New Marketing Report Places Importance on E-Commerce


According to new research, luxury brands across the industry are using the customer’s digital footprint to create tailored customer engagement strategies which increase sales. Luxury retailers have wavered in utilizing the digital reach employed by other retailers because they didn’t want to reduce brand value, but market conditions for crafting the personalized, exclusive experience expected by luxury brand loyalists have altered dramatically over the last few years. High penetration in the smartphone market drives much of the change.

How E-Commerce is Driving Sales

With both over 25 percent of in-store revenue being generated by digitally contactable customers and a significant e-commerce revenue originating from these customers (over 70 percent), customers who utilize technology make up a sizeable component of sales. Joining other brands such as Burberry, luxury brand principal Chanel took the plunge into the e-commerce arena with Coco Crush, a limited run of jewelry in 2015. Half of the six pieces sold out within hours, including the most expensive piece, an 18k gold cuff priced at $20,500. Many other luxury brands are also backing away from their previous stance on avoiding the internet marketplace due to the wealth of information available from these sales.  Unsurprisingly, global recognition is one of the factors pushing luxury into the internet, and many brands find it imperative to handle their e-commerce in-house to maintain brand integrity.

E-Commerce is Driving Engagement

The greatest payoffs, however, come from using digital profiles to increase traditional brand strategies. Even with limited on-line runs to generate information or the use of harvested digital footprints, luxury retailers are able to know 80 percent of these customer names in-store. Customers who are digitally accessible have 50 percent greater cross-platform spending than those with only traditional in-store customer profiles. Greater knowledge of the customer for the retailer allows for greater wealth of information available during the creation of a more personalized shopping experience, without distracting from the contact centered, personal approach luxury clients demand. Customers reached in this way spend 20 percent more than customers who are just registered, likely due to the ability to increase engagement.

Five points to know:

  1. 27 percent of in-store sales are from customers who have online activity and are reachable digitally, allowing you to know more information about their spending and habits
  2. 73 percent of e-commerce revenue comes from these same customers
  3. Brands leveraging mobile and digital profiles create greater engagement and increase profits per sale by around 20 percent.
  4. Electronically reachable consumers spend 50 percent more across platforms when they are engaged in a customer experience that meets brand expectation.
  5. Customer experience still drives luxury brand sales.

For more information on finding an experienced leader in sales, pre-sales, analytics, or marketing to navigate the changing waters in luxury, global e-commerce with digital customer experience, contact the experienced executive search team at Artemis Consultants. We provide high-quality talent, which we considerately select for your corporation, your current corporate culture, and your brand goals.

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