What Happened:
Sephora's Beauty Insider program has grown to over 44 million members, with leadership expanding benefits for top-tier Rouge customers including exclusive product drops, virtual masterclasses with brand founders, and enhanced rewards during special events like the recent Rouge Celebration weekend.
The retailer launched new ways for members to earn and redeem points, including gamified Beauty Insider challenges that award extra points and the ability for Rouge members to stack point redemptions.
Sephora is leaning into AI-powered personalization with tools like Skin Scan, which combines shade matching with digital skincare analysis to deliver tailored product recommendations, addressing customer feedback that beauty shopping can feel overwhelming.
These insights were discussed during a conversation on Loyalty360’s Brand Stories podcast.
Our Take:
A core takeaway is Sephora's commitment to constantly listening to its client base and, crucially, being willing to take action on that feedback. For example, the launch of the stacked $20 off for 1,000 points redemption option for Rouge clients came directly from feedback requesting greater discounting power for their most loyal members.
Sephora successfully navigates the challenge of managing tiered loyalty by ensuring benefits are graduated. The core birthday gift is accessible to all, providing a reason to join (acquisition), but the VIB and Rouge-exclusive selections offer a clear, tangible incentive to move up and maintain higher status (retention and upsell).
Emmy Brown Berlind, Sephora’s SVP of Loyalty, explained that Sephora ties its loyalty status directly to convenience by offering free shipping with no minimum, as well as omnichannel fulfillment options like same-day delivery and buy online/pick up in store. Furthermore, the brand is meeting customers where they are with payment flexibility, adopting methods like Buy Now Pay Later (even for smaller items) and Venmo.
Lastly, Sephora's use of its Skin Scan tool, which combines shade matching with personalized skincare recommendations, is one of many ways the company is using AI to enhance the customer lifecycle. Skin Scan makes Sephora an informed advisor, ultimately strengthening the emotional connection and making Sephora "top of mind."
Overall, Sephora is doing something most retailers only claim to do: they're listening to customers and changing the program accordingly.
Listen to the full conversation here.