Sephora's goal with the "Beauty Insider Challenges" was to revamp their loyalty program to captivate and maintain the attention of Gen Z consumers by incorporating gamification. They aimed to shift from a traditional transaction-based loyalty approach to an experience-driven model that resonates with the digital and interactive inclinations of this younger demographic.
Sephora faced the challenge of refreshing its loyalty program to attract Gen Z, a demographic known for valuing experiences over transactions. The traditional "spend-and-earn" model needed an overhaul to resonate with the digital-savvy and game-oriented behaviors of this generation.
Sephora responded by launching the "Beauty Insider Challenges," an industry-first feature within its Beauty Insider loyalty program. The challenges are designed to engage members with both purchase-related and non-purchase-related tasks, accessible across all membership tiers.