Sephora is launching a new credit card program for their loyal customers. This is in addition to the beauty retailer’s Beauty Insider loyalty program. There will be three card options for customers that include a Sephora credit card, a Sephora Visa, and a Sephora Visa Signature card.
According to Business Journal, the popular chain has partnered with Alliance Data to make it easier for shoppers to shop while collecting points and benefits with each purchase. The Sephora Credit Card and Sephora Visa Credit Card will be available in select stores and will allow customers to benefit from Beauty Insider rewards.
Andrea Zaretsky, Sephora’s senior vice president of CRM and loyalty, said that the credit cards are the next natural step in their loyalty program, as it adds more value that clients can use not only within their stores but elsewhere, too. Zaretsky said, "We want to use that data to anticipate our client's needs and understand them better so we can deliver against their needs and overdeliver against their expectations," according to WWD.
Unfortunately, there are no details available on what those rewards will be, but the Sephora Visa Signature Card will also be included in the program, too. While there are many benefits to having a store card, critics argue that most of them come with high-interest rates.
For example, Ulta, Sephora’s number one competitor in the makeup business, also offers a credit card. However, their interest rate can go up to 28.24 percent, depending on the card. Ulta began offering their credit card to customers back in 2016. Their ‘Ultimate’ loyalty program offers shoppers points for purchases, while their MasterCard can be used anywhere that MasterCard is accepted.
The credit card is just one of several new changes that Sephora has made in order to keep up with the competition and make it more attractive for shoppers to stay loyal to the brand. Back in October it was reported that Sephora would start offering a 2-day shipping subscription service similar to Amazon Prime. The retailer’s Flash subscription now offers a two-day shipping option with a yearly charge of $15. Three-day shipping is just at $5.95.
Sephora also plans on opening up 35 new stores in the U.S. by the end of 2019.