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The Business of Fashion Podcast

How Is Luxury Customer Service Evolving? | Transforming Luxury

The Business of Fashion Podcast

The Business of Fashion

Arts, Fashion & Beauty, Business

4.5813 Ratings

🗓️ 27 September 2021

⏱️ 37 minutes

🧾️ Download transcript

Summary

In recent decades, the race to attract and retain customers saw dizzying amounts of money spent on clienteling — the industry term for building a 1 on 1 relationship with customers. Today, for major players of scale with the resources to invest in it, successfully digitising personalised in store service, which generates much high conversion rates through recommendations and experience, is being looked to as a key driver of future competitive advantage.

Indeed, the luxury service revolution is now rooted in creating a single customer view, enabling businesses to guide an individual consumer to the products and services it offers that match their specific needs. An opportunity that stems from significant shifts in generational attitudes towards data sharing and its use.

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Transcript

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0:00.0

I'm Robin Mery Pratt and this is Transforming Luxury, a new podcast series from the Business of Fashion

0:07.5

in which we're investigating how market disruption, new technology and growing consumer scrutiny

0:12.9

are driving transformative change in the $300 billion luxury goods market over a special six-episode series presented in partnership with Kana.

0:21.6

Today, we're talking about luxury service.

0:24.6

From the emergence of Paris's oak couture industry,

0:27.6

where names like Charles Worth and Madame Gresh were becoming the prototype luxury brands

0:32.6

among European and American elites, luxury service was defined by how well specialist businesses catered to the

0:39.0

unique demands of their uniquely demanding clientele.

0:43.5

As the personal luxury goods industry grew and globalized over the succeeding century, it

0:48.2

maintained much of the spirit of the Couturias and Savois-Faire Maisons that founded it, the

0:52.9

race to attract and retain the customers rich enough

0:55.5

to afford the ever more expensive items produced by competing luxury brands

0:59.5

has seen dizzying amounts of money spent on clientelling,

1:03.1

the industry term for building a one-on-one relationship with customers.

1:07.3

But today, market leaders' ambitions are even higher,

1:10.7

using technology to make the personalised

1:12.4

experiences once only available for the global elite, accessible to larger and larger groups

1:17.1

of consumers, while mapping those consumers' desires and interests in previously unimaginable

1:22.3

new ways, building luxurious service that is cohesive, connected and critically effective across the

1:29.5

multitude of touchpoints consumers can now access brands through.

1:35.4

But before we talk about Luxury's personalized service going digital, I want to kick off

1:39.3

rooted in the physical world.

...

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