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Relationship-Strengthening Reward Programs

Clean the Sky - Positive Eco Trends & Breakthroughs

Sephora's Beauty Insider Program Can Be Personalized

— May 1, 2018 — Fashion
Sephora's Beauty Insider is a three-tier reward program that is dedicated to strengthening the relationship between the cosmetic retailer and its consumer. The first level is the 'Insider' and is free for every Sephora shopper. The Consumer receives a birthday gift, access to the rewards bazaar as every dollar they spend translates to a point, as well as admittance to Sephora's Beauty Insider community. The second level is the VIB for customers that spend more than $350 a year and they get additional monthly gifts and one free custom makeover.

However, where Sephora's Beauty Insider program really gets exciting is on the Rouge level -- for customers who spend more than $1,000 a year. This achievement strengthens brand-customer relations by way of experiential and personalized treatment. Members enjoy free custom makeovers, free shipping, a private hotline and invitations to exclusive events.
Trend Themes
1. Personalized Reward Programs - Businesses can explore personalized reward programs similar to Sephora's Beauty Insider to help strengthen customer engagement and loyalty.
2. Tiered Reward Programs - Introducing a tiered reward program that offers varied benefits to customers depending on their spend can boost customer retention and satisfaction.
3. Experiential Rewards - Offering unique experiences to high-spending customers similar to Sephora's Rouge level can enhance brand-customer relations and create lasting memories.
Industry Implications
1. Retail - Retailers can benefit from offering personalized and tiered reward programs that prioritize customer engagement and loyalty.
2. Cosmetics and Beauty - Cosmetic retailers like Sephora can continue to enhance customer satisfaction and loyalty by offering experiential rewards and personalized benefits.
3. Hospitality - Hotels and resorts can explore tiered reward programs that offer experiential benefits to high-spending customers to drive up customer retention and revenue.
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