Sephora continuously updates its loyalty perks and policies to maintain the success of its program.
SephoraSephora continuously updates its loyalty perks and policies to maintain the success of its program. According to Emeline Berlind, the Senior Vice President and General Manager of Loyalty at Sephora, this constant evolution is crucial in ensuring the program remains vibrant. Since its launch in 2007, Sephora’s Beauty Insider program has garnered over 31 million members in the U.S., slightly fewer than Ulta’s Ultamate Rewards program, which boasts 41 million active members. However, loyalty members have a significant impact on revenue, with Ulta stating that rewards members account for 95% of its sales. While Berlind did not disclose the exact percentage for Sephora, she mentioned that a majority of their U.S. sales come from Beauty Insider members.
To meet customer expectations and maintain satisfaction, Sephora has regularly updated the Beauty Insider program, focusing on the elements that shoppers value the most. Customer studies have revealed that value and convenience are particularly important to Sephora’s customers, which has influenced the program’s changes over the years and where the retailer directs its efforts.
Sephora’s loyalty program operates with three tiers—Insider, VIB, and Rouge—introduced to provide additional benefits to customers who spend more with the brand. Differentiating between tiers without overwhelming benefits can be a challenge. In the past, each tier earned a different number of points per dollar spent, but in 2020, Sephora replaced this structure with Beauty Insider Cash, allowing all members to exchange 500 points for $10. This benefit has become highly popular among members. Other perks offered by Sephora focus on providing a baseline benefit for all members while offering more choices or greater discounts to higher-tier customers. For example, during the spring sale, Insiders receive 10% off, VIBs receive 15%, and Rouges receive 20%. Exclusive samples are also available to different tiers.
Convenience and value are driving overall improvements to the program. Sephora has placed a strong emphasis on delivery-related benefits, expanding free shipping to all Beauty Insider members and introducing options like Buy Online, Pick Up In Store (BOPIS) and same-day delivery. In terms of value, Sephora prioritizes events like the spring and holiday sales, which customers eagerly anticipate throughout the year.
