News: Sephora builds sales with loyalty data

WM Circle Logo

By: RickFerguson |

Posted on February 25, 2016

We�re big fans of Alex Samuely�s reporting over at Mobile Commerce Daily, so we were pleased to see her latest report from the eTail West 2016 conference, in which she reveals US-based beauty retailer Sephora�s success at leveraging loyalty programme data to drive sales and revenue. Her key takeaway: Sephora�s commitment to mining customer data for actionable insight sets the retailer apart from the competition.

Here�s the money quote from Angel Singh, director of product analytics and optimization at Sephora, who spoke at the eTail West conference:

�[Data] is kind of a currency to us. We have a lot of data on our clients and we�re trying to figure out how to leverage it.�

Acording to Samuely, the retailer is on the leading edge of customer-centric marketing: breaking down data siloes to understand the customer journey across web, mobile, and in-store experiences; deploying data-visualisation tools to help disparate business units better leverage customer insight; and leveraging loyalty programme data to segment and target key customer groups. Money quote #2:

�Sephora has started to segment customers belonging to the Beauty Insider programme, which has proven to be effective. Loyal clients generally make up 20% of its core customer base, and spend the most. They are also the most active on social media.�

The bullet point: Given the omni-channel, mobile-enabled, customer-centric future of retail, Sephora�s data efforts aren�t simply a luxury for today�s retailer: they�re essential. Note especially Sephora�s commitment to its loyalty programme data. By making transaction data from its most valuable customers the centrepiece of its data efforts, Sephora ensures that its efforts remain closely tied to its ultimate goal: building profitable, sustainable, and reciprocal relationships with its best customers. Practiced well, loyalty marketing can be a thing of beauty.

Read the full article here.

More Info: