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How personalised Luxury Marketing can get?

Recent years have seen an increasing trend towards personalization within the luxury retail sector, with retailers developing innovative new ways to identify their customer’s individual needs and desires, before building a retail experience which satisfies them. But just how personalized can luxury marketing get?

The rise of big data means that it has never been easier for luxury brands to understand who their customers are, and what they desire. Customers of luxury brands now have higher expectations than ever, and expect a personalized and bespoke service when they visit a store. A recent study by Accenture Personalization discovered that customers are quite willing to give their personal information to a brand, if it results in them receiving a personalized shopping experience.

For many years, retailers had the personal data of their customers, but had no way of utilizing this data as part of a personalized luxury marketing campaign. However, new developments in technology have allowed luxury stores to develop a seamless marketing campaign and shopping experience which is highly personalized.

For example, the rise of mobile devices such as smartphones and tablets allow luxury brands to create an electronic profile for each customer, which is normally linked to their email address. Increasing numbers of luxury stores are using beacon technology such as iBeacon to increase the levels of interaction with the customer during visit to the bricks and mortar store. These beacons will send messages to customers’ mobile devices as they move around the store, informing them of in-store offers, such as automatic discounts and other product promotions. To ensure relevance, these messages can be further personalized, by using information such as the individual purchase history of a customer.

Digital signage has now evolved beyond simply replacing traditional static signs with screens. Signage of the type used at the Korloff Paris luxury boutique in the Dubai Mall, creates an interactive and highly personalized customer experience. Digital signage can be linked to a store or loyalty card, so that when customers scan their card they can see exclusive promotions, products and services which have been uniquely tailored to them. A study by Nielsen found that 74% of brands who used digital signage experienced an increase in additional sales.

Personalization doesn’t end there. The Galleria, located in Abu Dhabi, recently showcased the Virtual Style Pod; an augmented reality dressing room. The latest 3D body mapping technology means that customers can browse and try on a wide range of clothes using this virtual dressing room, and see how they will look in real-time without having to get changed. In the future, it is likely that such technology will be linked to the personal data of the individual customer, allowing the virtual dressing room to become a virtual style assistant.

The future of luxury retail will involve the continuous evolution of technology. This will allow greater consumer connectivity, and increasingly immersive luxury retail experiences. In order to succeed, luxury brands must be prepared to embrace this, and offer their customers a high-quality personalized experience.