The luxury market resisted online marketing for years, fearing brand degradation and that additional investment wouldn’t yield a return. Yet, this thinking is changing, quickly. The ubiquity of internet and social media use includes the high net worth market. Skipping the social media space thus means passing on a rare opportunity to engage the core market directly.
Versace decided to get in front of this trend. Rather than enter social media with trepidation, a common approach in the luxury apparel market, this premier apparel and accessories brand worked with enter:new media to launch an integrated online-to-boutique concierge service to engage its customers through the holiday season, cultivate brand loyalty and infuse a personal touch into the online retailing environment.
Through a custom microsite, versacewishlist.com, visitors could choose from a wide range of Versace merchandise, including new items not yet available to the general public. The application includes the capability to track clothing sizes, as well, ensuring that the user’s exact preferences could be recorded. Then, they could either forward the list to the people most likely to buy the contents for them – such as a husband or family member – or make a purchase directly. After having been opened to a targeted list of Versace customers, access was later extended to fans of the brand on Facebook and followers on Twitter.
Instead of merely receiving the order via mail, the custom application sends it to a local boutique, where the recipient can see the clothing, try it on and work with a specialist to ensure that the gifts or personal purchases are exactly what she wants. High-touch service is thus wrapped into the experience, differentiating Versace’s social media marketing and selling technique from the rest of the market.
Through the Versace Wishlist site, we created a new way to induce customers to enter the in-store experience, which remains highly valued in the luxury sector. Once a customer enters the store to complete the Wishlist purchase, opportunities for cross-selling and up-selling open up, delivering an opportunity to increase the value of the transaction – and the ROI from the social media marketing effort.
The social media space doesn’t preclude personal interaction. In fact, it can drive more opportunities for high-value client interaction, as long as the marketing program is constructed properly. As we’ve seen with Versace, customer engagement should be pervasive and ongoing. What starts on the web can end in the store, especially when your most loyal customers are given access to products before they reach the shelves.
The digital economy has embraced the luxury sector – and vice versa. The industry’s new challenge is to harness this environment to deepen the customer relationship and increase the frequency and size of purchases. As we’ve shown with Versace, a clear ROI on social media marketing is not only possible but attainable.
