With the rise of digitalisation and technological transformation taking place in all verticals within a market where experience is intimately linked to service, how is the luxury market transforming itself while maintaining its essence and not becoming obsolete? To answer this question, we attended the talk ‘Customer Experience in the Luxury Sector’ organised at the Tech for Retail show in Paris.
Back to Basics? Or Have We Never Changed?
The salesperson remains a strategic player in the buying process. The service offered in that first contact with a salesperson is crucial to building the experience. The speakers conveyed that, in their experience, professionals must be prepared to anticipate needs and exceed expectations. Luxury brands must continue to dedicate part of their budgets to continuous training as a strategic investment with a high return, ensuring that their teams are aligned with the brand’s essence and are able to adapt to new trends. Nathalie Celia, CEO of Bucherer, stressed that employee training is the foundation of this.
Technology and Tradition: A Delicate Balance
During the talk, speakers shared how the incorporation of technology has revolutionised the way brands interact with their customers. For example, Elise Ducruet, Global Retail Transformation Director at L'Oréal Luxe, explained how they have demonstrated that personalised diagnostics and digital tools can enrich the customer experience.
Meanwhile, Nicolas Rebet, Founder of Retailoscope, warned about the dangers of relying too much on gadgets. ‘Technology should be a means to enhance the experience, not to replace human contact’, he emphasised during the conversation.
This transformation is promoting technology as a gateway to luxury for younger generations (such as Gen Z). Apps that facilitate communication and access to product information are bringing these brands to a wider audience. However, the challenge lies in maintaining the artisanal essence and human touch that defines luxury.
The Art of Personalisation
Personalisation is the lifeblood of modern luxury. From point-of-sale giveaways to details that reflect the customer's unique identity, every interaction must evoke exclusivity. As Nathalie Celia, CEO of Bucherer, says, ‘attention to detail ensures that the customer feels valued and special’.
With this in mind, brands can integrate technological tools that allow them to know their customers better and anticipate their needs. Fluent communication and the ability to adapt to individual preferences are key to building long-lasting relationships. While it is true that the temporality and the unique buying cycle of the luxury sector requires attention be paid to its particularities, the customer continues to prefer an offline experience (point of sale, packaging, personalised attention, etc.) over the digital environment, as the latter has a stronger association with the concept of luxury and experience. It is highly complex, and perhaps nearly impossible nowadays, to bring the same physical experience to the digital environment.
The Importance of the Environment and Social Responsibility
One aspect Nathalie highlighted as another important lever to build the experience is providing meaning to employees and fostering their connection to the brand. In an industry where many teams are made up of young people, it is crucial to promote a work environment prioritising their well-being and personal development.
In addition, social responsibility initiatives, such as the incorporation of young people from vulnerable backgrounds and the promotion of solidarity projects, can strengthen the brand's commitment to its community. These actions not only reinforce the company's values, but also bring a deeper meaning to the work of its employees.
Point of Sale Experience: A Scenario of Excellence
The point of sale remains the epicentre of the luxury customer experience. Elise Ducret highlighted the need to create exceptional moments that connect the customer with the brand in a memorable way. The chance to try products, explore new collections and receive personalised attention can transform a visit into an unforgettable experience.
However, as mentioned above, she also recognises that the online experience must evolve to complement this interaction. The integration of digital platforms with the physical point of sale enables an omni-channel experience that responds to the needs of today's customers.
A Human Moment: The Key to Authentic Luxury
While technology and personalisation are essential, the talk concluded by once again noting that authentic luxury is based on human contact. Nicolas emphasised the importance of a human moment in the customer experience. Every interaction must convey warmth, empathy and genuine interest.
The challenge is to balance the expectations of different generations, who may have varying perspectives on luxury. Adapting to these variations without losing the brand’s essence is critical to ensuring a consistent and meaningful experience.
Investing in team training, strategically integrating technology and maintaining a focus on human contact are the pillars for creating a transcendent brand experience.
The Principles of Luxury: Excellence, Personalisation and Human Contact
Luxury as a concept is constantly evolving, as customer expectations change rapidly, driven by technology and social trends. However, the core principles of luxury - excellence, personalisation and human contact – continue to be irreplaceable.
Successful brands in the future will be those that are able to innovate without losing sight of these principles. In the end, luxury is not just a product; it is an experience that transcends the tangible, creating memorable moments and meaningful connections with each customer.
