Luxury brands are raking in millions of dollars every year. The relationship between luxury brands and their customers stems from a deep understanding and trust. These customers seek more than just a high quality product or service; they desire an extraordinary experience. They want to be wowed, feel excited and be valued, and that makes the brand luxurious. This in turn results in loyalty and advocacy for the brand, as customers find emotional connection with the brand that they interact with.
There are several CX elements that brands employ, offering valuable lessons for businesses to achieve the same with their customers.
Luxury Brands And Their CX Strategies
1. A narrative for emotional connection
Beyond delivering high quality products and services steeped in heritage, luxury brands create powerful narratives to connect with their customers on an emotional level, building the foundation of lasting customer’s loyalty. In a landscape where customer needs evolve rapidly, brands appeal to their customers by showcasing their personalities that resonate with their surroundings and individual lifestyles.
One example would be Patek Philipe, who is renowned for their high quality timepieces made and designed by their skilled artisans. Their marketing campaign “Generations” with the famous tagline “You never truly own a Patek Philippe, you merely look after it for the next generation,” implies that each watch is an heirloom holding sentimental value for generations to come. Leveraging emotional connections, Patek Philippe transforms the act of owning a watch into a truly special experience.
2. Exclusivity as the symbol of luxury
Exclusivity is another factor that luxury customers seek when interacting with the brand. Brands often weave narratives of limited editions and bespoke offerings, creating a sense of belonging to an exclusive community. This strategy not only generates rarity and demand but also fosters a desire among customers to own these exclusive products, thereby enhancing brand desirability.
Through bespoke services, brands establish connections with their customers, solidifying a sense of exclusivity. This elevates the customer experience, enhances the perceived brand value and cultivates an elite community that customers want to be in, fostering long term brand loyalty.
An example is Louis Vuitton, organising exclusive inhouse events annually for its best customers. Crafted with diverse activities, exquisite hors d’oeuvres, and champagne, these events are accessible only through invite, sparking curiosity and excitement among attendees.
3. A “wow-ed” experience beyond expectations
Luxury customers invest significantly in luxury brands, expecting an experience that transcends the ordinary. Brands focus on delivering exceptional service, paying attention to the smallest details, staying ahead of trends and providing innovative services. Enhancing and elevating the overall experience that is unique that goes beyond the customer’s expectations.
Ritz Carlton is a beloved brand that has cultivated a culture of “wow stories” that exemplifies this commitment. One such story example revolves around a lost beloved stuffed giraffe that a young customer had misplaced at Ritz. The Ritz team, instead of simply returning the toy, went above and beyond. They not only found the giraffe but also captured its “vacation” through photos, creating a personalised photo album for the boy. This had gone beyond customer expectations, further exemplifying Ritz Carlton’s commitment to deliver valuable experiences for their guests.
4. Tailored experience catered to every individual preference
While exceptional service is expected to be part of the experience for luxury customers, providing personalised products and services has become a desirable factor. We began to see brands adopting a data driven approach, delving into customer data and trends to enhance their interactions.
This can be in the form of product and services personalization and tailored recommendations, creating an intimate and exclusive experience for each customer.
A prime example would be Hermès Sur-Mesure, allowing customers to place orders for bespoke items. The team sketches, creates prototypes, and transforms dreams into reality. One of such creations, a Hermès rickshaw, now proudly displayed at the lobby of Four Seasons Kyoto, exemplifying the brand’s dedication to each customer for turning their personalised dreams into tangible realities.
5. A seamless and consistent omnichannel experience
The experience of visiting luxury brand’s storefronts imparts a sense of luxuriousness and exclusivity, precisely what customers seek. However, as we shift into the digital era, customers also expect luxury brands to provide digital channels that mirror the high end experiences found in stores. Thus, the luxury brands adopt strategies to design a seamless experience across all touchpoints, ensuring a consistent and cohesive brand identity and experience.
Burberry, for instance, piloted a social retail store concept in China. This concept store integrates social media interactions back into physical stores, allowing customers to scan QR codes to learn about product information and unlock rewards. Blending both physical and digital world experiences into one cohesive one, attending to the evolving expectations of its customers.
In Summary
For luxury brands, the focus has shifted beyond product offerings. Strong narratives that connect and bespoke experiences that excite can lead to increased brand loyalty and advocacy. These strategies can be adaptable by any business to align with the standards and desires of their customers.