It’s no mystery that Sephora has seen major wins in the beauty industry. Since 1969, this cosmetics brand has sold millions of units in retail stores worldwide and continues to thrive today. But what is it about Sephora’s marketing strategy that sets them apart from similar companies like Ulta and Glossier? What is it about them that other brands just can’t keep up with? The short answer is loyalty. More specifically, how they use personalized loyalty to build a community of beauty advocates.
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Unique Customer Loyalty Structure
What differentiates Sephora’s marketing strategy is its approach to rewards. Though they do have a points-for-purchase model, there is so much more that goes into it. For example, in their rewards bazaar, they have new incentives every Tuesday and Thursday and customers can browse a massive gallery of available products. And their unique collection offers limited edition and exclusive product releases solely for its rewards members. With more perks like free makeovers and complimentary birthday samples, it’s easy to see why so many beauty enthusiasts rave about Sephora.
To get a better understanding of why people are so loyal to the brand, I asked long-time customer and beauty enthusiast Erin Duff her thoughts on Sephora. “I’ve been a Sephora member for over 11 years and it’s because they have such high quality products from so many different brands. I love that you have the option to spend a few rewards points for a sample of something or save up and get big like a custom makeover.”
User Generated Content
Sephora has set the standard as far as what cosmetic brands should be doing with their user generated content. Take the Insider Beauty Community, for example. It consists of forums surrounding beauty tips, live chats with influencers, and stunning photo galleries. But what I think they do really well in UGC is visual commerce. With many gated channels like Makeup is Life and Best Hair Ever, users are able to post and see pictures to help them guide their purchase decisions. All of this has helped grow Sephora grow and sustain a massive presence with over 15 million subscribers on their website and social media.
Whether it’s online sales, in-store, or at events, Sephora uses creative ways to retain its customers among all channels. They do a great job of advertising their loyalty program to their network and it’s evident by their impressive online sales and growing list of retail locations. Their unique spin on omni-channel is the work they do with live events. They are constantly advertising beauty classes, makeover events, and of course their epic annual conference Sephoria.
Sephoria is a one-of-a-kind live forum where influencers, patrons, and celebrities all collaborate and discuss what’s happening in beauty. Their events and creative marketing strategies help reach a more engaged community and turn Sephora’s avid followers into brand advocates. “By fostering personal connections and generating brand love over the years, it’s only natural that we leverage their input and further strengthen our program beyond just perks and discounts,” says Deborah Yeh, senior vice president of marketing and brand at Sephora.
Sephora’s network is continuing to grow and there’s a reason for that. They have implemented many of the right marketing and loyalty strategies to not only grow their customer base, but to retain it as well. Annex Cloud believes that the right combination of customer loyalty, user-generated content, and omni-channel strategies are the keys to retention. We work with many similar beauty and fashion brands and use loyalty to help them nurture and build real relationships with their customers. If you have any questions about marketing or loyalty, contact us or schedule a consultation today!