3 Ways Luxury Retailers Can Win at Customer Experience


Rita Das

When you think of luxury, what comes to mind? A luxury car like a Ferrari or Lamborghini? Flying first class to Bora Bora? Or maybe it’s finally getting your hands on that Vitamix you’ve been eyeing since last Christmas.

The idea of luxury has not only changed over the years, but it also differs from person to person, making it that much harder for brands to market to their consumers. The explosion of technology doesn’t help either, with luxury brands having to interact with consumers in an omni-channel, AI-powered world. Below are three ways luxury brands can win at customer experience management and grow customer satisfaction, customer loyalty, and retention.

CX Leaders Offer Convenience

Expectations for luxury brand experiences are high, with shoppers demanding excellent customer service, convenience, and accessibility across all touch points, including web, social media, mobile, and in-store. With covid-19, it’s been difficult to have an in-person customer experience, so how do brands provide the same level of customer service online? I’ve seen luxury brands offering personal, virtual shopping experiences where the sales associate walks through the brick-and-mortar store and assists the customer via video. This kind of interaction is effective, but brands now need a strategy to seamlessly bridge the CX gap between virtual and physical worlds.

Feedback Favors the Unexpected

Customer feedback shows shoppers want an element of the unexpected in their interactions with luxury brands. For example, if a buyer walks into a luxury retailer like Prada, they expect to see the items Prada sells, like handbags or dresses. But what if customer service went a step further? What if the sales associate noticed the customer looking at a specific leather bag and introduced them to the person who actually makes the bag? Or if the sales rep brought something from the back that isn’t sold in stores and offered it to the customer? It's this kind of customer-first experience that luxury retailers be thinking about. Their customers expect the extraordinary, and little surprises across touchpoints can create great experiences, while also offering opportunities for up-sell.

Exclusivity Drives Brand Loyalty

Investment in a well-equipped tech stack is a critical part of a successful customer experience management strategy. Since the idea of what luxury is varies from person to person, brands need a solution to capture analytics and determine what’s relevant for each customer. For example, if I spend 20 minutes surfing and clicking on the Prada website, and then I purchase that item in-store, a great customer experience doesn't keep sending me ads for the thing I already purchased.

To remain best-in-class, retailers need to track how individuals are shopping, what they’re buying, and use this data for personalization. Long gone are the days where brands could generalize their audience by gender, age, location. To ensure a positive customer experience, shoppers should be targeted as if they are the only person in the world. Millions of people could scroll through the same web pages, but their motives could be very different, so retailers need to deliver a data-driven CX.

Technology has had a huge impact on digital customer experiences and the way people shop, whether it’s for a car, a handbag, or their next vacation. Retailers, especially luxury retailers, need to keep innovating their customer experience to stay one step ahead. It is no longer an option to have a bad customer experience. With the amount of competition luxury brands have, attracting and keeping loyal customers is a must.

Want to Learn How You Can Win at CX?

Check out our new white paper: 3 Ways to Create Timeless Digital Experiences for Luxury Retail Shoppers.

Questions? Contact us to discuss how to deliver a better digital customer experience.

Stage 1: Fragmented: Multiple Channels

You’re a digital dinosaur!

You have a beautiful website, but with fragmented digital experiences, you run the risk of extinction.

It’s time to evolve.

Your audiences want a seamless experience, no matter what's happening behind the scenes. When your experience is different or difficult, it’s important to start with the basics, such as cultivating a holistic approach to online digital experiences. Realign your teams, platforms, processes, goals, and metrics around a comprehensive view of the online experience. Focus on the end-to-end customer journey cutting across channels, desktop and mobile.

separate channels animation circle t-rex dinosaur square
Stage 2: Integrated: Multiple channels

You’re a fish!

Signs of exciting life are starting to form. Your DX is responsive and adaptive but it’s not quite personalized yet.

Keep swimming!

The integration of your brand content across every touchpoint (website, online store, social media, emails, apps, point of sale) creates immersive experiences. These flagship sites combine content-rich brand experiences with immediate conversion capabilities. Business teams and marketing are closely aligned. However, while the digital experience is responsive and adaptive, it’s not yet personalized.

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Stage 3: Instant: Global expansion

You’re a crocodile!

You’re taking it global. Speed and scalability are key and just like a crocodile, you’re fast…but you’re clumsy.

Oh snap!

In this stage, the online digital experience becomes completely dynamic. You need content that is global, yet relevant, with plenty of local insights: Who is the user? Are they using a mobile phone? Is it raining where they are? Is it snowing? If it is, maybe they need warm, waterproof boots. All of this contextualized information creates a better user experience. With one global orchestration, you’re able to adapt everything, in whatever country or language you choose – while keeping turnaround times low. So keep evolving.

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Stage 4: Dynamic: Real time personalization

You’re a lion!

You’re reaching more customers in more countries and languages than ever before, and now you’re finally hunting and collecting info with precision.

But you can do more to keep your brand roaring!

As you graduate to the Instant level, you’re able to rapidly update everything - not just in one language and for one country, but in 20 languages and for 100 countries. Speed and scalability are key, driven by the need to roll out global campaigns in all languages and all touchpoints and make updates in minutes or hours, not weeks. But there’s still more to do to reach nirvana.

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Stage 5: Immersive: Elevated experiences

You’re Captain Content!

You’ve done it! You have opposable thumbs AND you’re saving the world with your seamless, elevated customer experiences.

You're a superhero in the digital space.

Your digital world and your physical world are blending together in the most complementary way possible. When shoppers visit your store, they’ll be greeted with their pre-selected products. Language changes dynamically depending on country of origin – it's like the whole store was set up just for your one specific customer.

In this final stage, your customer experience is truly immersive and superior, and your flagship store merges your physical and digital world into one, with a truly personalized individual experience.

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