AI Retargeting at Sephora Delivers Record Breaking Sales Growth

Rishad Al Islam

System Overview
What it is: Sephora uses AI-driven marketing automation integrated with its CRM to retarget customers based on browsing history and past purchases. The system personalizes email campaigns with product recommendations, reminders, and promotions, driving significant increases in customer engagement and revenue.
Core capabilities
- AI-driven customer segmentation based on behavior and purchase history
- Personalized product recommendations and promotions in emails
- Automated retargeting workflows triggered by browsing or cart abandonment
- CRM integration for unified customer profiles
- A/B testing to optimize messaging and offers
- Real-time performance dashboards for revenue attribution
Business problems solved
- Low engagement with generic marketing campaigns
- Missed revenue from cart abandonment and lapsed customers
- Lack of personalization in large-scale marketing outreach
- Manual segmentation and campaign setup taking too much time
- Difficulty measuring ROI from email campaigns
Struggling with these challenges? Let’s discuss how AI-driven retargeting can solve them.
Industries served
Retail, beauty and cosmetics, fashion, eCommerce.
Actor Identification
- Primary actor: Sephora customer browsing or purchasing products.
- Secondary actors: AI marketing automation system, CRM database, email delivery platform, marketing team.
Actor Goals
- Customer: Receive relevant product suggestions and promotions tailored to their interests.
- Marketing Team: Boost email revenue and campaign efficiency with automation.
- AI System: Segment customers, personalize offers, and trigger campaigns.
- CRM: Maintain accurate, unified customer records for targeting.
Do these goals sound like yours? Let’s align them with AI-powered automation.
Context and Preconditions
- CRM integrated with AI-driven marketing automation tool
- Customer browsing and purchase data collected and linked to profiles
- Automated workflows configured for cart abandonment, replenishment, and cross-sell offers
- Email templates designed for personalization at scale
- Reporting system enabled to track campaign performance and revenue
Basic Flow (Successful Scenario)
- Customer browses Sephora’s site and adds items to cart but doesn’t purchase.
- CRM records browsing and cart data.
- AI system segments the customer and triggers an automated retargeting email.
- Email includes personalized product recommendations and limited-time promotion.
- Customer clicks and completes purchase.
- Revenue and engagement data are logged for campaign performance tracking.
Outcome: Sephora boosts email revenue by over 400% with personalized retargeting campaigns powered by AI and CRM integration.
Ready to boost your revenue like Sephora? Let’s design a retargeting flow for your business.
Alternate Flows
- A1: Customer ignores retargeting email: System triggers a follow-up with a stronger incentive or reminder.
- A2: Duplicate record in CRM: Automation merges customer profiles to maintain accuracy.
- A3: Email delivery failure: If email bounces, customer is flagged for alternate outreach channels (SMS, push notification).
- A4: Privacy opt-out: If customer opts out of marketing emails, system halts retargeting while maintaining compliance.
Like Sephora, your business can unlock massive growth through AI-powered retargeting and CRM integration. Let’s build your personalized automation strategy today.