Customer relationship management (CRM) is defined as the combination of strategy and technologies that allow for an organization to manage and analyze customer data, experiences, and interactions. Essentially, it's a way for organizations to connect more closely with their clients.
The Rise of Digital CRM in the Luxury Industry
Luxury customer experiences have long been distinguished from ordinary customer experiences. Exclusivity and attention to detail are the hallmarks of a luxury buying experience. Creating a memorable experience starts with the brand’s relationship with the customer, and how it fortifies that relationship over time, making every interaction memorable.
With the rise of the digital age, the luxury industry has begun to adapt to the digital CRM as an increasingly important tool in leveraging a luxury brand’s connection with its valuable customer. These tools can be used to understand the customer more deeply, and to know the small details of their particularities. The digital world can enhance these relationships, and support the most important aspect of the luxury brand’s business structure: the human component .With a wealth of options available to today’s luxury consumer, brands must go the extra mile to impress.
The Holistic Customer Experience
In the luxury industry, an intimate understanding of the customer, and their unique preferences and concerns is the crux of building an emotional connection. The human component of customer service in this luxury experience remains at the forefront of the equation. In the world of ultra high-end shopping, a presence online is not enough to create a conversion – the digital experience may peak the interest, but it is the strength of the relationship that will ultimately determine the loyalty of the customer.
A digital CRM can be understood as a tool in leveraging this mission; teams can use data collected about the customer to better understand and predict their behaviors, and therefore become more attuned to serving the customer.
Using this data for tailoring customer experiences is an effective way for a brand to demonstrate a strong understanding of its customers. Adapted messaging and offering by each individual client provides the invaluable experience of personal attention. With an ongoing effort to remain aware of the customer’s unique profile, and thus build a stronger relationship and facilitate better communication, the end goal remains the same as it always has been; to create customer loyalty.
Ultra Personalization & CRM: Balenciaga
Luxury goes beyond the superficial aspects of just quality products and the experience of owning them: fulfilling the customer’s basic expectations. It now embodies a new meaning: tailored offerings that demonstrate a brand understands their individual customers very well; their unique desires and aspirations. Personalization can greatly benefit brands by creating a sense of exclusivity and emotional connection with consumers.
In recent campaigns, Balenciaga has demonstrated a trend towards personalization. In order to reward its top customers, Balenciaga created a campaign where each client received a custom-designed bespoke item for their birthday with their name imprinted on the item. This completely unique item strengthens the relationship between Balenciaga and their customer, while also giving them the sense that they have received a specialized item just for them.
