The Best Example of an Extra Points Event: Sephora

August 4, 2015
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This week is Sephora’s “Beauty Insider Appreciation Week.” If you don’t know about the event just ask your wife, daughter, sister, or anyone who is into makeup. They will tell you all about it. The event is a huge deal to VIB members and is one of the best examples of a “points week” I have seen.

In this post I will go over why I like Sephora's appreciation week from the customer’s perspective as well as from Sephora’s perspective. An extra points event is a great way to boost program engagement and encourage shoppers to spend points.

 

What is an Extra Points Event?

An extra points event is a way to encourage people to interact with your loyalty program during a specific time period. You can either let people earn extra points or have points be worth more during the event. You can also do a combination of the two like Sephora has done with Beauty Insider Appreciation Week.

extra points event double win for customers

This extra points event could be a day, a weekend, a week, or more. The duration is completely up to you, but some work better than others. If you are encouraging spending you will want to keep it short like a weekend to make the event seem rare. If you are encouraging earning you will want to give your customers enough time to take advantage, a week is a good time frame for this.

extra points event work best

In my personal opinion extra points events work best when they allow you to earn more and spend more. This creates a ton of buzz around your program and leads to more engagement. I would also suggest you have the event be at least a weekend and no more than a week.

 

Sephora’s Beauty Insider Week

Now that you know a little more about extra points events we can take a look at what makes Sephora’s so effective. I will start with looking at what makes it great for the customer, and then move into why I like the event from Sephora’s perspective. You can also take a look at our Sephora loyalty case study to learn more.

 

Sephora’s Appreciation Week (Customer Perspective)

There are a few things that make this extra points event amazing for a Sephora customer. I will break each of these into 3 sections.

Accelerated Point Earning

During the Beauty Insider week Sephora will be allowing customers to earn points at an accelerated rate. This is great news for customers who are already hooked on the program. The accelerated rate makes each dollar they spend go further!

extra points event accelerated earnings

Sephora even uses the tiers of their program to give better rates to different member levels. The top tier (Rouge) gets 4x the points and regular members get 2x the points. The accelerated point earning gets customers excited to spend (also good for the company) and the tiers make the customer want to strive for rouge.

Bigger and Better Rewards

Usually Sephora only has a few products that can be purchased with points (around 10-15). These rewards range from 100 points to 500 points and are mostly composed of small gifts like a single lipstick or a moisturizer.

extra points event Sephora rewards

However during this points event Sephora will be offering HUGE rewards for your points! Sephora will be offering extremely valuable gifts to members in exchange for points. These gifts will be in the 2,000 to 10,000 point range.

extra points event Sephora epic rewards

These bigger and better rewards are sure to get people excited and spending points. Sephora has made rewards during the Beauty Insider Appreciation week epic!

Exclusive Rewards for ROUGE

If you didn’t already know “Rouge” is the top tier of Sephora’s loyalty program and is reserved for shoppers who spend more than 1,000 in a calendar year. It is one of the reasons Sephora’s loyalty program is so successful.

extra points event Sephora tiers

This appreciation week treats Rouge members with the exclusivity they have earned. The top tier members will get: mini-makeovers, a closed door shopping experience, and a limited edition bag filled with samples. This is a fantastic example of creating exclusivity in a loyalty program and an effective use of a tiered loyalty program.

 

Sephora’s Appreciation Week (Company Perspective)

It is easy to see why Sephora customers will love this week, but lets look at it from Sephora’s perspective. There are many reasons to like an extra points event from a loyalty strategy perspective. I will detail those below but they are also covered in our VIB case study.

Encourages Spending

When a company offers accelerated points it encourages customers to spend more and increases average order values. Shoppers view their dollar as going further during the event so they are inclined to spend more.

extra points event dollars going further

An increase in spending is obviously a good thing for any company but it also means you have extra liability on your statements in the form of additional points. This is why it is often a good idea to combine point acceleration with a strong motivator to spend points at the end of your event.

Sephora has done a great job encouraging more spending with accelerated point earning, and point spending with amazing rewards. Let’s talk more about offering those rewards.

Clears Point Liabilities

Unspent points represent a liability on your books. They are an expense that has yet to be incurred and for big companies like Sephora that liability can become very large if shoppers are not spending their points.

extra points event liability of points

All the VIB members I know love to hold on to their points. When I ask them why they all respond with something similar to this “the more points I have the more I feel I am involved with the program.”

This likely meant that a lot of members were holding points, and this extra points event gives Sephora a great opportunity to clear outstanding point balances with special gifts. I know my girlfriend will be spending points this week!

Provides an Amazing Marketing Opportunity

The Beauty Insider Appreciation week provides Sephora with an amazing opportunity! The special event allows them to create excitement that draws attention to both their store and the loyalty program.

They have been promoting the event on their homepage, in store, and through email marketing (which pairs amazing with loyalty marketing). The buzz the event is creating is amazing and the email marketing they have done is superb.

extra points event sephora event email

Sephora has promoted in all the right places to make the loyalty event a success. You can learn how to promote a loyalty program with our guide “5 Places You Need to Promote a Program.”

 

Sephora’s Extra Points Event

Sephora’s Beauty Insider Appreciation Week seems like it will be a huge success for the Beauty Insider loyalty program. The event is a win win for both Sephora and their customers.

I have seen first hand just how excited members are for this event and recommend you try running a similar extra points event for yourself.