Sephora Loyalty Program: A Comparison between France and the United States

1. Benefits to Implementing a loyalty program

 When it comes to client retention, a loyalty program has a critical impact on how
probable it is that customers would return and how much they will spend.
 Loyalty to a brand enhances revenues, boosts sales, and enables the long-term
success. It also encourages customers to keep buying from you to reap the
benefits rather than switching to another retailer.
 Customers' lifetime value increases when loyalty programs are implemented.
2. Design characteristic of an effective loyalty program
The following are qualities of a successful yet effective loyalty program's design:
 The value proposition of your loyalty program should entice customers like a
moth to a flame. Customers are motivated by a variety of values, and the customer
base of each organization has a unique blend of these motivators. As a result, the
focus of your program must be on what your customers value.
 Consider identifying and customizing rewards and benefits for different groups of
clients depending on their preferences, actions, and spending levels. A good mix
of loyalty incentive kinds should be utilized.
 Loyalty programs help to build a connection between a business and its
customers. It also encourages customers to keep buying from you to reap the
benefits rather than switching to another competitor.
3. Benefits of the tiered loyalty program
 Allows more customized things for VIP members. Customers appreciate it more
because they will feel appreciated.
 Expiring points frustrate customers and place a significant communication burden
on the company. Long-term clients can preserve their perks if they have levels
rather than merely using points.
 People will be more likely to choose you over the competitors if you offer perks
like free shipping or extended returns with particular tier levels.
 It's advantageous to have a tier-based loyalty program like Sephora's because it
gives customers an experience by giving them early access to new items, early
 entry to promotional events, and exclusive gifts for VIPs. All of these benefits
enhance a customer's sense of accomplishment while going up a tier. As a result,
customers are more engaged.
4. Loyalty Program of France
 While White offers a 10% discount coupon to anyone who asks for it in-store
or online, Black is a middle-level program that requires at least four purchases
per year, and Gold is a premium-level program for customers who spend at
least 1500 Euro per year, it is the highest-level program that offers exclusive
private sales and full-sized birthday gifts chosen by the customer.
 The loyalty program of France offers a three-tier program which is greater in
comparison to the level of tiers offered in the United States. There are more
layers in France's loyalty program, making it easier to move up to the next
level and attracting more customers. Those who have the gold card but
haven't spent at least 700 Euros in the last year will be upgraded to the black
card if they ever spend less than 700 Euros again. Offers a range of bespoke
cosmetic items, as well as exclusive information and an all-access pass to
these.
America’s Loyalty Program
 Starts consumers started with rewards that accrue at a rate of 100 or 500 points
per dollar spent. In addition to special invitations to members-only events and
items, those with the lowest tires in the program also get access to other perks.
For clients who qualify every year by spending $350 (including benefits and
prizes for the lower level as well as delay samples, exclusively monthly gifts), the
premium tier of the U.S. program V.I.B is the highest level.

Customers who are prepared to spend more money are more likely to be loyal, and I
feel that France's loyalty program does an excellent job of cultivating that kind of
relationship. All customers are valued, but those who are top priority are shown the
distinction by delivering advantages and excellent services to those who are loyal.

5. French vs United States Loyalty Program

 Sephora's French premium program caters to customers who spend at least 1500 euros a
year at Sephora stores around the country. As of 2012, Gold cardholders must re-qualify
by spending at least 700 EU to keep their status, and if they fall below that threshold,
they will be issued the black card. To qualify for the V.I.B. (Very Important Beauty
Insider) program in the United States, clients must spend at least $350 on beauty goods
each year.
In the US, I think it's well worth it, but in France, I think it's a little too expensive to be a
part of their reward program. Both programs are only available for a limited time to
inform clients that if they purchase products from Sephora, the company will provide a
customer loyalty program in exchange. Customers' spending can be tracked with specific
requirements on how much they spend each year, and the company can determine
whether to change the program or provide more for customers who spend more.
Customers are more likely to buy from a company if they are engaged in some way.
6. Implementation in the United States
According to my observations, France's premium loyalty program cannot be successfully
applied in the United States, as consumers prefer to spend their money on mass-market
beauty goods rather than high-end items.