Key Takeaways:
In the competitive world of beauty retail, loyalty programs are crucial tools for customer engagement and retention. With more than 45 million members, Sephora’s multitiered Beauty Insider program is widely regarded as one of the more successful loyalty programs in the beauty industry.
Many retailer loyalty programs offer discounts to encourage consumer spending, but Sephora famously limits sitewide promotions to its biannual Beauty Insider sale, where members can save up to 20%, depending on their Beauty Insider status. In August, Sephora hosted its second annual Rouge Celebration, a four-day event exclusively for Rouge, the top tier of Beauty Insider (members who spend at least $1,000 in a calendar year)—without any sitewide discounts. Instead, it rewarded high-value shoppers with exclusives, education-driven experiences, and an incremental points promotion.
“The Rouge Celebration event is about developing the emotional connection and being able to offer our customers these unique-to-Sephora experiences because anyone can offer a discount,” Emmy Berlind, Senior Vice President and General Manager of Loyalty at Sephora, told BeautyMatter in an exclusive interview.
In its first year, Sephora’s Rouge Celebration saw over 300,000 Rouge members shopping during the event. This year, Sephora doubled down on unique experiences, offering exclusive perks like a limited-edition Dagne Dover bag, quadruple points on Sephora Collection items, and expanded in-store experiences in 25 locations. Rouge members were also invited to attend virtual masterclasses with Danessa Myricks Beauty and Paula’s Choice, hosted by Sephora Beauty Directors Myiesha Sewell and David Razzano, in addition to other benefits.
“The combination of brands we’re able to offer, the virtual masterclasses … it’s all about fostering more of a connection and bringing that excitement to our clients,” added Berlind.
The 2025 event was a hit with Rouge shoppers: Sephora reported double-digit YoY sales growth during the event, driven largely by in-store traffic, with average order volume up more than 40% versus last year. The 4x points promotion for Sephora Collection items significantly overperformed, exceeding original forecasts by a triple-digit increase. Rouge credit cardholders were especially engaged, and the Dagne Dover phone sling gift with purchase was a powerful purchasing driver.
“Customers are expecting increasing amounts of personalization,” said Berlind. “It's not just about earning points … It’s important that our loyalty program also allows customers to have special access to extra benefits.”
Sephora’s Loyalty Strategy Playbook
Experiences and unique gift offerings are a core part of the retailer’s loyalty strategy—one that’s especially effective at activating high-value shoppers. While other retailers may lean on discounting, especially as consumers are becoming more price-sensitive, Sephora maintains a disciplined promotional cadence with more experiential rewards. The result is loyalty that feels like membership, not markdowns.
"We're not just offering rewards," Berlind said. "We're creating a community that feels valued and understood."
One of the clearest shifts since Berlind stepped into the role in 2021 is the tighter weave between digital and physical touchpoints. The Rouge Celebration addressed this by offering both online and in-store exclusive experiences that cater to different customer preferences. This approach recognizes that modern consumers don't see online and offline as separate. They expect a unified, convenient shopping experience.
"We try to make sure that the experience feels seamless across both retail and digital," Berlind explained. “This means integrating in-store expertise with digital convenience, allowing customers to research products on the app while in-store or participate in challenges that span both online and offline experiences.”
In 2023, Sephora launched Beauty Insider Challenges, a gamified feature of the Beauty Insider loyalty program that allows members to earn bonus points for completing a series of online and in-store tasks, including using the Sephora app, buying online for in-store pickup, or non-purchase activities like completing a skin routine quiz. The challenges incentivize customers to experience and participate in “the full Sephora experience,” as Berlind put it.
Getting shoppers out of their homes and into their stores enables Sephora’s employees (known as Beauty Advisors) to help shoppers find what they’re looking for and educate them on new products and brands.
“Sometimes it's easier for people to buy online, but it’s also so important to be able to touch and feel and smell the product in stores,” said Berlind. “We try to have both experiences work together.”
Convenience is another focus for Sephora. Ahead of Amazon Prime Week in July, the beauty retailer partnered with Lyft to offer $20 in ride credits, bringing beauty shoppers in New York City, Los Angeles, San Francisco, Chicago, and Seattle to a participating store location.
Berlind said the retailer is constantly seeking ways to make shopping more convenient, from launching Venmo as a payment option to offering same-day delivery and in-store pickup through its partnership with DoorDash.
"Convenience is something that people want," Berlind explained. "We want to make sure that we're making it as convenient as possible for shoppers to be able to access the amazing brands that we have at Sephora; whether that's our partnership with DoorDash or Lyft, it's about making sure our clients can access a Sephora in any which way they want.”
What Sephora Rouge Members Are Buying
Rouge members account for just 6% of the total Beauty Insider member base, yet they significantly over-index on sales. According to Berlind, they’re Sephora’s highest-frequency shoppers: They lean into same-day delivery and buy online, pick up in store, and they “participate in everything more than the average shopper,” often adopting new features first.
“When we launched our Beauty Insider Challenges, [Rouge members] participated at the highest rate,” Berlind said. “They’re really into beauty and excited to try new things, new brands, and new benefits—and to get the most value from their Sephora experience.”
Rouge also leads in Birthday Gift redemptions and represents a large share of Sephora credit card holders. Category-wise, their interests mirror broader market trends: Fragrance is a standout, but Rouge over-indexes across most categories and eagerly tests new brand arrivals.
“We’re going to see a lot of Rouge members buying rhode,” Berlind noted. “They’re excited to try things out and expand their beauty shelves.”
For Berlind, loyalty is about more than just numbers. "It's about the community of beauty enthusiasts that are connected as part of the program," she said, capturing the emotional core of Sephora's approach.
The Future of Sephora’s Beauty Insider Program
While Sephora’s Rouge Celebration skipped sitewide discounts, the retailer did add a new cash-like perk for top-tier members: 1,000 points for $20 off.
“That was something we heard directly from Rouge members—they wanted the ability to use more points for a greater amount off,” said Berlind. “It’s been a very successful benefit since we launched it this year.”
Sephora reported strong engagement with the new redemption option and continued momentum around its biannual Beauty Insider sales events. “Awareness of the sales keeps growing, and participation follows,” Berlind added. “We’re seeing healthy engagement across the program.”
Looking ahead, Sephora will roll out new Beauty Insider Challenges through the rest of the year, testing fresh task mixes to keep participation high, with plans to maintain that cadence into next year.
Earlier this year, the retailer also partnered with the Golden State Valkyries, offering game tickets in the Rewards Bazaar for points—a redemption that proved popular. Shoppers can expect more of these experiential, partner-led rewards to surface across different categories.
“We’re always asking how to improve the program and keep people engaged,” Berlind said. “Our priority is making sure clients feel real value from the points they earn, and that they can use those points in more ways.”
As beauty retail continues to evolve, Sephora's approach offers a blueprint for creating a loyalty program that goes beyond points and discounts. It's about building a community, offering unique experiences, and making customers feel excited to shop at Sephora—however they want to shop at Sephora.
"We're continually looking to innovate and keep things fresh and exciting for our members," Berlind concluded, "To make them feel like they are being seen and are valued by us. We try to then offer them value and convenience back."
