Luxury Brands and Mobile: How to Win in Changing Times
The incredible computing power of mobile phones, now a ubiquitous part of everyday life, is changing the way we shop. When it comes to the luxury goods market, many players have lagged behind the general widespread adoption of eCommerce in retail, not quite knowing how to use the tools of online selling to appeal to their exclusive customer base.
But with the maturation of mobile eCommerce capabilities, things are starting to change.
So how can luxury brands use mobile to deliver bespoke, high-quality digital experiences that will meet customers’ expectations? What trends and technical developments do brands operating in this space need to be aware of? And how can they apply personalization through mobile to build individualized shopping journeys on par with their brick-and-mortar stores?
The changing shape of luxury retail
The internet has been moving to a mobile-first model for a number of years, and eCommerce is no exception. Mobile shopping accounted for 72.9 percent of all online sales in 2021. By 2025, mobile sales are expected to double as a share of total retail sales.
For luxury brands, this is an opportunity. The technology exists to create breathtaking customer experiences and funnel them straight to the well-manicured hands of luxury shoppers. The opportunity that online brands now have to create exclusive experiences to match their brand identity is one that can’t be passed up.
Alongside the growing adoption of mobile, with its increasingly sophisticated computing power, has been the emergence of Millennials and Gen Z as the most significant market segment in the luxury retail space.
According to a report by Bain & Company, by 2025, millennials will make up 40% of the luxury goods market. And what’s more, older generations of luxury shoppers are being influenced by the values and shopping habits of their younger counterparts.
This has implications for the way luxury brands market themselves. Millennials and Gen Z shoppers prefer an omnichannel experience, opting to split their purchasing journey between online purchasing (predominantly on mobile for younger shoppers) and real-world stores where they can touch and see these expensive goods.
Along with the changing demographics of luxury shoppers, there has been an increased emphasis on brand values and integrity. Today’s luxury shopper is just as likely to make a purchase because the product helps express their authenticity than because it allows them to demonstrate their status.
Brands that’ve kept pace with the move to mobile are able to meet the needs of the changing luxury shopper with personalized recommendations and messaging, and data-driven experiences.
As eCommerce comes to represent a more significant proportion of sales, mobile experiences will need to provide the enhanced, memorable experiences that consumers crave, in the online world as much as the real one.
Luxury shoppers need compelling, personalized experiences
Specialized online marketplaces such as Shopbob are accessible ways for consumers to see luxury goods side-by-side with other, non-luxury items. Visitors can research luxury brands and products in one place, comparing price, quality, and specifications.
However, brands are increasingly using monobrand marketplaces and encouraging customers to buy direct from their own sites, offering customers a personalized, curated experience and connection to values.
To capture the growing demand for luxury online experiences, brands will have to offer deeply personalized experiences that make visitors feel valued and recognized.
The ability to test and use data to drive high-quality customer interactions is key to winning over today’s online luxury market. AI and machine learning can automate testing and analytics, providing advanced customer insights at scale and allowing you to deliver individualized experiences to your visitors.
How brands can leverage personalization in the luxury space
Getting the digital experience right for luxury shoppers has been a tough nut to crack. But the ability to deliver content-rich, personalized shopping journeys online has shifted attitudes.
While there will always be a place for the attention to detail and personal service that brick-and-mortar luxury stores can provide, brands are increasingly finding themselves able to provide hyper-personalized shopping journeys, driven by data, and replicate the tailored world of luxury offline stores.
Personalized recommendations, personal accounts, and features such as store locators can all help to create a smooth and consistent omnichannel journey that feels exclusive and tailored to individual customers.
How Monetate Personalization can play a part in luxury brands’ success
Monetate Personalization provides 1-to-1 personalization at scale, meaning you can create unique experiences for each of your customers and deliver the tailored service that luxury customers expect.
Monetate Personalization capabilities include:
- Intelligent product recommendations that add value for customers and unobtrusively move them to your product pages
- Personalized search that allows customers to discover hyper-relevant products more easily
- Content optimization to create the most appropriate layouts and messaging, customized to individual visitors
Monetat’s personalization platform uses AI and machine learning to automate testing and analytics, allowing you to move beyond instruments such as customer segmentation to craft individual, bespoke experiences that resonate with luxury shoppers.
The luxury goods market is changing, with shifting demographics, technological innovation, and new customer preferences fuelling a growing demand for high-quality, exclusive, and personalized digital interactions.
Getting these experiences right will meet the demands of this new and exciting landscape.