Sephora Loyalty Programs: France and USA
Case Study
Introduction:
This case study report focuses on Sephora’s loyalty programs in the United States and
France. The United States loyalty program, Sephora Beauty Insider, launched in 2007.
Two years later, Sephora introduced V.I.B. to the U.S., which is a loyalty program that is
available to customers who spend at least $350 per year. Sephora’s French loyalty
program started in 2003 and consists of three levels. The White Card is offered to any
customer who requests the card and offers a 10 percent discount after four purchases
are made. After four purchases or spending 150€ within a year, customers then gain
access to the Black Card. In addition to the benefits offered by the White card,
customers with a Black Card are given access to personalized rewards. The highest
rewards level is the Gold Card which is made available to customers who spend at least
1500€ a year. At this level, customers gain access to private sales and receive even
more customized rewards.1
Question #1:
Identify the benefits for a company to implement a loyalty program.
Loyalty programs (a program set up to reward customers with incentives such as
discounts on purchases, free food, gifts, or even cruises or trips in return for their
repeated business) encourage customers to purchase items from a company more
