Sephora’s Beauty Insider program has become a shining example of how to build allegiance that lasts. But what's really behind its success?
As a loyalty professional, you surely know it's more than just points and discounts. Sephora has mastered blending rewards with emotional drivers, keeping customers shopping and fully invested in the brand.
This article deeply delves into the strategies that make Beauty Insider so spot on. From its tiered system to personalized perks and premium events, we'll uncover the elements that have set it apart in a crowded market.
If you're looking to implement your own programs, Sephora offers some key takeaways that you won't want to miss.
Sephora is a leading global beauty retailer renowned for their vast selection of skincare, makeup, fragrance, and haircare products from both established and emerging brands.
Founded in 1969 in France, Sephora is now owned by LVMH (Moët Hennessy Louis Vuitton), a luxury conglomerate. Sephora's customer experience is defined by their emphasis on product exploration, allowing people to try products in-store, and their successful Beauty Insider loyalty program, which offers incentives based on purchases.
The described brand has been a significant driver of LVMH's growth. In 2023, Sephora's performance contributed to a 25% year-over-year increase in LVMH's selective retailing division, reaching €17.9 billion in revenue. This division, which includes Sephora alongside other retailers like DFS and Le Bon Marché, is the second-largest business unit within LVMH.
Sephora's "exceptional" sales in North America, Europe, and the Middle East were particularly notable, with strategic initiatives such as its collaboration with Kohl's, expected to be a $2 billion business by 2025.
Sephora is also known for their focus on inclusivity and innovation.
Their Sephora Accelerate program supports emerging beauty brands, particularly those founded by people of color, fostering diversity within the beauty industry.
Another initiative, Sephora Squad, also highlights influencers from diverse backgrounds to reflect their client base better, supporting creators through paid partnerships and mentorship.
The Sephora Beauty Insider program is a sophisticated example of brand attachment done right.
As a loyalty expert, you'd recognize its power lies in the tiered and points-driven structure. Additionally, you’d know how it seamlessly integrates personalized rewards with emotional engagement.
The scheme was launched in 2007 as one of the first programs in the beauty industry. The program itself is structured in tiers, offering increasing perks as clients spend more.
Buyers earn points for every dollar spent, which can be redeemed for exclusive products, experiences, or meetings.
Now Sephora Beauty Insider is a major player in the brand's success story, drawing in millions of dedicated shoppers. By 2023, the program had grown to a whopping 34 million members, reflecting its popularity and proven track record of keeping people engaged.
Interestingly, 80% of Sephora's transactions are made through Beauty Insider members, which highlights the program is to its business model.
Retail experts like Allegra Stanley Krishnan, Sephora's VP of Loyalty, highlight the program's shift from purely transactional to an interactive experience based on emotions. The combination of personalization, gamification, and exclusivity is what makes Beauty Insider so powerful.
"The way we think about loyalty is that our clients are the core of everything we do. We are driven by what our customers love and want more of. So it’s not about what their loyalty demonstrates to us, but what we can deliver to our clients that creates the most meaningful and connected experience with our brands."
Allegra Stanley, VP of Loyalty at Sephora, source
To sum up, Sephora has perfected the craft of combining aspirational rewards with data-driven insights to offer shoppers an experience that makes people invest for the long term.
If you're looking to build a genuinely impactful program, Sephora's strategy is the gold standard worth studying carefully.
Sephora's Beauty Insider program is structured into three membership levels, also called tiers: Insider, VIB, and Rouge. Each offers different perks based on how much a customer spends over the year. As people move up through the tiers, they unlock more and more benefits.
When a buyer first signs up for Sephora’s Beauty Insider program, they're placed in the Insider tier. This base level already offers some attractive perks:
"What's been kind of the bedrock of the program … every time we do consumer research, it's always the No. 1 benefit, is the birthday gift. People just love birthday gifts. We work really hard with the brands that participate to make it a compelling gift each year. And we've continued to offer more choice to our clients as well over the years." Emeline Berlind, senior VP of loyalty at Sephora, source
Once a member spends $350 or more annually, they advance to the Sephora VIB tier, which offers benefits, such as:
The Rouge tier, reserved for people who spend $1,000 or more per year, offers the most exclusive benefits:
"The right balance of transactional and emotional is required."
Allegra Stanley, VP of Loyalty at Sephora, source
Of course, if a customer makes it to Sephora VIB or Rouge but doesn't spend enough the following year, they'll drop down to the appropriate tier. For example, if a VIB member doesn't spend at least $350 the following year, they'll go back to Insider status. Similarly, if a Rouge member doesn't reach $1,000, they'll be downgraded to VIB or Insider, depending on their total spending. That's how tiered systems usually work.
