The Digital Frontier 2016: Digital Luxury is turning Mainstream study, produced by customer engagement specialists Contactlab in conjunction with Exane BNP Paribas, revealed the influence of luxury online customers on total revenues. Digitally contactable customers are high spenders in-store and account for 27 per cent of in-store revenue and 73 per cent of ecommerce revenue. These figures strengthen the evidence for brands to connect ecommerce with bricks and mortar stores to develop an integrated offering and innovative marketing programs.
Customers with a known digital presence can have a powerful influence on global brand sale revenues. It is increasingly valuable to utilise customer information gathered from different touch points of the customer journey. Luxury brands need an online presence in order to connect with their digitally contactable customers, whose extra cross-channel spending is 50 percent greater than in-store only customers. An integrated strategy will unleash revenue generating potential for brands to influence customer purchasing decisions by using various digital tools which promote customer engagement and encourage brand loyalty.
In the info-graphic below an overview of the main findings from the 3rd edition of the research led by ContactLab and Exane BNP Paribas.
Luxury brands need to understand they can take advantage of digital contact with customers, who leave their precious “digital fingerprints” from their online activity. Having the opportunity to collect and interpret these information, brands can create very detailed customers’ digital profiles and use them in order to tailor engagement.
Since there’s a wave of growth in ecommerce, once more brands should strengthen cross-channel strategies, transforming anonymous consumers into known and digitally contactable customers. By establishing cross-channel relationships brands can encourage loyalty and increase revenue; as a matter of fact, in-store digitally contactable customers spend 20 percent more than those who are simply registered, and those known customers who buy both in-store and online spend even more.