The Week in Retail: How to Win in Luxury Retail

//The Week in Retail: How to Win in Luxury Retail

Luxury online sales are growing fast. 75% of all luxury sales today are influenced by digital. This could go up to 100% by 2025. E-commerce is a trend luxury retail brands must tap further in order to remain relevant, engaging and profitable. Luxury Society summarizes the key points from The Digital Luxury Experience Report 2015. There are five touch points that have an impact on a customer’s final purchase decision at least two-thirds of the time. The five touch points are the city store, person to person word of mouth, online search, sales people and the brand’s website. All are important for creating an outstanding luxury experience for customers. (Luxury Society)

Most luxury brands lose 80% to 90% of their customers after that first sell. The Luxury Institute, a New York–based market researcher, found customers who have a relationship with a salesperson typically spend twice as much and stay loyal for longer. High-end retailers, therefore, need to go the extra mile to create exclusive one-of-a-kind experiences such as invitations to private events, meet-and-greets with top designers and first-looks-at for new products for their clients. Outstanding customer service and following up with clients is also key. “Among luxury retailers, there tends to be more of a relationship with the salesperson. They keep records of what somebody’s bought, what else they have in their wardrobe, how many homes they have, what they like to do on the weekends,” says Maureen Atkinson, a senior partner at Toronto’s retail consulting firm J.C. Williams Group. “The more the salesperson knows about the customer, the more likely they are to be truly helpful.” Solutions such as CRM and Clienteling facilitate the process. (MarketingMag.ca)

Retail industry experts agree that the ability to operate on several marketing channels (including in-store, online and mobile) is a key factor which merchants cannot afford to ignore. This is especially true of high fashion customers that are very mobile and can transition among various purchasing channels and across countries with ease. High-end retailers that offer free returns, inspires customer confidence and loyalty. In addition, many luxury retailers have discovered that when there is no charge for delivery, there are far fewer returns. Luxury retailers also need to facilitate international returns. A tourist purchasing luxury goods in a US branch of a luxury store and then returning to his or her home might not be able to return. While some merchants use a single gateway for all markets, mitigating the problem of international returns, these merchants face other cross-border challenges, such as steep cross-border and currency conversion fees, higher decline rates, and greater fraud risk. (Entrepreneur)

 

2015-07-26T11:54:36+00:00 July 26th, 2015|Articles|