Yes, joining the Sephora Beauty Insider program is entirely free. After signing up, members can immediately begin earning points with every purchase and enjoy access to various rewards, special offers, and upscale happenings.
To get a Sephora Beauty Insider account, customers need to sign up for free either online at Sephora’s website or through the Sephora app.
During registration, users provide basic information like their name and email, which allows them to start earning points immediately with purchases.
For every dollar spent, customers earn 1 point, which can be redeemed for various perks, all available at the one-stop Rewards Bazaar.
Additionally, suppose a member prefers something other than discounts. In that case, the mentioned rewards marketplace provides:
The incentives change frequently, encouraging consumers to check back regularly
Sephora now offers Beauty Insider Cash, allowing members to redeem 500 points for $10 off a purchase, making it easy for users to apply points toward a discount. Points will only expire if the user's account has been inactive for 12 months.
For more information, check Sephora's FAQ page.
Let’s start with the basics — point-based loyalty programs, like Sephora's Beauty Insider, are great at keeping customers hooked when they’re well-designed. With Sephora's program, members earn 1 point for every $1 spent. And the more a customer spends, the better the perks they unlock through different tiers, like Sephora VIB and Rouge.
The key to a successful point-based system is transparency – customers need to know exactly how many points they have, how to redeem them, and the value of their rewards.
Programs like Sephora's also incentivize engagement beyond purchases, offering points for non-transactional activities, like writing reviews or attending beauty classes. Such strategy promotes customer retention while encouraging active engagement with the brand.
Now let's go into detail and analyze the loyalty program benefits and its catchy elements.
The Sephora mobile app offers clients a seamless shopping journey, allowing them to browse thousands of beauty products, read reviews, and get personalized recommendations.
A standout feature is the "Virtual Artist," which allows users to try on makeup virtually, helping customers experiment with new looks before purchasing.
💡Follow our mobile app implementation checklist if you want to create an app for your program.
Sephora's Point Multiplier Events, held twice a year, offer shoppers the chance to earn up to 4x points on their purchases, which really speeds up the ability to earn rewards.
These actions often coincide with major sales, giving clients extra value during peak shopping periods. The end result: optimized ROI and CLV.
The Seasonal Savings Events are another standout feature of the program, offering top-tier Rouge members early access and the largest discounts, sometimes reaching up to 20% off.
For Rouge users, the cosmetics brand offers perks that go far beyond the usual discounts and free samples. Sephora hosts exclusive in-store events, where they can meet brand representatives, influencers, and beauty experts. Just imagine how meetings offer access to new products and professional advice, making the experience even more personalized and unforgettable.
For Sephora as a business, these exclusive events generate stronger emotional connections with their most loyal members, leading to increased retention and brand advocacy. Rouge members feel more invested in the brand, which results in higher lifetime value and more frequent purchases.
Additionally, the exclusivity of these experiences often leads to social sharing, as members showcase their VIP status online, creating organic buzz and attracting more people to the program. In short, these perks help Sephora cultivate deeper relationships with its top-tier customers while driving continued business growth.
Another highlight is the custom makeovers available to Rouge shoppers. These one-on-one sessions with Sephora's beauty experts provide tailored advice on makeup techniques and product recommendations.
For beauty admirers, this is like having a personal beauty consultant helping them refine their routine, try new looks, and feel pampered in the process, creating a strong emotional connection with the Sephora brand.
Sephora further enhances the experience with its Masterclasses, available both in-store and online. These classes teach everything from skincare tips to advanced makeup techniques, giving people a chance to learn from the pros.
For Rouge users, these masterclasses often come with additional perks, such as smaller class sizes or contact with top beauty trainers, making the experience feel even more intimate. Rouge users feel unique and part of an exclusive club, further associating Sephora with positive emotions.
"Research has found that almost 75% of what drives customer engagement and loyalty are emotional perks. Now more than ever customers, especially the younger generations, decide to engage with brands based on emotional loyalty drivers." Allegra Stanley, VP of Loyalty at Sephora, source
Sephora’s scheme goes above and beyond by offering personalized experiences and recommendations that make each member feel like the program is tailor-made just for them.
It all starts when a person creates a profile that captures their unique beauty preferences – things like skin type, concerns, and color choices. From there, Sephora uses this info, along with past purchases, to offer product recommendations.
For example, if a member often buys skincare products for sensitive skin, Sephora will highlight similar or complementary items that match their needs.
