by Suzanne Hader
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The big numbers at luxury retailers typically appear on price tags, but here's one to which they should pay close attention: 204.
That would be $204 billion, the forecast for overall e-commerce revenues for 2008—a projected jump of 17% over 2007. And if history is any indication, you can expect the luxury market to keep pace. Upscale apparel alone accounted for $1 billion in online sales in 2007, according to Forrester Research.
Considering the stakes, it's no surprise that the online sales channel is becoming increasingly important to the bottom line of top-shelf brands as consumers of luxury products and services continue to demonstrate their willingness to spend as much through commerce-enabled Web sites as they do in stores.
Despite this trend, many luxury brands continue to separate their online and mainline marketing efforts, confusing customers with disconnected messaging and missing golden opportunities to cross-support expensive marketing initiatives.
What few realize is that the best experience—the experience that the customer wants—results when all channels work together and complement each other.
Here are five guiding principles to help brands achieve this goal:
1. Web sites are the perfect venues for impulse purchasers and those who want to do deep research on your product or service
Optimize your Web site to capture those impulse and research opportunities. For example, brands can take advantage of customers' desire for immediate gratification by making all merchandise available online, no matter how expensive. Even if it's a bespoke item with a flexible price, take a deposit and give your customer the chance to commit.
Web sites also allow your clients to shop in privacy: on their own terms and on their own turf. Customers who don't have access to or want to try on the brand before shopping in person can be encouraged to become part of an online community via a blog, discussion forum or email.
Consider luxury timepiece maker Jaeger-LeCoultre, which has created a successful blog called "Le Club," where watch aficionados congregate to discuss all things luxe and horological.
2. Understand the strengths of email and use it to its fullest potential
Give customers a sneak peek at new products or services, making them the first to know. Segment emails on a one-to-one basis, something luxury customers love. For example, luxury apparel and accessories online retailer Net-a-Porter.com recently implemented a sophisticated email marketing tool that sends customers an email twice weekly. Each email message is built dynamically based on a customer's preferences and past shopping history
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Comments
by Paul Sat May 17, 2008
I've been trying to make a point of this to my boss, who doesn't feel that channel integration is a good idea. His feeling is that we should focus on different things online and offline, trying appeal to more groups.
We're in the wine business, which encompasses the luxury market (a lot of "trophy wines" certainly fit into that category), as well a larger low end market. There is an ongoing battle here - how to get the right mix of products into the correct channels.
I'm trying to get the boss to see the value of a consistent message across the board. It doesn't seem to be getting through, though.