VIP events and premium appointments can enrich your brand experience and improve the way in which customers relate to your brand.
The luxury retail industry is recovering from the pandemic, which caused significant changes and presented a variety of obstacles. Although it changed customers' behaviours, the COVID-19 environment also encouraged brands to reconsider how they approached people and delivered experiences.
According to Statista’s research, the revenue in the luxury goods market in the United Kingdom will reach US$16.37 billion only in 2023. The market is predicted to expand by 4.48% each year between 2023 and 2027. Overall, internet sales are expected to produce 30.1% of total revenue in the luxury industry by 2023.
At the same time, according to Zippia's data, nearly 40% of consumers make an in-store purchase at least once a week. In comparison, only 27% of shoppers make at least one online transaction per week. Furthermore, 60% of customers prefer to shop in-store to save delivery fees.
This shows that physical retailers remain dominant while e-commerce continues to take a larger portion of the pie.
From the pandemic to the present: changes that improve how customers interact with in-store experiences
During the pandemic, customer support centres were overwhelmed with incoming calls, emails, and online interactions. The Economist published an article about Britain’s call centres going through this episode and how retailers looked for solutions. Brands such as British Airways delivered their customers to an automated system that thanked them for waiting and understanding. While other brands, such as Virgin Media, emailed its 5.5m cable and broadband customers, asking them to avoid calling. This initiative was followed by banks, newspapers, and insurance companies, which asked customers to avoid the call and switch to their online customer service.
However, as things began to return to normal, the retail industry identified that by prioritising flexibility and introducing hybrid advisor positions that combine physical and remote work, the future of this business may look very different. Workers, for example, can use a hybrid working model and operate the shop floor some days while also working from home, allowing them to adjust to consumer demands and keep clients’ loyalty.
As a result, luxury retailers with several storefronts and iconic locations were obliged to reconsider their approach. Valentino, for example, transformed an in-store event into a virtual experience. The 'Valentino Garavani Backnet' showcase is a first of its kind and allows clients to visit the Milan boutique virtually. Sales representatives were on hand to guide buyers through the hyper-personalized options.
This virtual in-store experience was simply the beginning of a series of ideas made by the retail industry to not only meet the expectations of their customers but also to provide a nicer and more personalised alternative for their customers and employees.
Luxury retail has always been about creating a one-of-a-kind experience. The more personalised the service provided by the brand, the more exclusive the name becomes.
Nowadays, the luxury experience should be sensitive to modern clients' purchasing habits, with merchants focusing on providing hyper-personalized and exclusive service not only when customers walk in but also through digital interactions such as video calls.
Customers' tastes have developed as well. A few decades ago, luxury goods audiences were more homogeneous. Today, firms can't even count on homogeneity within a single market.
3 solutions that premium retailers can use to increase loyalty while giving customers a unique and personal touchpoint
Adapting to the shifting customer perception of luxury requires more than just exploring new markets. It's also about luxury brands finding new approaches to connect with their customers on a more personal and deeper level. Such as:
- Offer a premium appointment-booking experience
Luxury brands do not need to move the planet to start driving appointment traffic. It is merely a matter of providing retailers with the necessary software.
ACF Technologies’ appointment-booking software makes it simple for customers to schedule, track, and reschedule appointments with any retailer from any device while enabling customers to schedule an appointment whenever it is convenient for them without ever having to wait on hold.
Through this smart software, customers will also receive automatic appointment reminders and notifications if a desired time slot becomes available.
In other words, through appointment-booking software, retailers will also be able to:
- Book private appointments + increase customer satisfaction → a customer booking flow will be based on real-time availability.
- Provide a consistent brand experience thanks to a fully customisable interface.
- Reduce no-shows with discreet mechanisms, such as push notifications and alerts.
- Create and promote exclusive events and workshops
To stay relevant and ahead of the competition, businesses must provide a distinctive, memorable, and hyper-personalised journey to customers from discovery to order fulfilment, whether in-store or online.
According to Antonio Carriero, Breitling's Chief Digital and Technology Officer, “75% of retail purchases are now digitally influenced. The customer journey is evolving. Something has changed for the physical world and the digital world.”
This demonstrates how closely multiple channels of luxury retail must collaborate in order to be successful— digital activity isn't just for e-commerce sales. Still, it's also a key component of brick-and-mortar retail.
Events, whether online or in-person, are now a must for retailers. It is an opportunity to show customers their brand essence, where they stand, and their new launches and products. Summing up, events and workshops also help to:
- Educate customers on the latest product service offerings.
- Increase footfall to stores.
- Create brand ambassadors and increase customer loyalty.
- Extend your reach by utilising secure video consultations
As mentioned before, luxury is about the brand and experience. Through video consultations, customers can have exclusive and hyper-personalised access while staff can also provide faster and more effective resolutions to consumers’ demands and needs.
Through ACF Technologies’ Assistant Anywhere, retailers can focus on:
- Driving sales effectiveness using a virtual face-to-face channel.
- Connecting online and physical store experience.
- Optimising staff working day for a hybrid world, working remotely or online while being in the store.
Luxury experiences are extremely valuable right now. Customers want to be heard and encounter distinctive scenarios and options, whether online or in person. Adding software to your retail brand can make a difference, not only for customers, who will benefit from more immediate and effective resolution and access to the brand but also for employees, who will benefit from more information and technological alternatives, allowing them to provide a better service and a more exclusive experience.
Do you want to learn more about providing luxury experiences? Schedule a demo, and let us help you.