The company sends recommendations through the website, app, and promotional emails applies, thus applying an omnichannel approach that makes the most out of the user data.
Sephora's Auto-Replenish feature allows buyers to guarantee they never run out of their favorite products. With it, users can schedule automatic deliveries at their preferred frequency, so they don't need to remember to reorder. On top of that, Auto-Replenish orders come with a 5% discount.
Users also have full control, with the ability to pause, modify, or cancel the service anytime, making it a flexible and convenient option for keeping their beauty routine stocked up.
From Sephora's perspective, the Auto-Replenish feature provides a steady stream of repeat sales. Since customers set up their orders to arrive automatically, it helps drive consistent revenue without relying on one-off purchases. It also strengthens customer retention – once users are signed up, they're less likely to shop elsewhere.
On top of that, Sephora gets a clearer view of customer habits, which can inform future recommendations and marketing efforts. With the added flexibility to pause, change, or cancel at any time, customers get convenience, while Sephora benefits from a more loyal, engaged base of frequent shoppers.
From the company perspective, recurring and frictionless sales can drastically increase CLV.
The Sephora Beauty Insider program is an excellent example of how to keep customers engaged with smart, evolving features. Take the Auto-Replenishment Program for favorite products or the Rewards Bazaar – both innovative additions that keep things exciting. The program's strength lies in its tiered perks, like event access, bonus points, and fast shipping. What really makes it stand out is how Sephora keeps adjusting it to match customer needs, adding new perks while keeping favorites like birthday gifts and premium events over the years. It's constantly evolving! Monika Motus, Loyalty Expert (formerly Starbucks, iSpot, and Douglas)
The Sephora Visa® Credit Card offers loyal clients a way to maximize their rewards both in-store and beyond. Cardholders earn 4% back in rewards and 2X Beauty Insider points for every Sephora purchase. Additionally, the card can be used outside Sephora, earning 1% back on non-Sephora purchases, allowing customers to gain even more value from everyday spending.
New cardholders benefit from a 25% discount on their first Sephora purchase within the first 30 days of account approval. Plus, when spending $500 outside Sephora within the first 90 days, they receive an extra $20 reward.
For those who opt for the Sephora Visa Signature Credit Card, additional perks are available, such as roadside assistance, concierge services, and other Visa Signature benefits, further influencing the overall customer experience.
Though credit card rewards expire after 90 days, Beauty Insider points remain valid for 12 months of inactivity, providing a longer window to redeem them. Ultimately, the card is a powerful tool for people who want to get more value from their Sephora purchases while enjoying the added flexibility of using it outside Sephora stores.
Sephora's Beauty Insider program has gained remarkable popularity, with over 34 million members. This impressive success reflects the strategic efforts Sephora has employed to build a highly engaging and convincing program.
Here are some of the most impactful features of Sephora's rewards program, along with insights into how Sephora continues to nurture and maintain their strong allegiance:
Sephora's loyalty spend-based tier system, with its Insider, VIB, and Rouge tiers, is a perfect example of how to engage clients by creating a sense of exclusivity. As people spend more, they unlock better perks, which naturally encourages them to aim for higher tiers.
What makes the system particularly practical is its gamified structure that keeps clients continuously engaged. The challenge of climbing through the tiers, combined with the incentives at each level, helps foster a sense of community among Sephora's members. For Rouge users, the added benefits – such as early product access and larger discounts – enhance the allure, making it even more desirable for consumers to strive for that top tier.
This sense of belonging is further solidified when clients share their Rouge status on social media. Not only does this boost their personal sense of accomplishment, but it also provides Sephora with free marketing and helps spread positive word-of-mouth buzz, reinforcing the program's appeal.
Sephora has designed its perks system to reflect its brand values of luxury and quality. As mentioned above, Beauty Insider users enjoy a wide range of benefits, including elite admission to sales, special in-store celebrations, and limited-edition products. All these experiential rewards reinforce the program’s premium feel and align well with Sephora’s reputation as a high-end beauty retailer.
One of the best features of the Beauty Insider program is how personalized it is. Sephora doesn’t just recommend random products – it tailors suggestions based on each person’s beauty preferences and past purchases, making the shopping experience feel super personal.
Members can fill out a detailed beauty profile, and Sephora uses that information to match them with products that fit their needs.
What takes it up a notch, though, is the machine learning behind the scenes. Sephora’s not just guessing – it’s using advanced algorithms to analyze tons of data, like a customer’s browsing habits, past purchases, and even skin tone. Over time, the system gets smarter, predicting what a member might love with even more accuracy.
