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Sephora is a company known for its vibrant stores that encourage trial and experimentation of its beauty products. The website’s explosive growth speaks to its success; by 2010 it had grown to be the largest online prestige beauty website capturing 30% of the US market. From 2006-2010, the e-commerce site experienced a minimum of 30% growth in visits each year over the previous year. In 2010 the site was accessed by 3 million unique visitors each month, garnering 3.4 million page views per day. Adding the ability for users to rate and review Sephora products enhanced the user experience and drove users to the site. Just as it had been in the physical stores with cast members assisting shoppers in trying products, customer interaction with the company, in the form of posting questions and reviews, played an important role in the overall online experience. By recognizing that key function in the relationship, Sephora maximized the website’s usefulness and propelled its growth.
The development of the Beauty Insider customer loyalty program has been another key element to Sephora’s digital success. The company employed a bold strategy to offer perks, rather than discounts, in exchange for a customer’s email address, and within 3 years Sephora had 15M customers signed up for the loyalty program. It is easy to join, offers consumers quick rewards, and Sephora uses the program to track its users’ purchases and patterns. The success can partly be attributed to the cast members who really believe in the program and never make a sale without offering to sign a buyer up to be a Beauty Insider. Getting those frontline employees to understand the value of that CRM system and support it with such enthusiasm drives the effectiveness as the more customers who participate, the more purchasing data Sephora has from which to draw conclusions. In

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