Written By: eyos Marketing | Last Updated: May 2023
Luxury retail prides itself on exceptional customer experiences.
Look at luxury fashion. The segment has stayed resilient, despite the challenges of the early 2020s, with a recent report by The Business of Fashion and McKinsey predicting it would see between five and 10 per cent global sales growth in 2023. That’s a figure that outstrips the rest of the fashion industry, which was due for significant decreases.
Much of luxury fashion’s success is built on a realisation that customers crave hyper-personalised experiences. An Accenture survey of 2000 European and North American fashion consumers shows:
- 84 per cent are interested in creating and buying personalised fashion products
- 92 per cent would share their data to allow fashion brands to tailor such products
- and most consumers are even willing to pay more to access these products.
Receipt data is just one way to get creative with luxury retail marketing and personalisation.
Understanding In-Store Shoppers
For example, receipt data can provide valuable insights into who was in-store, including their typical spending and purchase history. This information can be used to personalise in-store interactions. This can be as simple as greeting customers by name or providing personalised product recommendations after store visits.
“The most important enabler for product personalisation? Ultimately, it’s having data on consumer behaviour, preferences, and tastes.” — Sizing Up Personalised Fashion, Accenture
Luxury retail marketers can also mine their receipt insights to extend customer experiences beyond the initial purchase. For example, brands could offer customers early access to exclusive product launches, or entice high-spending online shoppers into stores to avail of experiences with personal shoppers.
“Brands will embrace creative campaigns and new channels such as retail media networks and the metaverse to achieve greater ROI on marketing spend and gather valuable first-party data that can be leveraged to deepen customer relationships,” predicts the BoF/McKinsey report.
Tracking Offline Conversions
One of the biggest challenges facing luxury retailers is tracking the impact of their online marketing efforts on in-store sales.
- Receipt data can help solve this problem by providing insights into how customers interacted with the brand on online channels before making a purchase in-store.
- By tracking offline conversions, retailers can gain a better understanding of which online marketing efforts are driving in-store sales and adjust their strategies accordingly.
For example, if a particular social media campaign is driving a significant amount of in-store sales, retailers can allocate more resources to that campaign to maximise its impact. Look at how Nike reaches sneaker fans through its Air Max days.
Personalising Customer Interactions
Ideally, these trends will inform an omnichannel strategy that engages customers across your active channels. If customers in a particular city are known for buying particular brands or products, luxury retailers can then personalise marketing communications, such as email newsletters or targeted social media ads.
By tailoring these communications to the individual customer’s interests and preferences, retailers can increase engagement and drive more sales. The right mix of technology and personalised in-person interaction is essential for luxury retailers looking to improve the customer experience. Talk to eyos today to get started.