This whole approach creates a deeper connection between Sephora and its customers. By making personalized recommendations that feel spot-on, Sephora boosts sell-through and also builds allegiance. Machine learning just makes everything smoother and more relevant, so each shopping trip feels tailored to every individual.
The Sephora Community is like Sephora's own little beauty social network, where members can connect with others who share their passion for makeup, skincare, and all things beauty.
In there, users can ask questions, share tips, post reviews, and even show off their latest looks in the Gallery.
"As we learned more about our clients, we saw the opportunity for beauty lovers to come together, ask questions, post inspirational beauty looks, and get product recommendations, not just from us but for them to share with each other. 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."
Allegra Stanley, VP of Loyalty at Sephora, source
What's remarkable is how the Sephora Beauty Insider scheme ties into the community. Beauty Insiders often head to the community for recommendations on spending their points, whether they're looking for the following must-have product or just trying to make the most of an upcoming sale.
Being part of this beauty-loving community helps Beauty Insiders stay updated on new trends, get tips from real users, and even share their own experiences, making their loyalty journey with Sephora more personal and rewarding.
"Our culture has always been rooted in cultivating diversity, inclusivity, and empowerment in beauty – that comes through in the in-store experience, the product assortment we offer, the classes we host, our loyalty programs, our social communities, etc. I would say it's the sum of the many different touchpoints that serve to teach, excite, and inspire our clients – the total omni-experience at Sephora – that has helped to create that sense of belonging and loyalty."
Emeline Berlind, senior VP of loyalty at Sephora, source
On top of that, Sephora takes its loyalty program to the next level by offering its members beauty classes, adding educational and experiential value. These classes, available both in-person and online, cater to a wide range of beauty interests, from mastering makeup techniques to perfecting skincare routines. Members get personalized advice from Sephora's expert staff, making the experience feel tailored specifically for them.
For Sephora, these classes go beyond customer engagement. They help build stronger connections that keep members returning to Sephora for their beauty needs. Offering both educational value and hands-on experiences, the beauty classes set Sephora apart from competitors and further solidify the brand's reputation as not just a retailer but a trusted looks advisor.
For VIB and Rouge members, the classes often come with extra perks, like smaller, more sessions or one-on-one consultations, which enhance the sense of luxury and exclusivity. The hands-on learning opportunities motivate customers to get the most out of their products and feel more confident in their beauty routines.
The Sephora Squad is a unique influencer program that’s all about authenticity and diversity. Instead of just focusing on influencers with massive followings, Sephora created this program to give a platform to beauty lovers of all kinds. It's within reach no matter if the person is a micro-influencer with a tight-knit community or someone just starting out with a passion for beauty.
With Sephora Squad, the company attracts people with a real and relatable image, and the application process reflects that. When applying, hopefuls gather testimonials from their followers to show how they inspire and connect with their audience.
Once accepted, Squad members get some pretty sweet perks: access to new product launches, paid collaborations with Sephora, professional growth opportunities, and invites to gatherings (meet and greets and others).
It’s a chance for influencers to grow their brand while working closely with Sephora to promote beauty directly to their audience.
And for Sephora, it’s a great opportunity to cater to new markets and communities.
The Sephora Squad is quickly becoming one of the most coveted beauty ambassador programs, attracting a record-breaking 16,000+ applications in 2023 – a 43% increase from 2022 and the highest number of applicants in the program's history!
"The testimonials were a key factor in choosing the final Squad. It was imperative to us that the squad was as authentic as possible, and who better to give input than the people in their communities who have followed their journeys from the start."
Emeline Berlind, senior VP of loyalty at Sephora, source
In 2023, Sephora added a fun new twist to its loyalty program to keep younger shoppers, particularly Gen Z, hooked. They introduced Beauty Insider Challenges, where people can complete fun tasks, like signing up for text alerts or trying Sephora’s Color iQ tool, to earn bonus points.
This gamification, which experts say boosts customer engagement by up to 47%, is aimed at attracting younger consumers, who love interactive experiences.
Sephora's text alerts are a must for clients who want to stay in the loop. Signing up means getting the latest promos, special offers, product drops, and beauty tips sent straight to their phone – no more fear of missing out on those limited-time deals or hot new arrivals. It's an easy way for members to be the first to know about all things beauty.
