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.