Sephora & Lyft Partnership: Omnichannel Genius Or Well-Spun Marketing? | Fast Five Shorts
Sephora offers $20 Lyft credits to drive customers to stores during Prime Day week. Our hosts analyze whether this "delivered to beauty" campaign represents innovative omnichannel thinking or just smart marketing spin that luxury retailers have done for decades. Sponsored by the A&M Consumer and Retail Group, Simbe, Mirakl, and Ocampo Capital.
📌 Sephora's Prime Day counter-strategy
📌 Historical context of luxury retail car services
📌 Target audience and marketing effectiveness
📌 Sustainability of the approach
For the full episode head here: https://youtu.be/IHX4xxVvFJs
#sephora #lyft #luxuryretail #primeday #marketingstrategy #beautyretail
This podcast uses the following third-party services for analysis:
Podcorn - https://podcorn.com/privacy
Transcript
Sephora taps Lyft to deliver customers to its stores according to Retail Dive.
Speaker A:While several retailers are promising major discounts and speedy delivery during their July sales events, Sephora is flipping the script by delivering shoppers themselves to its retail locations for in store guidance and special pricing.
Speaker A:Sephora and Lyft Media have partnered on a promotion to literally drive potential beauty customers to a handful of its freestanding locations between July 7 and July 10, right amid all the Prime Day festivities this week.
Speaker A:Promoted as quote delivered to Beauty, the four day event provides customers with a 20 credit for one way rides on Lyft to a participating Sephora location.
Speaker A:There they will receive in store guidance and discounts of $10 on any purchase over $50.
Speaker A:Select Sephora stores in New York City, Los Angeles, San Francisco, Chicago and Seattle are participating in the promotion.
Speaker A:And do you think Sephora and Lyft's partnership is omnichannel genius amid Prime Day, or is it more just good marketing spin?
Speaker B:I think this is a great marketing campaign and that's what you have to look at this as.
Speaker B:I don't think this is like a future pilot where Sephora starts bringing people to their stores and offering car service, but I do think that it's a worthwhile test and investment.
Speaker B:I think it's a way to provide people a luxury experience at a price point that, you know, it's a $28 bottle of lotion, maybe that's what they buy.
Speaker B:Once they get to Sephora, it still gives them that white glove service that they don't typically get from a mass retailer like a Sephora.
Speaker B:So I think it's a really cool way to establish some brand loyalty, get some advocacy and some media attention and some social media posts from people who will most definitely share this experience online.
Speaker B:But I do not think that it's something that we'll see go beyond like, like this is, this is all coming from the marketing funding bucket.
Speaker B:This is not coming from like new store innovation, money or R and D. That's my perspective.
Speaker A:Yeah, it's not long term strategically differentiating with the coming throes of E commerce.
Speaker A:That's.
Speaker A:That's what you're telling me?
Speaker B:No, nor do I think this is like a long term play.
Speaker B:I think this is going to be an idea until other retailers start doing it and then it doesn't.
Speaker B:It's not cool and, and innovative anymore.
Speaker A:Yeah.
Speaker A:No good.
Speaker A:I'm surprised.
Speaker A:I'm surprised we agree on this one.
Speaker A:Yeah, I was not, I was kind of wondering if you were going to take that approach.
Speaker A:I, I 100 agree.
Speaker A:I don't think this is anything new.
Speaker A:I can remember you.
Speaker A:I don't think I've ever told you this.
Speaker A: I can Remember back in: Speaker A:So, like, this is, this is not.
Speaker A:Yeah.
Speaker A:In fact, I'm.
Speaker B:Luxury retailers have been doing this for years.
Speaker B:Like, I mean, Neiman's, Bergdorf, like, they'll send a car for their good customers.
Speaker B:Like, like you always say the casino model.
Speaker B:Like, we'll take you wherever you want to go.
Speaker B:You're going to come spend money, go for it.
Speaker B:Yeah, right.
Speaker B:But it's continue.
Speaker A:It's not going to say.
Speaker A:I mean, the point is it's not going to stave off the Prime Day drain in any way, shape or form, especially when you're just doing like five cities.
Speaker A:But it does make a compelling headline of like the omnichannel strategy when you pitch it in the media that way.
Speaker A:So kudos to the Sephora marketing team for getting that hook and getting people to bite on it more so than they would if it was just the traditional things like you were just describing.
Speaker A:Right?
Speaker B:Yeah.
Speaker B:Yeah.
Speaker B:I think it's brilliant.
Speaker B:You look at their target audience.
Speaker B:I mean, you have teens that don't have licenses that need to get into the, you know, get into the store and giving them the opportunity to spend a bunch of money.
Speaker B:Like, you'll, you'll make your, you'll make your marketing impressions, that's for sure.
Speaker B:Like, I think this is a very worthwhile marketing investment.
Speaker B:But, yes.
Speaker B:Not, not the strategy that's going to help them take off.
Speaker A:I just laugh at our retail media peers that pick up these sound bites that the PR teams are throwing them.
Speaker A:Like, oh, it's, you know, an omnichannel strategy to combat Prime Day.
Speaker A:Like, come on.
