In today’s competitive world, undoubtedly, consumer is the king and companies need to exceed consumer expectations to create loyal customer base. Technology driven global leaders such as Apple and Amazon have raised the bar of consumer purchase experience by providing excellent customer service, convenience, vast variety, on-time deliveries, free returns and what not. Luxury industry is no exception to this phenomenon and increasing consumer expectations from luxury brands makes it imperative for them to understand consumer psychology to thrive in the dynamic luxury retail environment.
For luxury brands and retailers, understanding the luxury consumer journey is most important to be able to deliver best to these well-versed, discerning consumers. It is about knowing what exactly your consumer wants and being able to provide that and much more.Luxury retailers must work to make consumers’ shopping experience a seamless journey. Every time when consumers interact with luxury brands, it is important for retailers to make them feel delighted. This will create customers for life and maximize customer lifetime value for luxury brands. Just think about the last time you stayed in a luxury hotel or shopped at a luxury store or took a ride in luxury sedan or visited a gourmet restaurant or ordered something on a luxury portal. You will certainly have some memory about how you felt about the entire experience. Did you loved the experience or hated it? Was it worth your time and money?
Happiness research reveals that retailers need to trigger emotions of shoppers not just during the time of actual purchase but also during pre-purchase and post-purchase phase. It requires putting the customer at the center of the entire consumer purchase journey and providing flawless experience across all touch points.Personal relationship built on trust should be at the heart of every customer transaction.
Here are 5 keys to provide great luxury customer experience:
Similarly, live chat can provide real time assistance to the online luxury buyers making them feel important. Such engagement willboost consumers’ confidence in brand and refrain them to move to competitors’ brand. A recent study has found that shoppers who are engaged through live chat are 4.73 times more probable to convert and they can spend nearly 60% more than those who are not engaged.
Note: Technologies like AI and live chat are providing a new opportunity for luxury brands to offer better and seamless customer experience both online and offline.But, at the same time, technologies such as block-chain should be used to ensure data integrity and privacy.
Note: Luxury retailers need to consciously invest in data driven analysis of in-store purchase behavior which will be the key in providing better customer experience in the future.
Note: Luxury brands must quickly act based upon customer feedback as if they will not care about their customers, they will lose their customers forever.
Note: No matter how significant technology becomes in providing superior customer experience, role of sales associate will always remain most important.
Building micro-moments: Luxury brands claim that they are in the business of creating dreams and making them true. Therefore, brands must surprise and wow their customers again and again. Marketers must amaze their consumers by doing something which they least expected. For instance, sending a small gift with a hand written note wishing them on their birthday or giving a little freebie with their order just to make them feel special or simply inviting loyal customer to an exclusive VIP sale to make the customer feel part of the elite community.
The article has been authored by Sheetal Jain, Founder & CEO, Luxe Analytics