Luxury customers are different from other customers, and luxury brands must craft their strategies accordingly.
The key to success is customer data. Luxury brands must master the customer data and analytics necessary to meet the exacting demands of their most discerning clients.
Customers are more discerning today than ever before.
Customers are more discerning today than ever before. They’re also better informed, they’re more connected, and they demand a lot more from the brands they choose to support.
The first thing that comes to mind when you think of this new breed of customer is their expectation of transparency—and rightly so. Consumers have become increasingly sophisticated in their ability to distinguish between not just authentic merchandise but also between experiences and the more disingenuous ones.
Brands across every industry are struggling (or not) to live up to that expectation of authenticity.
But there are also other ways your customers expect you to be different from the rest.
Luxury customers want personalization without being followed.
Your customers want a personalized experience, but they don’t want you to know about that keen desire for personalization.
It’s an interesting paradox in the luxury space: high-end consumers want personalized experiences, but they don’t want to be followed around and effectively stalked by your brand. In fact, they don’t even want to know that you’re watching them. They just want to feel special and respected and listened to—and you should respect their privacy.
Luxury customers have high expectations.
Luxury customers have high expectations.
They want personalized experiences, and consistent experiences across all channels and they expect to be treated as individuals. In fact, luxury customers expect to be treated like royalty.
Loyal customers are valued more than ever by luxury brands.
The loyalty of a customer is more important than ever. Not only do loyal customers buy more, they are also more likely to recommend and stay loyal. And this is not just the case in luxury: it applies to most industries.
- Customers who buy multiple products from you are worth more than a single purchase.
- Loyal customers spend on average 50% more than first-time buyers (source: The Economist)
- They are 2x as likely to recommend your company or product to friends or colleagues (source: Nielsen)
Customers are more connected than ever before and expect a consistent experience across all channels.
Your customers are more connected than ever before and expect a consistent experience across all channels. They expect to be able to connect with the brand, receive personalized information, and be able to shop in the middle of the night on their way home from work.
The more connected our lives become, the more important it is that your brand provides an engaging shopping experience.
Customers want to be able to engage with your company through social media, email newsletters, and reviews. They want to feel like they can reach out and talk directly with someone at your company in case there is any confusion or questions about their order or purchase experience.
Customers want authenticity and transparency.
Customers want authenticity and transparency. They want to know where their products are made, how they are made, who is behind the brand, and that they are getting what they pay for.
This is not just a luxury issue; it is an issue across all industries—this includes grocery stores and fashion stores alike. Customers want to know that their food has been sourced responsibly, ethically, and sustainably; they also want to know that if something goes wrong with the product or service in question, there will be someone willing to take responsibility for it.
To meet the exacting demands of luxury customers, brands must master the customer data that helps them deliver personalized experiences that are consistent across all channels.
To meet the exacting demands of luxury customers, brands must master the customer data that helps them deliver personalized experiences that are consistent across all channels.
When it comes to luxury, it’s not just about product performance or price. It’s also about delivering a superior customer experience and establishing a relationship based on trust and personalization.
When you consider that 88% of consumers say they shop with brands they feel have their best interests at heart, it becomes clear how important this kind of relationship is—and why it begins with your data strategy:
Customer Data Is Key To Delivering Personalized Experiences
Customer data is an essential component for delivering personalized experiences because it allows brands to understand each individual consumer’s distinct needs, preferences, and behaviors so they can create targeted messages for them across every channel.
That’s why McKinsey notes in its recent report on digital transformation that “a key enabler for digital business models will be an increasingly detailed understanding of customers.”
Accenture points out in its 2018 Consumer Experience Report, “customer-centricity is the new norm.” In other words: The more you know about your customers’ needs, wants, and desires—and what drives them together—the better able you’ll be to deliver satisfying service experiences that keep them coming back again and again (or at least keep them talking positively about your brand).
In a luxury market that is growing in complexity, brands must understand the needs of their customers and use data to deliver personalized experiences that meet those exacting demands.
The customer experience is no longer just about the product; it’s also about how well brands know their customers and how they can use this knowledge to deliver an authentic experience across all channels and touchpoints.
Learn more about how Pretectum CMDM can help your brand maintain customer loyalty.