Luxury retailers do not typically offer loyalty programs. However, with regular point-based price discounting schemes going against. The high-end and aspirational style of branding that the luxury sector is known for.
For brands striving to be competitive, however, reputation alone is simply no longer enough to inspire loyalty. And with demand for omnichannel on the rise. Neither is a single focus on in-store customer service.
Investment in digital clienteling tools
The Covid-19 pandemic saw many luxury retailers invest in omnichannel capabilities. However, as companies strived to connect with customers who could no longer shop in-store. Virtual consultations are one widespread trend, with the technology enabling sales associates to connect with customers in real time.
For luxury brands, digital clienteling tools also weight loss email leads add a more exclusive element to the customer experience, enabling sales associates to offer one-to-one communication alongside a range of personal shopping services. Some big retailers have invested in their own technology to deliver this. Last year, for example, Neiman Marcus launched NM Connect. A section of its app that allows store associates to access a personalised view of each customer. However, and customers to complete a “stylist match” exercise. That will connect them with a dedicated Style Advisor.
Incentivising interaction and engagement
While tier-based systems such as Farfetch’s are popular within luxury. However, brands are thinking outside of the box when it comes to how customers can earn rewards (and the type of rewards they receive). Experiential methods are coming to the fore, as demonstrated by The North Face and its XPLR Pass.
Instead of earning points through purchases, XPLR Pass members can earn points through activities such as checking in at a National Park or National Monument with the mobile app, as well as sustainable initiatives like bringing a re-usable bag when shopping at The North Face store locations. Both feed into The North Face’s ethos, which centres around nature and exploration. In turn, members can redeem points for similarly themed rewards, such as unique adventure experiences like climbing with professionals. In addition, members gain access to exclusive to new items (which they can test and return if they don’t like them).
Using NFTs to enhance exclusivity and drive engagement
NFTs, or non-fungible tokens, are a growing trend within all industries, but particularly within luxury retail where exclusivity and individuality is of high importance.
NFTs, which are unique cryptographic assets on the blockchain that represent digital files (usually art or collectibles), feed into this notion of exclusivity – hence why some have sold for millions of dollars. In turn, luxury retail brands are recognising how NFT’s can act as incentives for customers, and are increasingly incorporating them into products, as well as loyalty programs.