Have you ever left Sephora with way more products
than you intended to buy when you first stepped
in the door? You’re probably
not the only one. Sephora was named
retailer of the year at the 2018
World Retail Congress. And it seems that people
can’t get enough. Here are some sneaky ways
you might not have noticed that Sephora gets you
to spend more. As soon as you walk into
one of their locations, you’ll notice what makes
Sephora different from the traditional
department stores it competes with. Sephora has nearly all of
their products on display, so customers can try
just about everything. It’s great for
the customers because they can
test stuff out, but it’s equally great
for the company because you’re in
the store for longer, which means you’re more
likely to buy more. A 2015 study found
that the likelihood of purchasing
a product increases with time spent holding and
looking at it in the store. The more time you spend
trying out a product, the more it feels like it’s
already in your possession and you need to purchase it. Sephora also has
kiosks stocked with makeup remover,
tissues and other necessities so customers
can clean up, and, more importantly, so that they can
try more products throughout the store. And if you’re not sure
what to get, Sephora has even developed
special technology to match customers with their
perfect foundation shades. The device, called Color
IQ, scans your skin to assign you
a four-number code, which gives you a curated list of all the foundation shades
from different brands that will best match
your specific skin tone. And if you’re not taking
advantage of the samples, the shelves are also set up
with an eye on your wallet. The most expensive products
are placed on top shelves because they’re
the easiest to reach, while cheaper items are
on the bottom shelves. And, of course, the
checkout line is surrounded with travel-size goodies to
tempt you at the last minute. Krause: So, when
you’re up against the register lines and, you know, you’re kind
of looking at all those mini products, you’ll find
things that are maybe, you know, $5, $10,
depending on what it is. And that can be enticing
for a lot of reasons. Maybe there’s a primer
you really wanna try but you don’t wanna spend
$25 on the full size, so you can just get a
smaller one for 10 bucks. Narrator: But while the
smaller products and their smaller price tags
may seem like a good deal, they’re often not. Take, for example, the
GlamGlow SuperMud mask. The full size costs
a whopping $59. In comparison, the mini
half-ounce jars for $25 seems like a steal. But in reality, the mini
costs $50 per ounce, while the full-size jar comes
out to about $35 per ounce. So if you’re looking
to save money, the larger product is actually
more cost-effective. Another way Sephora gets
customers to spend more is simply by being their
go-to beauty store. They accomplish this by
carrying a diverse array of brands including ones that can’t
be found anywhere else. The company often
collaborates with brands to release
limited-edition items, which not only
draws customers in, but pressures them to
purchase the products. Krause: Sephora might
have that one exclusive item that you can’t get
anywhere else. So it really kind of
draws people in because you never
really know what you’re going
to find there. Narrator: Exclusive
brands and items make it easy to
keep coming back. More than anything,
Sephora’s all about building brand loyalty. Case in point: their
robust rewards program. According to the
Harvard Business Review, reward programs not only
encourage customer loyalty, but can also get new
customers to shop like older, more
profitable customers. And the longer a person
has been a customer, the more profitable
they become to the store and the less they
cost to serve. Sephora’s Beauty Insider
program has three tiers, and anyone can sign up
for the basic level. Members earn a point for
every dollar they spend, as well as perks like
a birthday gift and beauty classes. The highest, most coveted
tier is Rouge, and you have to spend $1,000
in a calendar year to qualify. The exclusive benefits
include significant discounts on all merchandise
during Sephora’s sales and free two-day
shipping year round. Reyes: So, I’ve actually
been a Sephora shopper since about 2014. And only just recently,
this past year, did I become a VIB Rouge. Narrator: Sephora’s exclusive
rewards for Rouge members include sponsored trips
with cosmetic brands to New York City
or Los Angeles, and some members
have even spent more than $35,000 to rack up enough points
to redeem on such trips. But is it worth the $1,000
to reach Rouge status? Reyes: VIB Rouge
has benefits that VIB doesn’t have, like early access to products, like invitations to
Sephora events, facials, whatever. If that’s something you’re
interested in, then work towards it, sure. But if not, VIB is
literally so similar. They’re so similar in
terms of their benefits; I don’t think it’s
worth it to actively try to spend $1,000 a year
to reach that status. Narrator: After all, both
VIB and Rouge members have access to
Sephora’s sales. Sephora definitely makes
it easy to spend more, but finding good deals
isn’t impossible. Krause: Sephora constantly
puts things on clearance, just maybe not at the
forefront of the store. Keep an eye on the website, keep an eye on their
social-media pages, like their Instagram,
their Twitter, see what promotions
are going on, and really just kind of
focus on some of the sales and promotions that they do, because a lot of the
times you can get equally good products for a little bit less money.