E-commerce companies’ use of loyalty programs and subscription services has been growing dramatically, especially Costco.

During a recession or demand destruction caused by inflation or stagflation, these types of programs are often the lifeblood of maintaining profitability and, in some cases, company survival.

Beauty retailer Sephora is a good example of a company that has generated a powerful database marketing campaign.

Every company should have or put into place a program like Sephora.

Here are 3 things you should know about the latest e-commerce service they have started…

#1: Expanding its e-service database.

Sephora has an unlimited same-day subscription service for $49.00 per year.

This service has the effect of increasing sales and loyalty and positioning itself against the competition.

New members who sign up for the subscription can make unlimited same-day delivery on their website or app.

They offer a 30-day trial to give potential prospects the confidence to use and like the new service.

#2: This helps Sephora fight off competition.

The retail beauty segment is highly competitive, and Sephora must ensure that its marketing programs keep it one step ahead of the competition.

One of its rivals is Ultra Beauty. Ulta Beauty already has a delivery program, charging $9.95 per delivery, but doesn’t use an app option.

Same-day delivery has no limitations.

However, Sephora can’t provide same-day delivery unless it’s within certain geographic locations, which makes it clear that it isn’t available in every location.

For those not in their geographic area, Sephora will get free shipping.

Sephora has a loyalty program called the “Beauty Insider Loyalty Program.” It offers free shipping for members.

To entice program members to sign up for the new same-day delivery subscription service, generous and enticing extra points are offered.

If you’re interested in creating a subscription or loyalty program, our CDMG ad agency specializes in this, and we’ve done it for many years.

We’d be glad to discuss it with you, explore the options, and determine what it would take to make it a reality.

Or, if you have always had a subscription or loyalty program and it’s not performing as well as you’d like, we would be glad to give you a second opinion.

If you want to learn more about different subscription services, call Michael at 615-933-4647 or email him at [email protected].