A recent study conducted by customer engagement specialists Contactlab in conjunction with Exane BNP Paribas has highlighted the revenue growth potential from taking a more personal approach to customers’ online spending habits.
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 appear to strengthen the evidence for brands to connect e-commerce with bricks and mortar stores to develop an integrated offering and innovative marketing programs.
Massimo Fubini, CEO of Contactlab, comments: “Luxury brands need to shift their perception and open their eyes to the mutual benefits of engaging with digital customers. Digital contact with customers is transforming the luxury industry and with the rise of e-commerce and digital engagement tools, luxury brands are gifted with information from customers’ online activity, allowing them to know 80 per cent of their in-store customers by name. A luxury brand’s success is based on its ability to leverage customers’ digital profiles and purchasing decisions in order to tailor engagement.”
Fubini continues: “There is a wave of growth in e-commerce as many customers resort to buying online at the click of a button for convenience and ease, however there are significant advantages if brands can drive these anonymous consumers to a more engaged, cross-channel relationship. 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.
“By ignoring online channels through which they can engage anywhere with customers, brands are leaving a blind spot which does not allow them to get an accurate image of their customers’ profiles, behaviour and preferences.”