Yup. They’ve nailed it.
For ~$50/year, members gain access to unlimited same-day delivery.
Moreover, beauty insiders get free shipping with no minimums required and can sign up for auto-replenishment of their favourite products on a custom preferred timeline.
Here’s why the subscription is compelling.
- Data – 63% of beauty shoppers say running out of product and needing a replacement ASAP would prompt them to seek out same-day delivery.
- Customized delivery – this shows real personalized value.
- Tangible Savings. A 5% discount on all subscription deliveries means consistent tangible savings for members.
- Price-Point … $50/year to solve the #1 problem/desire for the target customer: “product delivery within a matter of hours”, is totally reasonable.
This is yet another use case highlighting a move away from “free points”, to “Fee-4-VIP” loyalty.
For execs wanting to zoom-in further, the Sephora program uses what we call the ‘Amazon Prime Formula’ (the key to any successful paid loyalty/ membership).
⥱ ‘ANCHOR BENEFIT + 2 (or more) complementary benefits’