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Sephora’s Loyalty Program Knows What Customers Want

January 26th, 2020

Loyalty. I think we can all agree that’s a pretty good character trait to have. Loyalty is what we look for in our personal relationships in life; it’s a good quality to point to look at when deciding who’s going to be a good friend or partner. It’s not just us anymore, though. Companies are looking for loyalty, too, in their customers. All those special VIP deals and rewards programs companies offer you to join are made in order to keep your loyalty, to entice you to buy more or come more often so you can get those special benefits. Most restaurants or retail companies have some sort of loyalty program. However, Sephora is taking this concept into an entirely new direction. With its 3-tier Beauty Insider program, where customers can move up levels based on the amount they spend each year, Sephora’s loyalty program was already considered one of the top in the country. Recently, however, Sephora has made even bigger strides in their Beauty Insider program. They’ve shifted focus from monetary loyalty, based on the sales and discounts a person could get by being part of the program, to emotionally driven loyalty. Allegra Stanley, senior VP and general manager of loyalty, explains that “Research shows 75% of what drives customer engagement and loyalty are emotional perks” (Danziger). Sephora is realizing the importance of creating specific emotions within its members such as “happiness, trust, surprise and delight, anticipation and especially in the luxury realm, pride”, and honing in on that to make sure the rewards deliver. While top members of the Beauty Insider program may get a great discount for the makeup they’ve been eyeing, other perks no include a signed copy of Rhianna’s book and a box of her Fenty makeup line, a trip to a winery, or a personal house call with a professional brow expert. Of course, transactional perks will still remain a part of the loyalty program, but even with those monetary rewards available, Sephora claims “transactional drivers remain only 27% of the holistic measure of customer satisfaction” (Danziger). Sephora takes into account how customers feel and what they want, making the customers’ stakeholder analysis more powerful and important than in other businesses. “We are driven by what our customers love and want more of,” says Stanley, emphasizing the attention Sephora gives to customers’ needs and wants. “The way we think about loyalty is that our clients are the core of everything we do.”

Original source: “How to Make a Great Loyalty Program Even Better? Sephora Has the Answer” by Pamela Danzinger. https://www.forbes.com/sites/pamdanziger/2020/01/23/how-to-make-a-great-retail-loyalty-program-even-better-sephora-has-the-answer/#10475916287a

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