According to McKinsey’s analysis of fashion forecast, the luxury industry will post top-line growth of 2 to 4 percent in 2024.
In most luxury fashion businesses, 𝟲𝟱% 𝗼𝗳 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿𝘀 𝗼𝗻𝗹𝘆 𝘀𝗵𝗼𝗽 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗯𝗿𝗮𝗻𝗱 𝗼𝗻𝗰𝗲 𝗲𝘃𝗲𝗿𝘆 𝘆𝗲𝗮𝗿, i.e. 𝗮𝘃𝗲𝗿𝗮𝗴𝗲 𝗮𝗻𝗻𝘂𝗮𝗹 𝗿𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗼𝗳 𝟯𝟱%. A key priority for luxury businesses to grow above the market average is improving customer retention, through perfecting the clienteling basics.
One way to improve the customer retention rate, is to have Client Advisors focus on building a personalized engagement with each new customer within the 30-day post-purchase period. Here are five tips to consider:
𝟭. 𝗠𝗮𝘅𝗶𝗺𝗶𝘀𝗲 𝗱𝗮𝘁𝗮 𝗰𝗮𝗽𝘁𝘂𝗿𝗲 𝗼𝗻 𝘁𝗵𝗲 𝘀𝗽𝗼𝘁: Don’t just capture customer’s email and first name, ask for their preferred engagement channel, the best time to reach them, any information about the brand they would like to be updated and so on.
2. 𝗠𝗮𝗸𝗲 𝗮 𝗰𝗿𝗶𝘀𝗽𝘁 𝗮𝗻𝗱 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝘃𝗲 𝗳𝗼𝗹𝗹𝗼𝘄-𝘂𝗽 𝗶𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻: Chances are customers receive multiple messages from stores every day, make it easier for customers to remember who you are with a professional profile picture and a sentence or two summarising your experience with them.
3. 𝗦𝗵𝗼𝘄 𝗴𝗿𝗮𝘁𝗶𝘁𝘂𝗱𝗲 𝘄𝗶𝘁𝗵 𝗮 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘀𝗲𝗱 “𝗧𝗵𝗮𝗻𝗸 𝘆𝗼𝘂” 𝗺𝗲𝘀𝘀𝗮𝗴𝗲, via customer’s preferred communication channel on the same day of the customer’s purchase.
4. 𝗚𝗼 𝘁𝗵𝗲 𝗲𝘅𝘁𝗿𝗮 𝗺𝗶𝗹𝗲 𝘄𝗶𝘁𝗵 𝗮 𝘃𝗮𝗹𝘂𝗲 𝗮𝗱𝗱 𝗴𝗲𝘀𝘁𝘂𝗿𝗲, such as offering a mix and match styling advice of the customer’s purchase or an aftercare tip.
5. 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗲 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗶𝗻𝘁𝗲𝗿𝗮𝗰𝘁𝗶𝗼𝗻: Offer relevant next engagement to your customer, this could be a product viewing, a store event or an update about the mall’s loyalty programme.
