeaways
- Adaptability and Agility: Success in retail marketing hinges on the ability to act swiftly and adapt to changing consumer behaviors.
- Strategic and Executional Balance: Leaders must balance strategic thinking with the ability to execute plans rapidly.
- Relevancy Through Social Media: Placing social media at the core of marketing strategies is essential for maintaining relevancy and fostering customer relationships.
- Empowering Internal Influencers: Utilizing store associates as influencers can create authentic and impactful marketing narratives.
- Embracing Technology with a Human Touch: Leveraging AI and real-time data should complement, not replace, personal connections with customers.
- Fostering Joy and Purpose: Integrating joy into both personal and professional life enhances leadership and organizational culture.
Further Listening
If you found this episode enlightening, consider tuning into other episodes of Brave Commerce, including discussions with Sarah Travis, President of Roundel (Target’s retail media business), and Rich, GM SDP of the Walmart Connect business. Expand your knowledge on innovative retail strategies and marketing insights from the world’s top retailers.
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