Blog
Luxury brands: Why it's time to get more intimate
Katharine Biggs, content and marketing manager at parcelLab, looks at how going direct-to-consumer and better managing post-purchase communications can help luxury brands reap the rewards of deeper emotional customer connections without compromising values.
February 7, 2020 by Katharine Biggs — Content and Marketing Manager, parcelLab
The very nature of luxury brands means they tend to be less emotionally connected to their customers than other brands as they strive to set themselves apart, shun populism and be part of the elite. But by portraying themselves as rather aloof, they are missing out on properly getting across their brand personality, differentiating themselves in the marketplace and creating loyalty by building intimacy with their customers.
This has been highlighted in a new survey that shows that when it comes to tugging at consumers' emotions, luxury brands aren't in the game compared to other competing goods and services.
In MBLM's Brand Intimacy Study 2019, which analyzed 6,200 consumer responses and 56,000 brand evaluations across 15 industries in the U.S., Mexico and United Arab Emirates, the luxury sector was ranked 14th out of the 15 industries studied. The importance of building an intimate emotional consumer connection was also revealed, with the study finding that the leading ‘intimate' brands in the U.S. have significantly outperformed the top brands in the Fortune 500 and S&P indices in both revenue and profit over the past 10 years.
So how can luxury brands connect more deeply with consumers and build loyalty without compromising their status? Taking a direct-to-consumer (DTC) approach could well hold the key. Allowing people to purchase goods directly from them online, luxury brands take over control of the customer journey from retailers. This enables them to immerse their customers more deeply in their brands as they move from browsing to buying. While customers shop on a brand's website, they are more likely to find out more about its history and heritage, its product stories and fellow customers. This all helps to build a closer bond, while reinforcing brand values.
Once a customer has made a purchase, luxury brands can enhance customer intimacy even further by taking control of the shipping process. Many DTC brands and retailers end their influence over the customer journey at the checkout by handing the shipping process, including customer communications during this period, over to their logistics provider. However, by doing so they are missing out on the most emotional part of the buying process, the phase when customers are feverishly awaiting the delivery of their shiny new object. And the more expensive and exclusive it is, the greater the excitement, anticipation and anxiety.
The UK E-commerce Shipping Study 2020 Fashion Edition revealed only one of the 10 leading luxury fashion brands in Britain, Hugo Boss, communicated directly with their customers post-purchase. The others either leave communicating entirely to their delivery companies or send intermittent communication. This shows the potential for luxury brands in fashion and beyond to forge more intimate customer connections, benefit from the commercial rewards this brings and also gain an edge over their rivals by controlling post-purchase communications.
Sending out messages directly to customers about the progress of their order enables luxury brands to continue to immerse people in their brand values, both in terms of the visual aspect of track and trace emails and the tone of voice. It also means they can be more attentive and improve the overall customer brand experience. This includes being able to inform shoppers of any issues immediately and how they are being dealt with, putting their minds at rest about their awaited purchases. This again all helps to build brand intimacy without compromising values.
Controlling post-purchase communications in this way also enables luxury brands to add further value — heightening the ‘luxury' experience — to drive repeat sales. The critical nature of emails at this phase in the buying journey means 60% of them are opened and read, creating a highly engaged audience. This unlocks the door for luxury brands to include additional messages that will grow intimacy and loyalty, such as tips on how customers can look after and get the most from their high-end buys. They can also use this new communications channel to suggest complementary purchases and boost initiatives like membership to the exclusive brand club, where valued customers get first sight of new products and special membership perks.
This DTC approach coupled with closer post-purchase communication enables brands to emphasise their unique and luxury status, while also getting up close and personal with customers and enjoying the commercial benefits that brings.
How Hugo Boss is forging deeper emotional connections post purchase
UK E-commerce Shipping Study 2020 Fashion Edition shows how the luxury fashion brand is increasing customer intimacy by managing its post-checkout communications in the following ways:
– Personalized communication: All communication comes from Hugo Boss and all are branded and personalized to the individual customer.
– Product recommendations: The track and trace page includes product recommendations based on the customer's order.
– Hugo Boss Experience: A personalized customer account that includes a history of all purchases online and in store, free alternation services and personalized offers.
So what could Boss do better? Well it could increase its up sell potential by including products in the delivery comms as well as the tracking page.
Katharine Biggs is content and marketing manager at parcelLab.
About Katharine Biggs
Related Media
Subscribe
Get the latest news and resources from Retail Customer Experience.
