Sephora Case Study

CASE STUDY
Sephora Digital SEA

Personalizes Beauty
Iconic brand powers 82 live experiences
with Dynamic Yield, achieving 6x ROI
Summary
Amidst a “retail apocalypse” where shoppers are abandoning
iconic brands for generics and fast fashion, Sephora SEA is
thriving due to a steadfast commitment to providing the best
customer experience. To create the hallmark personalized
in-store experience Sephora SEA 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 deploying Dynamic Yield,
Sephora SEA implemented 82 live experiences through the
platform with PDP recommendations alone yielding a 6X ROI.
Results
82 6X
Live Experiences ROI
powered by Dynamic Yield from PDP Recommendations
“With Dynamic Yield, Sephora SEA customers can

seamlessly find the right products for their beauty needs.
Personalisation is at the core of our eCommerce strategy
and partnering with Dynamic Yield allows us to craft truly
customised shopping experiences across all touch points.”
Alexis Horowtiz-Burdick, Managing Director

Challenge
By manically focusing on always doing the right thing for the customer, Sephora SEA has
amassed millions of passionate customers who consistently turn to the retailer to look their best.
Sephora SEA is a true personalization pioneer, crafting a plethora of individualized in-store

experiences to help every shopper feel welcome and find exactly the right product for her.
To craft online and mobile experiences that capture the magic and convenience of a Sephora
SEA store, the beauty retailer required a solution to:
• 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
That’s when they turned to Dynamic Yield.
Executions
1. Served “no search” result recommendations to move users back into

purchase funnel
When a user searches a product page and sees no results, she is likely to leave the
website without making a purchase, falling right out from the middle of the conversion
funnel. To avoid this scenario, Sephora SEA used Dynamic Yield to populate a “no
search result” with relevant recommendations based on user context.
Depending on website behavior, users were either shown recently viewed items or a
sample of Sephora SEA’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.
[email protected]
2. Deployed personalized PDP recommendations powered by machine learning.
To help users seamlessly find the most relevant products, Sephora SEA focused on
optimizing PDPs across eight markets in Asia. In each country, users were shown
recommendations based on three distinct strategies: similar items, bought together
and automatic.
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 SEA now
serves recommendations powered by Dynamic Yield to 100% of website traffic!
Bought Together
recommendation strategy
Similar Products
Personalized
[email protected]
3. Optimized checkout messaging to drive loyalty sign-ups
To boost membership in the “Beauty Insider” program, Sephora SEA tested two
variations of copy (only served to users who were not already members) testing both
sign-ups and revenue per session.
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 SEA 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.
Variation A Variation B
4. Created unique experience for visitors on store location page
While the store location page contains essential information for shoppers, it can often be
a “dead-end” page. To decrease bounce rate from customers looking for store location,
Sephora SEA reimagined the page as a step in the online buyer journey.
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.
[email protected]
Key Takeaways
For decades, companies have framed the customer experience in terms of touchpoints-
the individual transactions where customers engage with a business. But as channels
disappear, savvy brands like Sephora SEA are focusing efforts on the customer’s end-to-
end journey, which often occurs across analog and digital.
To achieve true end-to end journey personalization, Sephora SEA is beginning to integrate
CRM data with Dynamic Yield. By onboarding this transaction history, Sephora SEA 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 SEA, have fun trying
on makeup until she finds exactly the right look, and ultimately receive concierge online
experiences with recommendations that match her style.
Dynamic Yield’s personalization technology stack helps marketers

increase revenue by personalizing each customer interaction
across web, mobile apps and email. Our advanced customer
segmentation engine uses machine learning to build actionable
customer segments in real time, enabling marketers to take instant
action via personalization, product/content recommendations,
automatic optimization & real-time messaging.
Request a Demo
We’re confident that we'll increase your site's revenue
dynamicyield.com | [email protected]

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CASE STUDY

Sephora Digital SEA

“With Dynamic Yield, Sephora SEA customers can

Alexis Horowtiz-Burdick, Managing Director

Sephora SEA is a true personalization pioneer, crafting a plethora of individualized in-store

• Quickly surface the right products for each individual user.

That’s when they turned to Dynamic Yield.

1. Served “no search” result recommendations to move users back into

Variation 1 performed definitively better in several countries, Variation 2 performed best

4. Created unique experience for visitors on store location page

Dynamic Yield’s personalization technology stack helps marketers

We’re confident that we'll increase your site's revenue

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