How can luxury brands use consumer behavior insights to improve their marketing strategies?

Luxury brands are underestimating the power of their data about customers' profiles and purchase records. As The Economist stated, you should consider big data as one of your most valuable business assets. Data are a precious resource. If you don’t tap into such information, you leave value on the table. Big Data analytics is a tool to build luxury intelligence to scale and grow. According to Luxe Digital, about 85% of luxury sales come from clients already in their database, and big data enables them to identify and understand affluent lifestyles and purchase behaviors.These insights generated by big data can drive competitive advantages. And by segmenting consumers based on their behavior, big data can also open the door to new markets.

Puede parecer contradictorio pero las marcas de lujo deberían hacer un esfuerzo por democratizar su oferta de productos sin entrar en conflicto con su exclusividad, una de sus indudables señas de identidad y razón de ser. Está claro que un alto porcentaje de sus clientes cuenta con una desahogada posición económica pero no deben pasar por alto que existe una amplia capa de población que se encuentra en ese límite capaz de afrontar un elevado desembolso de una manera puntual u ocasional. Me estoy refiriendo al hecho de realizar regalos para conmemorar eventos únicos que sólo ocurren una vez en la vida. Ser capaces de mantener un adecuado equilibrio entre exclusividad y democratizacion es el reto que deben afrontar las marcas de lujo.

The massification of luxury happened by the mid 90´s. Up until then, i.e. a mobile phone was almost exclusive for a millionaire or a head of state. Status was the main drive to acquire such said item. Today there are more cell-phones than people on earth. So, by listening and using those insights to create a renewed experience with a luxury brand is the future for that market.

El lujo trata sobre modos de vida, comportamiento y compra, no solo el poder adquisitivo. Debemos crear productos en base a segmentaciones y no a la inversa

Você pode, via geolocalização, identificar os celulares que visitam sua loja para avaliar onde mais esses celulares vão: quais restaurantes frequentam, quais shopping visitam. Com isso, você sabe onde mais você pode levar sua marca (ex: montar uma exposição de produtos exclusivos na recepção de um restaurante sofisticado) para ser relevante, presente e disponível. Compreendendo os hábitos on e offline do seu cliente você sabe como melhor impacta-lo.

Un dénominateur commun des consommateurs des produits de luxe est qu’ils recherchent une offre personnalisée et sur mesure. C’est dans cette optique que l’ensemble des données collectées sur la structure de leurs achats et leurs habitudes de consommation est primordiale pour présenter une offre personnalisée. Les grands groupes de produits de luxe disposent d’une base de donnée pointue sur les habitudes de consommation de leurs clients. Une bonne exploitation de ces données permet d’identifier avec précision les personas et de formuler une communication et une proposition de valeur attrayante.

As marcas de luxo se destacam ao criar uma conexão emocional profunda com seus clientes. Mais do que oferecer exclusividade, é sobre envolver os consumidores em experiências únicas e um atendimento excepcional. Ouvir e valorizar o feedback é crucial para fortalecer essa relação. Marcas como Coco Chanel e Tiffany são exemplos disso, transformando cada cliente em uma parte vital de sua história, por meio de emoções e experiências autênticas.

The first step for integrating insights from big data analytics into decision-making is to set proper timeframes and expectations of returns from investment in big data. Defining metrics to measure success in developing analytics is also imperative for understanding performance. Traditional high-end businesses have a unique competitive advantage related to the size of their offline retail presence. Combining knowledge from both sources, retail insights, and online data will gain brand equity and market share. Integrating all these insights into business strategy means provide personalization to customers and improve day to day sales, supply chain, and customer experience processes.