Luxury retailers are failing at cross-selling

Luxury brands need to bridge the gap between online and in-store activity to create a streamlined, personalised shopping experience, marketing experts have stressed.

Consumers buying luxury goods both online and in store spend around 50% more per year than in-store only customers, but according to customer engagement specialist ContactLab, the majority of luxury brands are still lagging behind the curve in offering a service which manages both online and in-store activity.

Massimo Fubini, CEO of ContactLab commented: “It is surprising to see that not many luxury brands are optimising the relationships they can have with their customers. Luxury brands are faced with competition with online retailers and so need to up their game in order to take advantage of the online sphere.”

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ContactLab’s team of experts carried out 61 store visits in New York City and developed 21 parameters to measure digital and physical retail integration amongst top designers.

The study highlighted the drastic contrast between a handful of brands such as Ralph Lauren, Bergdorf Goodman and Burberry whom have succeeded in achieving a seamless, omni-channel experience and those who were trailing behind, including Dolce & Gabbana and Dior.

It examined how digital is being leveraged to make the most of traffic in-store and found that digitally engaged clients spent more in-store.

Burberry is a good example of collaboration of online and offline operations with click & collect already representing 15% of Burberry’s online sales.

The study also examined which brand promoted their e-commerce activity through promotions in store, which had Bergdorf Goodman and Saks leading while 70% of the panel appeared to be lagging in these measures.