Kecia Steelman’s Ulta Strategy: Profit in 2026

There’s a remarkable amount of misinformation circulating about leadership strategies in the beauty retail sector, particularly concerning how executives like Kecia Steelman are shaping the future of companies such as Ulta. Understanding the nuances of a service-focused approach in beauty retail, and how it translates to financial performance, requires cutting through pervasive myths. What does true innovation in beauty retail leadership look like in 2026?

Myth 1: Service Focus is a Cost Center, Not a Profit Driver

Many believe that investing heavily in customer service, including extensive staff training and personalized consultations, is primarily a cost center that eats into profit margins. This perspective often views service as a necessary evil or a “nice-to-have” rather than a core business driver. The assumption is that while customers might appreciate good service, it doesn’t directly translate to increased sales in a measurable way, especially in a product-driven industry like beauty retail where brand appeal and price are often seen as paramount. This couldn’t be further from the truth in the current retail environment. Under Kecia Steelman’s Ulta leadership, the emphasis on service is unequivocally positioned as a profit driver. Ulta’s financial results consistently demonstrate this. For instance, a 2025 report by the National Retail Federation (NRF) highlighted that retailers excelling in customer experience saw a 1.7x higher year-over-year growth in revenue compared to those lagging in service [National Retail Federation](https://nrf.com/research-insights/nrf-reports/state-retail-reports). Ulta’s strategy involves helping beauty advisors with advanced product knowledge and the ability to offer tailored recommendations, from skincare routines to makeup application techniques. This goes beyond simple sales. It builds trust and cultivates a loyal customer base willing to spend more over time. When a customer feels genuinely understood and helped, they’re more likely to return, try new products, and recommend the store to others. This isn’t just anecdotal. It’s reflected in metrics like customer lifetime value (CLV), which Ulta has consistently worked to enhance through its loyalty programs and service initiatives. The investment in service personnel and training is an investment in long-term revenue growth.

Myth 2: Digital Retail Makes In-Store Service Obsolete

With the rise of e-commerce and strong online beauty communities, some argue that the physical retail store, and by extension, in-store service, is becoming less relevant. Why bother with a sales associate when you can find thousands of reviews, tutorials, and product comparisons online? This myth suggests that the digital sphere provides all the information and inspiration a customer needs, rendering face-to-face interactions unnecessary or even intrusive. The idea that digital channels are cannibalizing physical retail experiences overlooks a fundamental human need for connection and expert guidance. However, Kecia Steelman’s approach at Ulta defies this notion by smoothly integrating digital and physical experiences. Rather than seeing digital as a replacement, Ulta uses it to enhance in-store service. For example, Ulta’s GLAMlab augmented reality tool, accessible via their mobile app, allows customers to virtually try on makeup products before even stepping into a store [Ulta Beauty](https://www.ulta.com/glamlab). This digital exploration often drives customers to physical locations for personalized consultations and to experience products firsthand. Once in-store, beauty advisors can use this prior digital engagement, offering more targeted advice. The service focus isn’t about pushing products. It’s about providing solutions. A study by Accenture in 2024 found that 78% of consumers still prefer to shop in-store for beauty products, citing the ability to see, touch, and try products, and to receive expert advice as primary motivators [Accenture](https://www.accenture.com/us-en/insights/retail/consumer-research-future-retail). This demonstrates that while digital tools are powerful, they supplement, rather than supplant, the value of human interaction and expert guidance in a retail setting.

Myth 3: All “Service” is Equal and Delivers the Same Value

A common misconception is that any form of customer service, from a friendly greeting to a quick checkout, counts equally towards a positive customer experience. This leads to a belief that superficial gestures are enough to satisfy customers and build loyalty. The myth implies a one-size-fits-all approach to service, overlooking the depth and quality of interaction that truly differentiates a retail experience. It’s not enough to simply have service. The kind of service matters deeply. Under Kecia Steelman’s direction, Ulta has carefully defined what constitutes high-value service. It’s not just about politeness. It’s about expertise, personalization, and genuine problem-solving. Ulta’s beauty advisors undergo rigorous training that covers not only product knowledge but also consultation techniques, understanding diverse skin types, and mastering various application methods. This specialized training helps them to offer truly bespoke advice, whether it’s recommending the perfect shade of foundation or suggesting a complete anti-aging regimen. The distinction here is between transactional service (e.g., “Can I help you find something?”) and transformational service (e.g., a personalized skin analysis followed by tailored product recommendations and usage instructions). The latter builds far stronger customer relationships and drives repeat business. A 2025 report from Deloitte on consumer expectations highlighted that 73% of consumers value personalized experiences, and 62% are willing to pay more for them [Deloitte](https://www2.deloitte.com/us/en/insights/consumer-business/consumer-insights/consumer-products-trends.html). This suggests that generic service simply doesn’t cut it anymore. Customers expect and reward genuine, informed assistance.

Myth 4: Loyalty Programs Are Enough to Drive Customer Retention

Some businesses mistakenly believe that once a loyalty program is in place, customer retention is largely handled. The idea is that points, discounts, and exclusive offers are sufficient incentives to keep customers coming back, regardless of their in-store experience. This myth separates the mechanics of a loyalty program from the underlying customer journey, suggesting that transactional rewards alone can compensate for shortcomings in service or product availability. While Ulta’s Ultamate Rewards program is incredibly successful, with over 40 million active members as of late 2025 [Ulta Beauty Investor Relations](https://ir.ulta.com/investor-relations/default.aspx), Kecia Steelman’s strategy acknowledges that loyalty is earned through a combination of tangible rewards and exceptional service. The program itself acts as a framework, but the true retention engine is the consistent, positive experience customers have with Ulta’s beauty advisors and overall store environment. The loyalty program enhances the service experience by allowing advisors to access customer purchase history and preferences, enabling even more personalized recommendations. A customer who earns points and receives outstanding advice is far more likely to remain loyal than one who only gets discounts. The program, therefore, is a facilitator of deeper engagement, not a standalone solution. It’s an ecosystem where rewards and service reinforce each other.

Myth 5: Customer Service Only Matters for High-End Products

There’s a prevailing belief that detailed, high-touch customer service is only necessary or expected when purchasing expensive, luxury beauty items. For more affordable or everyday products, the assumption is that customers are primarily driven by price and convenience, and therefore, extensive service is overkill. This myth creates a two-tiered approach to retail, potentially alienating a significant portion of the customer base. Ulta’s success under Kecia Steelman demonstrates a commitment to providing excellent service across its entire product spectrum, from mass-market brands to prestige offerings. The philosophy is that every customer, regardless of their budget or the price point of the products they’re interested in, deserves informed and helpful guidance. A customer buying a $10 drugstore mascara might still need advice on application or removal, just as much as someone investing in a $100 serum. By offering consistent, high-quality service for all products, Ulta cultivates an inclusive environment where every shopper feels valued. This broadens their appeal and strengthens their market position, proving that a service focus beauty strategy isn’t exclusive to luxury segments. It’s about helping customers to make the best choices for their needs, irrespective of price. The beauty retail field is complex, but leaders like Kecia Steelman are demonstrating that a relentless focus on service, intertwined with smart digital integration and empowered associates, is the most reliable path to sustained growth and customer loyalty. Businesses that fail to grasp this well-rounded approach risk falling behind in an increasingly competitive market.