Sephora

Sephora makes money by selling high-end makeup and using its “Beauty Insider” club to keep people coming back for points and free gifts. They give shoppers a fun place to play with and try on thousands of products. They won by letting people touch and test everything, unlike old department stores where things were locked behind glass. Their secret is their massive pile of data; they know exactly what lipstick you like, so they can send you the perfect coupon at the perfect time. They use Data Leverage to run a Referral/Loyalty model through retail stores and apps.