Sephora Confidential - mCommerce Summit

MOBILE PAYMENTS
AS LOYALTY STRATEGY
Johnna Marcus
SEPHORA INNOVATION LAB
@Sephora @ johnnasmarcus
You’ve probably
seen our Stores
Over 325 stores in North America
+1,800 stores worldwide
And are (or know) 1 of our
+13M Beauty Insiders
Digital is in our DNA
First: beauty retailer website in 1999
Now: #1 Prestige Beauty Store in the World
First: Mobile Web
& App 2010
Now: Innovating in Loyalty,
Content Marketing & Local
S E P H O R A H A S A LWAY S B E E N I N N O VAT I V E
OUR TRACK RECORD PROVES IT
Launch of Beauty Talk
& Mobile debut
2010
Sephora.com 2.0
& Loyalty Passbook
2012
2011
Sephora for iPad, Meatpacking
opens mPOS checkout
Beauty Board debuts & Apple Pay
in app Content in commerce
2014
2013
Color IQ & Skincare IQ
& Android app launch
MAKING INNOVATION
PROGRAMMATIC
I N N O VAT I O N L A B T E A M
MANIFESTO
Think BIG.
Take RISKS.
Test FAST.
Rapidly ITERATE.
OUR SAN FRANCISCO LAB
LOCATED IN DOGPATCH
OUR 4 KEY AREAS OF FOCUS
1
2
3
4
INSPIRE CULTURE
Create momentum
and foster an
innovation culture
NURTURE
STRATEGIC
ALLIANCES
Partner with media
& tech leaders
DRIVE FUTURE
VISION
Drive strategic
visioning across key
initiatives
TEST NEW
TECHNOLOGIES
Identify and prototype
future innovations
1
I N S P I R E I N N O VAT I O N C U LT U R E
Sephora’s employees are the
source of our Digital DNA &
our culture of Innovation.
Foster & grow these
capabilities
• “Think Tank” leadership
program
• Hackathons
• Idea Central
2
N U RT U R E S T R AT E G I C A L I A N C E S
Partnerships with key
technology leaders – be there
first when it matters to her:
• Passbook: Launch partner,
1st retailer for gift card and
loyalty
• Sephora Shares: Exclusive
retail partnership with
iTunes
• Apple Pay: Launch partner
3
DRIVE FUTURE VISION
Collaborate across Sephora to
define the future vision –
• Inform strategy
• Refine roadmap
• Prioritize innovation pilots
Discover
Learn
Buy
Connect
4
TEST NEW TECHNOLOGY PROJECTS
Test new technology projects:
• Test & learn
• Near term disruptors & farfuture concepts
• Test in live environments –
stores, online/mobile, etc.
4
PROJECTS…PREVIEW
POCKET CONTOUR CLASS
A custom contouring tutorial designed for
your mobile phone that…
•
Identifies your unique face shape
•
Gives you step by step instructions how
to contour
•
Shows you where to apply makeup on your
own face with placement that is customized
for your face shape
•
Shows what product format to use and why
•
Emails you a link to your saved steps
afterward
4
PROJECTS…PREVIEW
AUGMENTED REALITY
Augmented reality built into the Sephora app
that…
• Clients can scan brand founder faces to
watch exclusive videos
• 1-2 min marketing videos - hover
over the image and play
• Signage prompts client to use her
personal mobile device to “scan to
watch”
4
PROJECTS…PREVIEW
BEACONS
Location-targeted messages
that allow Sephora to…
•
Send her messages that are
relevant to the specific store
experience
•
Encourages her to engage with
the Sephora to Go iPhone app to
assist with her in store shopping
•
BI/VIB/Rouge, Birthday, Basket,
Services
CASE STUDY: APPLE PAY
Apple Pay Launch | October 2014
We know…Sephora clients love Innovation
•
She loves Innovations that make her life easier
• +4M Sephora to Go app users
• She loves mobile to shop online & in store
• She’s already using her phone at cash wrap –Beauty Insider loyalty
card & gift card
•
She loves using her phone to pay in other retail environments
• Mobile payments are 14% of Starbucks transactions
We know…Beauty Insider is the
“Omnichannel Glue”
Omnichannel Retail
Omnichannel Loyalty
Omnichannel Payments
Sephora
Mobile
Payments
Stores
On the Go
In App
Sephora
Mobile
Payments
Online
In Store
In Store
We K n o w … S h e w i l l l o v e A p p l e P a y
Improve ease and speed of client
check out experience both in stores
and on mobile app.
“Good job on bringing Apple Pay to
your stores Sephora! Very excited to
hear you’re on the edge of
innovation in technology as much as
you are in makeup.”
Apple Pay | Launch
•
•
•
•
October 2014: Launched Apple Pay
in Bay Area & Manhattan stores for
Holiday 2014
October 2014: Launched Apple Pay
in Sephora to Go for iPhone app
Q1: Rolled out to all US Sephora
Stores Q1 2015
Q2: Marketing rollout in stores
Apple Pay | Results & Learnings
•
•
Clients who have adopted Apple Pay love the experience and are
excited that Apple Pay is available at Sephora
Education & Awareness are critical
• Cast members need to be trained to answer questions
• Clients need signage to know Apple Pay is a payment option at
Sephora
•
Adoption takes time
• In store is not the time for set up
• Need multiple exposures to try it & learn which retailers accept