But here's the deal for Beauty Insider members: Signing up for text alerts can actually help clients earn 10% off on their next purchase. It's a total win-win-win — clients stay up-to-date with everything Sephora while racking up rewards and saving on their next haul. Besides, those alerts help Sephora drive engagement by keeping members constantly connected and encouraging quick action on limited-time offers.
As you can see, it's about making the whole shopping experience more engaging. This move taps right into what younger shoppers want: interactive, rewarding experiences that go beyond the basics.
As Emeline Berlind, Sephora's senior VP of loyalty, mentioned, customers were asking for more gaming elements in the program, and Sephora delivered. With the first challenge set, "Ready, Set, Sephora," shoppers can rack up 500 points by completing tasks, which they can then trade in for Beauty Insider Cash or other unique rewards.
The gamification trend isn't something unique to Sephora. Research shows that 47% of companies using gamified loyalty programs see higher engagement. And it makes sense: nearly 60% of Gen Z and millennials regularly play digital games, so Sephora's approach fits perfectly into their world.
By adding gamification features, Sephora keeps its program fresh, relevant, and appealing to a generation that craves customization, tech-driven experiences, and a little bit of fun while they shop.
Sephora's Beauty Insider program, though popular with millions of loyal members and offering attractive rewards, still has room for improvement. Here are a few aspects of the program that could benefit from enhancements:
While Sephora offers a wide range of rewards, from small samples to high-end products and experiences, the top-tier incentives are often out of stock. People frequently complain about the Rewards Bazaar, where high-value items (requiring 750 points or more) are rarely available.
The lack of availability is particularly disappointing for Sephora's most loyal customers, who save up their points expecting to redeem something special during major sales events.
Other customers have expressed disappointment when, after saving points, they find the rewards they want are sold out, with only charitable donation options left. This issue undermines the trust and excitement associated with Sephora’s loyalty program.
The company should ensure better stock management, particularly during peak season or sales, to meet expectations.
Achieving the Rouge tier in the Beauty Insider program requires spending $1,000 annually, yet many Rouge users feel they don’t receive advantages that justify this high threshold. Truth be told, the incremental benefits over the VIB tier (which requires just $350 in spending) are minimal.
Many Rouge users report feeling like the rewards don’t justify their loyalty, with some stating that the extra benefits – like 20% off during sales and 4x points events – aren’t enough.
Additionally, the Rouge Reward (2,500 points for $100 off) equates to only a 4% return on spending, which feels low compared to the significant investment required to reach Rouge status. Customers have expressed disappointment with Sephora’s inability to offer special perks for this premium tier.
Despite Sephora's efforts to create personalized shopping experiences, many customers feel that the rewards system remains somewhat one-size-fits-all.
Shoppers across different tiers have expressed that the incentives often don't reflect their unique beauty preferences or needs. In a market where personalized marketing is becoming the norm, Sephora uses machine learning and AI to enhance experiences, but expectations are high.
To better meet these demands, Sephora could further refine their rewards system by offering more tailored features and exclusive gifts using individual purchase histories.
Sephora's loyalty program heavily focuses on purchase-based rewards but lacks meaningful engagement between purchases.
There's little follow-up with customers unless they're high-tier members, which leads to a lack of ongoing interaction with a large portion of the customer base.
Sustainability has become a key consideration for many consumers, yet Sephora has been slow to address this within its loyalty program. While the company introduced a recycling initiative in Australia, offering points in partnership with TerraCycle, no similar program exists in other major markets like the U.S.
Competitors like Nordstrom and MAC already offer recycling programs, and consumers who prioritize eco-friendly practices may choose brands that align more closely with their values.
Although Sephora has launched the Clean + Planet Positive line, which features products with sustainable packaging, customers are demanding more.
Expanding recycling programs and increasing the visibility of eco-friendly initiatives would allow Sephora to resonate better with conscious consumers.
💡Read about sustainable loyalty programs amid changing customer expectations.
Sephora’s introduction of Beauty Insider Challenges, aimed at Gen Z, has added a gamified element to the program. While this initiative has been well-received, it primarily appeals to younger, tech-savvy customers and might not engage the entire customer base.
More inclusive gamification elements could help extend this interactive experience to a broader audience, making it more universally appealing.
Sephora's Beauty Insider program proves that a smart balance of valuable rewards and emotional engagement can drive absolute loyalty. It's a classic model that increases repeat purchases and long-term relationships as well as extends customer lifetime value.
Now it's your turn – how can you apply these principles to your own loyalty program?
Think about your current structure: Are you offering enough personalization? Do your rewards create a meaningful connection with your audience?
Take a closer look at your scheme and consider what adjustments could make it more inviting.
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