Amidst a “retail apocalypse” where shoppers are abandoning iconic brands for generics and fast fashion, Sephora is thriving due to a steadfast commitment to providing the best customer experience. To create the hallmark personalized in-store experience Sephora shoppers receive online, the beauty retailer turned to Dynamic Yield to personalize product recommendations, optimize digital channels for easy discoverability and craft a cohesive experience across channels. Just six months after implementing Dynamic Yield, Sephora implemented 82 live experiences through the platform with PDP recommendations alone yielding a 6X ROI.
- Quickly surface the right products for each individual user.
- Break free of long development cycles and rapidly implement website changes.
- Guide wayward users back to the path of purchase.
- Optimize the checkout flow for seamless conversion
- Connect online and offline channels to power one cohesive customer journey.
Since the most successful recommendation approach varied by market and KPI, Dynamic Yield’s adaptive recommendations crunched the data and deployed the highest performing strategy in each market, based on users adding items to cart and completing a purchase.
Dynamic Yield’s recommendation engine powered a CTR of more than 4%, ultimately returning direct revenue in excess of $6.50 for every $1 spent with Dynamic Yield. As a result of the massive revenue uplift and development time saved, Sephora now serves recommendations powered by Dynamic Yield to 100% of website traffic.
Depending on website behavior, users were either shown recently viewed items or a sample of Sephora’s most popular products. This strategy paid off, driving more derived pageviews against a control group and 30% add to cart rates for returning visitors across all markets.
Variation 1 performed definitively better in several countries, Variation 2 performed best in Australia and variation performance was dependent on audience segment in some markets. Sephora used the flexibility of Dynamic Yield’s optimization platform to tailor experiences accordingly by manually directing traffic in markets where there was a clear winning variation while relying on automated optimization to deliver the best results in markets where performance was mixed.
The retailer used Dynamic Yield to personalize the page with targeted banners highlighting popular information such as gift cards, popular items and rewards membership info. Incorporating this banner drove more clickthroughs to product and loyalty pages and ultimately, higher engagement from users exposed to this experience.
The Key Takeaway
To achieve true end-to end journey personalization, Sephora is beginning to integrate CRM data with Dynamic Yield. By onboarding this transaction history, Sephora can serve individually tailored online experiences based on past in-store purchases. With unified offline and online data, a shopper will be able to visit Sephora, have fun trying on makeup until she finds exactly the right look, and ultimately receive concierge online experiences with recommendations that match her style.