Luxury brands lag behind high street for integrated multi-channel customer experiences

Published on 12 July 2013 by in Latest News

Multichannel customer service luxury retail Luxury brands lag behind high street for integrated multi channel customer experiences

Burberry’s recent report of strong results thanks to online sales and click-and-collect service trials has raised questions for other luxury retailers over whether they need to re-evaluate their own multi-channel strategies.

For an industry that relies on creating an image of quality, the luxury retail sector has been surprisingly slow to embrace the opportunities mobile and digital to offer customers a superior level of service. In fact, as digital innovation think tank for the prestige brand sector, L2, reports, just 11 per cent of luxury retailers offer click and collect services. Considering Econsultancy reports 40 per cent of consumers now use click-and-collect services, this clearly represents a real missed opportunity.

While to date, this decision to limit sales and service channels may have reflected a desire to preserve the exclusivity of luxury branded products, as consumer expectations undergo a radical shift, the longevity of this model is called into question. Many high street retailers have begun placing a strong emphasis on better integrating their service channels to provide a smoother multi-channel customer experience, causing consumers to expect the same service elsewhere, particularly for high-ticket items.

As one of the first luxury brands to recognise this fact, fashion retailer Burberry began trialling click-and-collect services in 25 stores in April last year, and now plan to roll out the scheme to further stores in the coming months. This impact of this strategy for the company has been overwhelmingly positive, contributing to a 13 per cent like-for-like sales increase in its first quarter driven primarily by strong online sales growth.

This impressive result may serve as a warning for other luxury brands in danger of falling behind consumer service expectations in the multichannel era, and could trigger a wave of technology adoption for the sector.

To learn more about solutions to provide a more convenient, personal level of customer service across multiple channels, contact numero.

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