Marketing Channel Effectiveness & Budget Allocation

Each adverƟsing channel has different efficiency and cost rates. A brief online study extracted the values
for the average Cost per Click (CPC) and Conversion Rate of each markeƟng channel used by Sephora.
However, one must admit that these are averages and conversion rates can vary substanƟally within
one
source. The below analysis reveals, that Sephora is advised to focus on Facebook and Google AdWords
as
online markeƟng means as their implied cost per conversion is significantly lower than that of TwiƩer

Customer Journey
It is crucial to understand how the customer journey influences current and potenƟal customers. To
succeed with this target audience, the interplay between digital and tradiƟonal channels is important.
Trigger Stage - Shopping at Sephora may result from habitual trigger when the consumer has used up an
old product and needs a new one. At Ɵmes, the trigger could sprout from wanƟng to look great for a
special occasion. The trigger could be to boost one’s self esteem. For instance, consumer is feeling low
and wants to look beƩer to enhance their mood. The trigger could also be impulsive where the
consumer may simply be passing-by a Sephora store.
Consideration & Evaluation Stage - Sephora offers wide range of brands and SKUs to choose from. The
consumer considers the products she is exposed to and has experimented with to narrow down the
opƟons. The inƟmate and relaxed atmosphere at Sephora enables consumers to try a variety of samples
in store. Furthermore, online makeup tutorials and reviews help the consumer evaluate their opƟons by
exposing them to new products in the market. Friends can be great influencers as they share their
experiences with different Sephora products. BeauƟcians can also endorse brands and influence
consumer choices by offering expert advice on beauty products. Besides, Sephora aƩempts to cater to
their online market segment by shipping samples with purchase orders for consumers to try.