Sephora’s Beauty Insider Benefits
Posted: Sun Jan 19, 2025 5:12 am
It goes way beyond just sorting people by age or location, looking at how customers actually behave and what they care about.
Example: Sephora
Sephora's Beauty Insider program uses AI to analyze behavior from their massive 34-million-member base, looking at everything from what people buy to how they shop in stores.
In fact, they attribute 80% of transactions to program members, who were grouped with AI.
They are focusing on how customers engage with various products and price points. For instance, their AI can spot customers who splurge on skincare but hunt for makeup deals or track which samples actually lead to purchases.
What I find particularly clever is their tiered approach with Insider (free), VIB (spending $350+ annually), and Rouge ($1,000+).
Members earn points for purchases, with rewards to redeem. VIBs get exclusive events, while Rouges enjoy additional perks like free shipping and early access to sales.
Source
This kind of structure is perfect for delivering costa rica phone number material personalized experiences based on how much people spend and what they like.
2. Predictive Analytics
Machine learning algorithms can predict future customer actions based on historical data patterns.
The AI analyzes past purchase behaviors, browsing habits, and engagement metrics to forecast buying intentions, enabling brands to engage customers proactively before they make a purchase decision.
Example: Amazon
Amazon leverages AI for predictive analytics to optimize inventory placement and improve delivery efficiency.
Example: Sephora
Sephora's Beauty Insider program uses AI to analyze behavior from their massive 34-million-member base, looking at everything from what people buy to how they shop in stores.
In fact, they attribute 80% of transactions to program members, who were grouped with AI.
They are focusing on how customers engage with various products and price points. For instance, their AI can spot customers who splurge on skincare but hunt for makeup deals or track which samples actually lead to purchases.
What I find particularly clever is their tiered approach with Insider (free), VIB (spending $350+ annually), and Rouge ($1,000+).
Members earn points for purchases, with rewards to redeem. VIBs get exclusive events, while Rouges enjoy additional perks like free shipping and early access to sales.
Source
This kind of structure is perfect for delivering costa rica phone number material personalized experiences based on how much people spend and what they like.
2. Predictive Analytics
Machine learning algorithms can predict future customer actions based on historical data patterns.
The AI analyzes past purchase behaviors, browsing habits, and engagement metrics to forecast buying intentions, enabling brands to engage customers proactively before they make a purchase decision.
Example: Amazon
Amazon leverages AI for predictive analytics to optimize inventory placement and improve delivery efficiency.