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Prestige Retailer Sephora Selects Medallia as Customer Feedback Solution

Real-Time Reporting Will Be Available To All 202 Stores in North America

Menlo Park, CA—May 27, 2008 — Sephora USA, a leading retailer of prestige beauty products, will implement a comprehensive customer satisfaction feedback program across its 202 North American stores using cutting-edge Enterprise Feedback Management (EFM) solutions from Medallia, the EFM provider today announced.

Employing Medallia’s real-time, web-based system, Sephora will conduct post-shopping surveys of customers at all of its locations in North America. Shoppers will be invited to access an online survey through a URL printed on their receipts. The solution will provide customer experience data that is higher quality and more quantitative than the mystery shopper program data it will supplement.

The program also supports Sephora’s overall strategic initiative to differentiate itself through innovation, exclusivity, and service. Sephora will use the customer experience data to:

• identify innovative product and retailing opportunities through advanced analyses of customers’ open-ended comments,
• improve service by empowering store and regional managers to act on store-level customer data and by using the data to better train employees, and
• make the customer experience more holistic—and more exclusive—by tracking and trending customer experiences

Medallia was selected in a competitive bid process. Sephora said that it chose Medallia for three key reasons:

1. its superior technology,
2. its easy-to-use, intuitive user interface that front-line staff would be able to understand and operate, and
3. its ability to execute feedback programs in the retail sector

"We spoke to Medallia reference clients, including globally recognized retail leaders. They universally praised the solution. It confirmed for us not only the superiority of the Medallia system but also the value of putting in place such a state-of-the-art customer feedback solution,” said Kahla Broussard, Sephora’s Vice President of Retail. “Empowering the store managers with the level of customer satisfaction data Medallia provides will help us create unique shopping experiences for all of our clients."

Said Medallia’s VP of Retail, Nelson Pascua, “Sephora is a marquee brand that transformed the cosmetics retailing industry by focusing exclusively on the customer experience.

“It is gratifying to be chosen by such an innovative and customer-focused company. We look forward to helping Sephora take its customer experience to the next level,” he said.

Pascua noted Sephora’s history of innovating to meet customers’ needs. The cosmetics company has enabled customers to try products before purchase by introducing open-sell gondolas and easy-to-access wall displays, plentiful testers, clearly displayed prices, and a staff of professional beauty experts trained in the "Science of Sephora," not in sales pitches.

ABOUT SEPHORA

Sephora, the beauty authority, revolutionized the global beauty industry with its unique retail concept rooted in a powerful combination of unparalleled brand and product assortment, distinctive store design and the beauty expertise of its sales consultants. Sephora offers clients a choice of more than 200 classic and emerging beauty brands across a broad range of product categories including skincare, makeup, fragrance, bath & body, hair care, smile care and tools, as well as the company’s own private label. Sephora was founded in France in 1969 and acquired by Paris-based LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group, in 1997. Celebrating its 10th Anniversary in 2008, Sephora America operates 202 stores in the United States and Canada, and the world’s top beauty website, Sephora.com. Sephora Europe has more than 500 stores within 12 countries and has established 30 locations in China. Thanks to Sephora’s recent partnerships with HSN, a global multi-channel retailing giant, and JCPenney, one of America’s largest department stores, the beauty authority is now accessible to more clients than ever before.

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