Luxury And CRM- Back To Purity

I mentioned that luxury brands have suffered plenty barrel and challenges in the article”Luxury Guilty”. These companies may force to be changed because globalization and then they need to give a direct communication to present their value to consumers. In a market point of view, it is worth nothing that not just luxury industry but all business type to focus on‘ customer equity ’ , ‘ lifelong customer value ’ and ‘ being customer-driven ’. so we can see which industries move to this new evolution, for example, banks, insurance companies, rental companies, credit cards, services and so on. Move into consumer market or business to business.

The last brands to make a step in this their price premium on the attractiveness

and fame of their own names, that is, on their brand equity.direction have been brands that used to base. Thus, L’ Or é al Paris started a customer relationship programme only in 2005, with the creation of a database and with the associated customer relationship management (CRM) that goes alongside. Last but not least, luxury brands are now starting to examine the benefits of the ‘lifelong customer value ’ approach, beyond building the social prestige of their names.

 

However, Luxury brands have a great and unique fortune with which they can build customer relationships: they have their own distribution outlets. So, do luxury brands need to think of building a CRM program? And what critical they need to follow

WHY LUXURY BRANDS ARE MORE AND MORE INTERESTED

IN CUSTOMER RELATIONSHIP MANAGEMENT

Luxury companies, such as Rolex, Cartier, Louis Vuitton or Chanel, have achieved outstanding and durable worldwide growth over time, thanks to their heritage, to the prestige of their names and above all to their taste for quality and their constant flow of creations. Still, these brands now have to face many challenges:

Competition has got stronger and more complex.

Premium brands have worked on their products and image, and have given birth to ‘ new luxury ’ – which now threatens traditional luxury ’ s image and legitimacy, or at least blurs its boundaries.

Classic luxury brands have grown a lot themselves. They are now selling evergrowing

product arrays on a worldwide scale, and brands can have a tough time

controlling their image, or even their distribution. Heavy licensing leading

to less control over their distribution channels can damage their image in the

long run. Last but not least, customers have changed. The development of ‘ new

money ’ as well as new buying habits (for example, ‘ trading-up ’ ) makes it

more diffi cult for brands to address new, chameleon-like customers. Even the

customers who love luxury now split their expenses between a growing

number of brands, which can be luxury and non-luxury brands, or even massmarket

brands such as Zara, Mango and so on.

we dont just make car but make joy- BMW

http://www.youtube.com/watch?v=wrS-yXXVNMg&feature=related

LUXURY CUSTOMER RELATIONSHIP MANAGEMENT

MUST FOLLOW THE ‘ SHOPKEEPER ’ S BENCHMARK ’

To image that if we were a shop owner and trying so hard to earn customers’ trust, what will we do? What if we are just running one shop but plenty competitors are around us, what should we change to face the challenge?

We can see what we call the ‘ shopkeeper ’ s benchmark ’ is a real guideline for luxury CRM. This case is that of a shopkeeper in the 1950s, who has a restricted clientele, and who knows his customers by name, remembers their tastes and preferences and addresses them in a personalized way.

The shopkeeper does not only offer a very qualitative product: he also initiates a long-term relationship that can go beyond traditional, commercial interaction. Customers become more loyal: they give particular value to signs of recognition and gratitude.This ‘ shopkeeper’ s benchmark ’ implies three distinct steps:

The first step is to identify customers. Welcoming every customer with extreme politeness, calling loyal customers by their name, because we present the brand and will show the brand ’ s good disposition to start a sincere, bilateral relationship with its customers.

In luxury hotels, proofs of attention represent the main part of the

experience.

The second step is to understand the customer ’ s desires and expectations.

Companies must actively listen to their customers: they cannot impose anything,

and should only offer relevant answers to complex customer expectations.

All this can reach its acme with product customisation – which is the root of prestigious companies like Louis Vuitton or Aubercy.

The last step is to show the brand ’ s gratitude. This will be a perfect way to

feed the relationship in the long run – customers all have a variable ‘ lifetime value ’ .

to sum up, in this red ocean industry, luxury brands need to find out what is the nature of them, what is the pure value that they can provide to consumers. In addition, adding more unique characteristic and extra feature base on their pure value.