Sephora Loyalty Program

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As was mentioned before, Sephora offers a loyalty program for their customers in order to keep them loyal to the company. However, other retailers have the same types of programs, which are meant to achieve the same goal. Ulta Beauty gets most of their revenues through the loyalty programs. “Over 80 percent of our sales go through our ULTAmate Rewards loyalty program, and we’ve got 15 million members. (From its entire loyalty efforts), sales per loyalty member increased about six percent in 2014, driven by both higher purchase frequency and higher spend per transaction” (MacArthur, 2015). Since Sephora and Ulta are direct competitors, they sell exactly the same products, same brands and at the same price. So, the question arises: why do some customers prefer one royalty program over another? Sephora’s VIB program gives the customer 1 point for every dollar spent, but so does ULTAmate program. Most of the people choose Sephora’s program simply because of the environment. Sephora stores give customers a feeling of being special and valued. Store design has a royal vibe, which…show more content…
Sephora is working on one of the biggest complaint customers had: lack of ethnic diversity in Sephora Collection products. The company is coming up with more products that will fit all of the skin tones and undertones. Also, several years ago, Sephora’s main target market was wealthy women from 30 to 50 years of age. However, with growth of YouTube and teenagers growing up faster than ever, Sephora should consider targeting girls and women. By expanding their market, they will be able to produce more revenue. Men’s skin and hair care, fragrance products should be available in all of the Sephora locations. It will increase sales, especially during holiday seasons, when people are searching for presents. If customers will be able to purchase gifts for different genders and ages at the same store, they will be more attracted to that particular

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