As of Wednesday, Sephora now offers its Beauty Insider loyalty program members the chance to earn more points through gamified experiences.
The new Beauty Insider feature, called “Beauty Insider Challenges,” is a first-of-its-kind approach for the beauty retailer. Challenges comprise both tasks that require purchases and tasks that do not, and they’re available to all membership tiers. The first Challenge, called “Ready, Set, Sephora,” is comprised of four tasks, including checking out with buy-online, pick-up in-store; signing up for Sephora text alerts; adding samples at online checkout; and trying Sephora’s in-store shade-matching tool, Color iQ. All Beauty Insider members can earn 100 points for each completed task and an additional 100 bonus points for completing the entire Challenge. Completing the full Challenge allows members to earn 500 points that can be redeemed for Beauty Insider Cash, which customers can redeem for $10 off their next purchase, or for other rewards. Beauty Insiders must complete the first Challenge by December 22 of this year to receive all 500 points and cash in. Beauty Insider is free to join, and customers automatically join the VIB and Rouge tiers after spending $350 and $1,000, respectively. Beauty Insiders receive 1 point for every $1 spent, but all tiers can receive more points during seasonal points multiplier sales events.
“Our goal with this new feature is to continue to raise awareness of all the fun and exciting offerings we have, both in-store and online, and reward our community for their continued engagement and loyalty to Sephora,” said Emeline Berlind, svp and gm of loyalty at Sephora. “[Our customers] couldn’t have been clearer when they told us they want gaming elements included in our loyalty program to create more ways to connect with Sephora. We also know that engaging loyalty benefits, exclusive access and perks are important to Gen Z.”
Beauty Insiders can access the Challenge from their account page on Sephora.com or under the “Beauty Insider Challenges” section on the Sephora Mobile app. From there, they can click on the Challenge to participate, and a prompt to join will appear. Sephora also created a tracking system so members can monitor their ongoing and completed Challenges.
Sephora’s aim to appeal to Gen Z is noteworthy, given that the generation, defined as people born between 1997-2012, makes up 20.3% of the U.S. population. And, based on the 2021 Gartner Consumer Values and Lifestyle Survey, almost 60% of Gen Z and millennials play video and other electronic games at least once a week. Furthermore, according to CRM agency Snipp, companies that incorporate gamification into their customer engagement strategies see a 47% rise in engagement, a 22% rise in brand loyalty and a 15% rise in brand awareness.
“Loyalty programs over the last 100 years have been about members spending $1 to earn a [single] point. But there is so much more opportunity than that,” said Zsuzsa Kecsmar, co-founder and chief strategy officer at loyalty management software company Antavo, in a recent interview about other next-gen approaches to loyalty.
Sephora has routinely updated its loyalty program since 2018, when it introduced more redeemable products, altered its points system and increased reward options. Then, in 2020, Sephora began offering monetary incentives to consumers by allowing them to redeem $10 off a purchase for 500 points or donate the $10 to a selection of charities. Berlind said the Beauty Insider program has 34 million members, a 30% increase since 2020, when Sephora told Glossy that its membership figure was approximately 25 million people. LVMH, which owns Sephora, reported in its second quarter and half-year earnings in July that Sephora’s sales grew in nearly every market and that its margins also improved.
“The program allows our Beauty Insider members to discover the many things that Sephora offers to make their shopping more convenient, helpful and rewarding. We want to be able to keep our program offerings fresh and encourage participation and interaction,” said Berlind.