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24 KARAT OPERATIONS: HOW CAN LUXURY RETAILERS PROTECT THEIR BRAND ONLINE?

 * April 29, 2021
 * Sara Vaughn

The accelerated focus on digital sales beginning in 2020 has forced luxury
brands to develop new strategies to meet shifting customer expectations. Explore
how luxury retailers can protect their brand in today’s digital-first market by
elevating the DTC experience with 24 karat online operations.

--------------------------------------------------------------------------------

As more luxury brands sell direct to consumers online, they are constantly
seeking ways to differentiate the experience and protect their most valuable
asset: their brand. While a luxury brand may intuitively seem valuable,
companies have long known there is real, measurable value in that brand.

In fact, in the increasingly “digital-first” world of commerce, the online
shopping experience may be people’s first or only experience with a brand. For
this reason, luxury brands must take extra steps to assure that every aspect of
the experience meets the standards that shoppers expect (and that the brand
expects of itself).


GREATER EXPECTATIONS

Shoppers come to luxury retailers with expectations of an elevated experience.
Luxury retailers not only have to meet those expectations, but they must do so
on-brand, even more so for a luxury brand’s eCommerce channel. The high-end
boutique experience must translate throughout the shopping, purchasing and
fulfillment process of an online order to protect their brand in the digital
space. 

Regardless of the category of goods sold, the key elements of a luxury shopping
experience are fairly uniform:

 * Delivering on brand ethos: Maintaining a consistent and uniquely appropriate
   brand character through every detail of the shopping experience, from the
   online presentation of the merchandise, to the language and tone used by the
   customer service agents, to the quality and right-sizing of the packaging for
   shipping

 * Inventory optimization: Ensuring maximum availability of merchandise,
   including options like colors and sizes by leveraging fully integrated
   systems that provide real-time inventory visibility across channels

 * Concierge-level support: Providing 24/7 support staffed by knowledgeable
   agents across all channels (chat/phone/email) who are skilled at consultative
   selling, answering very detailed product-specific questions, proposing
   appropriate alternative merchandise if necessary, and pairing additional
   products (i.e. a bracelet to match a necklace)


COMMUNICATION IS KEY

The luxury experience requires a very different dynamic from conventional
customer support operations that are likelier focused on shorter average handle
times and the volume of calls handled versus the service rendered. The luxury
shopping experience is about relationship building or, more accurately, building
on the relationship the shopper already has with the brand. Luxury buyers tend
to be more brand loyal precisely because they are served with consistent
excellence. That excellence should include first call resolution for each
contact.

Great communication doesn’t stop there. Pro-active communication informing
customers of order status needs to go beyond the usual functional emails to
cultivate a relationship with the customer. Those notifications should be highly
personalized, attractive, and tastefully promotional.

Perhaps the most important communication is the delivery of the order itself.
The packaging needs to be premium, with unique brand elements, and with absolute
consistency from one package to the next. Shipping boxes should be sized
proportionately to the items shipped. And each order should arrive with a
personal note or other acknowledgement of the customer’s selection and continued
business.  

To make all this happen—and happen consistently—clear and detailed instructions
need to be communicated to operational staff, and routine oversight of their
implementation should be increased. These instructions assure adherence to brand
guidelines as well as the best possible experience for the customer.


BONUS POINTS

Some other elements of the luxury experience may seem more mundane but, in
context, can feel premium. These include offers like complimentary 2-day
shipping, which adds value without eroding a premium brand positioning.
Including return labels can exude confidence in the merchandise as well as make
the returns process that much more convenient.

Returns and customer dissatisfaction is where the frontline personnel are
saddled with the greatest responsibility for protecting the brand. This includes
diplomatic first-call resolution of disputes, as well as gathering feedback for
manufacturers to improve product quality or features.

At the high end of the spectrum, you’ll find operational details like using
actual white gloves to avoid fingerprints (on items like cosmetics or jewelry,
for example) or cleaning items of the tiniest amount of dust that might have
accumulated during storage.

Such attention to details in the context of luxury shopping is not exceeding
expectations, but simply meeting them. When a luxury brand goes
direct-to-consumer online, it must deliver an ultimate customer-first experience
to protect their brand. It must not only be excellent, but it must be true to
the spirit of the brand.

It’s precisely because these brands hold the customer experience in such high
regard that customers return the sentiment.

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SARA VAUGHN

As Director of Business Operations at PFS, Sara manages end-to-end eCommerce
operations for 10 brands, supporting everything form order management to
fulfillment operations to customer care (and everything in between). Throughout
her tenure at PFS she has supported clients across a range of verticals,
including health & beauty, jewelry and luxury brands, giving her a wealth of
industry knowledge.

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