Brand recognition to a full 360°

Driving long-term customer interaction & retention in luxury goods & services companies

Number 1

The problem

Customer retention rates in the luxury goods and services sector continue to sit at between 10-30 percent in the top-tier brands. It remains exponentially more expensive to acquire a new VIP customer than it is to retain one.

Marketing and advertising get more attention and investment but the moments of truth in this sector often doesn’t happen online but rather, between human beings.

Yet, the productivity and efficacy of a brand’s most critical (and expensive) front-line customer services personnel can be very low compared to their true human potential. More often than not they are focused just on transactions instead of on building profitable long-term customer relationships. Employee training seeks to address these problems but this is very time consuming and costly.

Number 2

The solution

PRE:MIND’s technology solution adds value to existing high-end customer loyalty programs by empowering a brand’s customer facing personnel to be more effective and to provide a greatly enhanced customer experience. Across the spectrum of key VIP customer retention strategies PRE:MIND adds enormous enhancements.

Mobile for relationships

PRE:MIND provides sales and customer services associates with a powerful mobile solution to build relationships, not just execute transactions. In order to dramatically increase customer retention by equipping them via mobile devices to communicate with clients respectfully and intelligently and from a position of deep customer understanding. For the 20% of customers that generate 70-80% of revenue, PRE:MIND helps the brand’s personnel to cultivate a human connection.

Share & update

PRE:MINDs enables staff to share the customer profile transparently with the client and update their details and purchase history so that they can serve them better. This small and simple step earns the trust of clients and give valuable insights.

Reassign relationships

When sales or customer service professionals leave or are sick, PRE:MIND enables immediate and seamless reassignment of the relationship with the VIP. No longer will customers be frustrated when their favourite sales associate leaves the company or is not around. The customer is always transitioned to maintain a connection with the brand. When relationships are transitioned in a humanistic, honest way retention metrics rise.

Cultivate tourists

PRE:MIND enables brands to cultivate tourist customer relationships as deeply as local relationships. In many brand locations today, especially in major international cities like Singapore where most of the revenue is concentrated, the percentage of buyers who are tourists is extremely high, often above 50%. Tourists are often treated as transient purchasers despite the fact that many have interest in purchasing from the brand again.

PRE:MIND gives brands what they need to leverage global online capabilities and stores in the customer’s home city to build lasting relationships, increasing revenue across the brand’s multi-channel global network.

Number 3

How the magic happens

PRE:MIND empowers the brand

Immediate value-add

Brand’s sales and customer service personnel are immediately alerted to a VIP entering the vicinity (store, VIP lounge etc) on their mobile device so they can be prioritised. On the device they can access the VIP’s photo for instant recognition as well as their personal details, preferences and purchase history. They are thus empowered to provide a personal greeting and a fully informed customer experience that maintains the VIPs sense of exclusivity and reinforces their relationship with the brand. Enables more effective sales and/or customer service.

Mobile app

Brands will continue communicating with their VIP’s via their official mobile app as usual. The Brand will receive a PRE:MIND app-addon developed by our highly qualified tech-team. PRE:MIND will embed its hi-tech software within the Brands' app, and as it’s published - the VIP’s will update the app in a normal fashion over iTunes or Google Play.

Number 4

What it does for you

Merging online & offline personas

PRE:MIND’s back-end CRM allows brands to track all of their interactions with the VIP in one place - pulling in their online transactions and merging them with their offline transactions which can be directly updated to the CRM in the PRE:MIND app.

Enhancing VIP communications & PR

Brand’s communication & PR is more involved as they can segment the market & clients in ways that only the e-commerce market has been able to do.

Brand to brand exposure

PRE:MIND will enable brands to co-create value by leveraging segments of each other’s VIP customer data via the app to promote special offers and services.

Example

Brand’s VIP Person has travelled to NYC for holidays, and will as usual check in at e.g. the Four Seasons Hotel. Hotel Ritz-Carlton, whose target demographic encompasses the VIP, would really like her to stay at their hotel instead. Ritz-Carlton will thus approach Brand and ask if they can collaborate on a segment of Brand’s VIP’s who are travelling to NYC. In this marketing collaboration a VIP who fulfills the segment requirements (e.g. not living in NYC, shops for at least $X/year, female, etc.) would – at the end of her visit at Brand’s venue – be approached by the sales person, offering a free cocktail party on the hotels’ roof-top, on the behalf of Brand & Ritz-Carlton.

As the VIP enters the hotel lobby and is ushered into the elevator to the VIP-area on the roof-top, she will not only enjoy the hospitality & great service of Ritz-Carlton, but also leave NYC with a fond memory of the hotel, dramatically increasing the likelihood for a repeated visit.

ARTICLE No.3

Making your store a VIP destination

Omnichannel experiences require associates empowered with actionable data

In 2018 most average retailers will use location technology to map customer movements in their stores, place items where they're most likely to be seen and send offers, surveys, and ads at the right time. But that's far from enough.

“The role of the store is definitely changing. The growth of the online channel is remarkable, boosted by the ‘millennial state of mind’ that has permeated the luxury industry. But this doesn’t mean stores have lost their purpose – brands need to reinvent them to create an on-going engagement with customers that transcends channels", said Federica Levato, partner and co-author of Bain global luxury goods study 2017.

The report tells us it's good news; in the luxury segment, we're all doing better than last year! The overall growth is 5%, according to Bain. But the growth for retail, in general, isn't far behind.

While Bain estimates that online retailing will be a quarter of the luxury market in 2025, KPMG tells us that only 23% of the average shopper prefer visiting stores over online!

It's not surprising that most people today consider online better than in-store shopping since companies are better at personalizing the online experience, and the main benefit of shopping in store is still the option to touch and feel the product - just like it was 50 years ago before any advanced technology was available.

The main benefit of shopping in stores is still the option to touch and feel the product - just like it was 50 years ago.

Empower
your staff—
enable a
curated
experience

Whether or not the store offers something better than online has to do with if the in-store experience is curated and relevant to the customer and if it delivers on the brand promise. But most companies make the mistake of leaving the technology to the customer, with "use your cell phone for our AR experience"-type offers.

While the luxury retailer is far from average, luxury brands need to take their technology support seriously for state-of-the-art retail locations. Enabling sales associates to adapt service, based on CRM-information, to the specific customer entering the store is just the first step. Combining the customers online and offline persona to a true omnichannel experience is also crucial. Any data you have about your customer should be put to good use, because honestly, they expect you to deliver an impeccable experience regardless if they're visiting your store in Singapore or Paris, as well as when they touch base with you online.

Use smart technology it to empower your sales associates in their customer service approach, not to replace the human connection.

Clothes on floor
Woman with purse

Don't use smart technology as a shiny thing to distract your audience from the fact that you have no idea about their wants and needs. Do use it to empower your sales associates in their customer service approach, but not to replace them. It's time to stop talking about customer-centric experiences and start to deliver on them if you want a brand that deserves true loyalty.

If you want to know how PRE:MIND can help you, check out our solution and how PRE:MIND works. Feel free to contact us at any time; we would love to hear about your challenges!