Diversification and decompartmentalization of the customer experience in luxury.

2023-07-03 23:55:14

At the heart of the relationship between brands and their targets, the customer experience is changing following changing expectations and the rise of new concepts of diversification and partnerships. In a context of over-solicitation, consumers have the feeling of having already seen and experienced everything. The challenge for brands is to differentiate themselves, to maintain novelty, surprise and emotion in order to create a unique link and memorability with customers.

On the one hand, we are witnessing extreme customization in a one-to-one relationship that occurs at all stages of the consumer journey – data collected for targeting and content adaptation. On the other hand, brand loyalty is down (according to the study The Future of CX par Forrester) while the requirements are increasing.

Improving your customer experience means amplifying the loyalty and trust – key elements of the expectations of new generations – increase brand awareness and promote the word of mouth by turning customers into ambassadors. Among the factors of a good customer experience (analysis of PWC The Future of CX), we find ease of access, comfort, consistency and hospitality. Added to this is a key element: the human touch. Indeed, the experiences that mark are those that invite the human in their center, whether by the emotions provoked at the moment or those that last. The agency WANDS Paris accompanies brands to imagine disruptive ideas, to think outside the box, and to set up multi-channel activations to transform the customer experience.

The rise of exclusive services.

The norm in customer relations is to adopt a approach customer centric. This involves tailor-made services – in digital this can be the adaptation of content according to the target, personalized emailings or services around the art of gifting and personalization of the latter, with an augmented reality message… These services offered by WANDS allow a data gathering for fine targeting.

Brands are increasingly offering services that reinforce the feeling of exclusivity, of being part of the brand. This privilege is available both in digital and innovative activations – NFTs to join a club or a loyalty program – and in more traditional services through the use of the object: for example in print and edition, beautiful books, magazines or cards addressed only to the best customers of certain Houses. In the first case, the use of technology is nevertheless used to maintain a physical and human connection, like Dior Couture, which has developed a clienteling application, dedicated to helping advisors better prepare to welcome clients. In the second case, the physical objects are developed in the DNA of the brand, with sharp work on its image. At WANDS, the Consulting division develops content and animations capitalizing on the need for exclusivity. THE experts from L’Atelier guide the brands in defining the best image, working on the chroma and retouching for each medium and printing.

Immersive experiences beyond the walls.

Luxury brands have also developed decompartmentalized experiences in recent years. In addition to offering phygital activations, some brands instead offer a physicality with interactions that forge more emotions and sensations. Artistic and architectural pop-ups and concept stores sculpted in the sand (like those of Dior around the world – Dioriviera), branded beaches (Jacquemus in Saint-Tropez or Gucci in Ramatuelle), cafes and restaurants (Louis Vuitton) or sensory experiences and educational (La Maison Rose by Lancôme or La Fleur d’oranger by Chanel)… Luxury is diversifying and offering ultra-Instragrammable stagings that amaze and transport the audience through brand magic. It’s an invitation to take part in a more global lifestyle with strong brand codes that contribute to the status of a love brand. The physical borders are freed, just like the universes which mix – catering, lifestyle, perfume, fashion…

The contribution of artificial intelligence.

The use of generative artificial intelligence will continue the transformation of the luxury industry, through more interactions with customers and even greater personalization. Collection of customer data to provide appropriate recommendations, virtual assistance thanks to chatbots and product suggestions, universe in virtual and augmented reality, prediction of trends… Many brands have developed services enriched with artificial intelligence, such as Kérastase with its diagnosis K-SCAN hair, presented at Viva Tech 2023, or even beauty brands adopting virtual try-on (Chanel with its Lipscanner application which allows you to find your red color by scanning a color seen in your environment). AI not only helps identify customer issues but also better understands needs in order to deliver a unique experience. Technological tools make it possible to increase the quality of the services offered, while 63% of consumers say they are willing to pay more for a better experience.

Whether physical or digital, the customer relationship in luxury continues to be extended by the experiential, and brands would gain notoriety, commitment and loyalty by playing on emotions, exclusivity, and the trace left through the relationship with the brand. At WANDS, we believe that an omnichannel approach is relevant by taking into account the different points of contact and a journey that will be magnified. With expertise in brands sensitive to excellence, luxury and premium, the WANDS agency supports brands in defining their branding strategy, content, and improving the customer experience on different levers.

Partner article.

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