Digitally-engaged shoppers are bigger spenders in-store, according to a new report, Digital Frontier 2016: Digital Luxury is turning Mainstream. The research by Contactlab in partnership with Exane BNP Paribas suggests that digitally-contactable consumers account for more than a quarter of in-store sales by revenue and nearly three quarters of all e-commerce revenue in the luxury retail sector.
The findings further corroborate the value of e-commerce and, more specifically, the importance of linking up high street stores with the online marketplace. Retailers offering this integrated consumer experience continue to grow in prominence with those employing mobile marketing and retail remaining most popular with Generation Zers.
Massimo Fubini, CEO of Contactlab, the marketing and research company behind the report, insists that luxury retailers need to “open their eyes to the mutual benefits of engaging with digital customers.” He suggested that e-commerce and digital engagement present the opportunity for retailers to form closer relationships with their clients. As such, brands are able to tailor their products and marketing strategies accordingly and, accordingly, achieve greater client satisfaction and sales figures.
An additional incentive for firms to get on board with digital era is the influence consumers have on reviews and social media. For a customer to express delight or displeasure at a recent purchase is undeniably more influential that a brand’s own asserted customer service. Consumers appreciates first-hand experiences of the retail journey.
If luxury brands are the access the lucrative digital-engaged market – made up of customers who typically spend 50% more than in-store only shoppers – they need an online presence. A strategy of integration unlocks the potential for greater revenues, the ability to influence purchases and encourage brand loyalty.
As to the question of how to join up online and in-store sales, personalisation is more commonly being seen as the best means of doing so. Indeed, Waitrose, M&S, Missguided and JD Williams have each benefitted from increased sales as a result of personalising marketing materials and products. The research carried out on the four retailers also highlighted a correlation between in-store, online and mobile shopping as sales figures for each improved as a result of digital personalisation.
Fubini emphasised the growth of e-commerce more generally, though stressed that brands could see greater alignment with consumers and greater revenues if they’re able to inspire online shoppers to use both e-commerce and in-store channels for purchases.