“They bring to life the emotional component of loyalty which is so important and really drives the majority of engagement with our clients.”, I am a market researcher, speaker and author focused on the affluent consumers’ behavior and mindset, including the HENRYs (high-earners-not-rich-yet) mass affluent. Sephora capitalizes on all of that. "We believe emotional rewards are the new currency of loyalty," says Allegra Stanley, Sephora's VP ... [+] of loyalty. Whether you do it alone or join forces with an experienced eCommerce web design agency, use a platform like Swell to create the best loyalty program out there. Customers who are emotionally connected to a brand are “more than twice as valuable as highly satisfied customers.”, And HBR found that “…among customers’ key emotional motivators were their desire to feel a sense of belonging, be thrilled by the shopping experience, and have a sense of freedom and independence.”. Sephora offers its members more promotions, while Ulta offers more birthday perks, but ultimately both programs reward shoppers very similarly. They can either redeem them in store or go online and redeem them through the “Rewards Bazaar”: A good loyalty program doesn’t stay stagnant. The physical Beauty Insider cards have been phased out, so not all clients will have them. Then in 2017 it made the shift to lean into the emotional drivers of loyalty with the launch of its online Beauty Insider Community. Courtesy of Sephora Measuring success. Looking across the retail loyalty landscape, Stanley sees most programs focused on transactional loyalty, doing whatever it takes to make the next sale which usually hinges on a discount. So when I heard that Sephora, one of LVMH’s Specialty Retail houses, is taking its Beauty Insider to an even higher level this year, I wanted to learn how Sephora could make its already great program even greater. Sephora’s Beauty Insider loyalty program is a program by cosmetic brand, Sephora. It’s a real-time, real-talk social forum that has become a great resource for them and for us, because we reach out to them quite often about what they think and what they love,” Stanley explains. Through the online membership community, Sephora has found a way to bring their customers to the website even when they aren’t shopping. You may opt-out by. Even on the checkout page, there isn’t much indication that the loyalty program exists: They provide the option for current users to sign in and redeem their rewards…but nowhere do they encourage new customers or non-members to sign up. Card Members acknowledge that any disputes in relation to the above are to be directed solely to the service establishment providing such services, activities or benefits. If you're a member you'll need to know all the 2019 Sephora Beauty Insider reward, perk and point updates. Look at most any list of the top retail brand loyalty programs and Sephora’s Beauty Insider typically is on it. Reward them for spending more, and make your members (especially your higher spenders) feel like they are a part of something exclusive. If there are certain regulations to your program that your members have to abide by, then make sure you are clear about that with them from the get-go. Here are two things that could be improved upon: As mentioned above, in order to become a VIB member, customers have to spend $350 in one calendar year. Whoa, that's all you get with an American membership? Sephora has gone through a lot of changes lately. Widely successful, the program was extended in 2009 to include a higher tier, called VIB (Very Important Beauty Insider), for the most highly engaged members who spent more than $350 per year. Members in the highest tier have exclusive access to beauty classes, makeovers and a private hotline with a beauty advisor. First, get to know your audience. THEY HAVE THEIR OWN LINGO. Some, like Burberry, even go so far as to burn excess inventory to avoid giving discounts. That’s because having choices makes us feel powerful and in control. And once members accumulate 10,000 points, they are eligible for experience-based rewards. And that’s exactly what Sephora’s Beauty Insider program does. And in turn, they get loyal customers and a high customer lifetime value (CLV). And members of all three tiers are spoiled with gifts during their birthday months: But those who spend more are rewarded more. I founded Unity Marketing in 1992 as a research-led marketing consultancy, following a corporate career in research and information management. “We are driven by what our customers love and want more of. 1 in beauty and health in its personalization index due to its three-tiered system of rewards that cater to customers’ special interests, plus its “generous free gifts at every turn.”. If you’re not sure, then ask them! So how exactly does this program succeed in building a base of repeat, loyal customers? Or at least…from your website. VIB stands for Very Important Beauty Insider and the name Rouge is surely homage to the company’s French ancestry (Sephora was founded in France). Sephora provides their members with both. If your customers have to redeem their rewards within a certain time period, then tell them that. And the benefits of this are multifold: Research has shown that improved engagement leads to a 22% increase in cross-sell, a 13% to 51% increase in upsell revenue, and a 5% to 85% increase in order sizes. The point amount per dollar will increase as your membership level increases. Those emotional drivers including happiness, trust, surprise and delight, anticipation and especially in the luxury realm, pride. I am now a Sephora’s VIB Rouge member. Initially launched in 2007, the free Beauty Insider program was designed to reward members for purchases with select product samples. But for Sephora, the Beauty Insider program is designed to leverage emotional drivers of loyalty. Even if you know you’re going to order your favorite dish, it would probably be nice to have the option to choose from a variety of dishes, right? An exclusive Rewards Bazaar was added in 2016 as an exchange platform where members could redeem points for a wide range of curated products and sets. What would they truly value in a loyalty program? In her free time, she enjoys yoga, rock climbing, blogging, traveling, and soaking up as much eCommerce knowledge as she can. And how could you not want to stay on board with a loyalty program like that? Some of the previous rewards included: three-day VIP passes to the Austin City Limits festival for two; a meeting with the founding team of Verb, the haircare brand; and a five-night trip to Hawaii (surfing lessons included). Allegra Stanley, Sephora’s vice president and general manager of loyalty, had the answer. Best, Laurie The goal of the new benefits to the program are, of course, to add new members, as well as to encourage them to move up in the program. Black and Gold Members are eligible to redeem one birthday gift per year during their birthday month. All of this…and I’m just a basic member (meaning my membership is free). But unfortunately, those dollars expire at the end of each calendar year. To redeem in-store, no purchase is necessary when you are redeeming your birthday gift. All you get a lot of free makeup and skincare value ( CLV ) a Rouge.... Core of everything we do, ” Stanley concludes three tiers are spoiled gifts! 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