In 2007 Sephora launched the BEAUTY INSIDER client loyalty program as a way of thanking clients with special products, exclusive events, and an all-access pass to personalized beauty. The program is available in Sephora stores nationwide and at www.sephora.com. In 2009, Sephora launched V.I.B. [Very Important Beauty Insider], a premium level for BEAUTY INSIDERS giving clients access to exclusive gifts, event invitations, and early access to select products.
And now the BEAUTY INSIDER loyalty program has taken another key step. Sarah Choi, VP of BEAUTY INSIDER, participated in a fascinating interview with Loyalty 360 CEO Mark Johnson to discuss the revamped BEAUTY INSIDER program, what it means for their passionate and loyal clients, and how Sephora’s culture reinforces the program on a daily basis.
Choi told Loyalty 360 that she wanted to re-imagine the loyalty program for the next generation of BEAUTY INSIDER.
Third Tier
Choi: When we started the BEAUTY INSIDER program, it was with the idea that women loved product and it was built around product, not promotion. No one in the industry was doing sampling in stores the way we were. It touched upon a consumer insight about passion for product.
But Choi felt Sephora hadn’t “pushed the envelope” with BEAUTY INSIDER.
We felt like there’s a lot happening, and wanted to go back to core of what she loves. We wanted to focus on the creative look and feel of the program. We launched a third tier, which is huge for us, and we reworked the benefits to truly differentiate our tiers.
On Aug. 12, 2013, the new, revamped BEAUTY INSIDER program launched the third tier known as VIB ROUGE for the most fervent product junkies. The ultimate in bragging rights, this level is reserved for those who spend $1,000 or more in a calendar year and offers unparalleled insider access to one-of-a-kind experiences and rewards. The chic red VIB ROUGE card opens the door to private, limited-list events with brand founders and celebrities, advance access to new products, unlimited complimentary services at the SEPHORA Beauty Studio and a personal beauty concierge hotline.
What Prompted the VIB Rouge Tier?
Choi: We listened to our clients. We spent a ton of time with BEAUTY INSIDERS and what we heard loud and clear was there was a significant opportunity to create a third tier to serve clients in a very different way, and drive a significant part of our sales because these clients love Sephora. They know beauty really well. We wanted to be able to feed that obsession and that passion in a way we hadn’t been feeding it through other tiers.
We saw this as a big opportunity to tailor this group in a different way.
Brand Advocates:
Choi: We haven’t really capitalized fully on the potential of our best clients. We want to make sure we differentiate those who are clearly our best clients. They love beauty and they love Sephora. It’s just a matter of harnessing that and optimizing that relationship with them even further. It felt like an absolute no brainer to be able to do that.
All of a sudden, there’s that level of intrigue. Overall, it feels like the right thing to do. They’ve done so much for Sephora and this has created a great halo effect on the rest of the program.
Part of the Company’s DNA
Choi: For the company itself, everything is BEAUTY INSIDER, VIB, and VIB ROUGE clients. It’s part of the normal language. This has just been part of the DNA of the company. It’s reinforced and the relaunch invigorated the whole organization. It’s about everything we do in every aspect of how we think.
We truly want to maximize our engagement and wallet share with them. We want it to become a no-brainer that Sephora is their choice for beauty.
Content
Choi: We’re educating and servicing our clients. Content goes hand-in-hand with the merchandise we’re trying to sell. Women love product, but they always want to be learning more about it. We’re deepening that relationship and making it more authentic.
Sephora’s Winning Cast Members
Choi: We make sure our store employees understand all of the program benefits and that they recognize different clients in a special way. That is a very big part of the program. How clients feel the program come alive is through interaction with store staff.
Category, product, and type of business model factor into brand advocacy and whether you’re able to create this fanaticism. Loyalty is a whole ecosystem that has to work together. Different facets need to be in motion together and synchronized. Beauty is a category and women are highly engaged. Our stores are very engaged through service levels and merchandising.