CUSTOMER POINT OF VIEW – Brands Offering New Types of Experience
The trends are changing constantly in the luxury industry and the customers expectations also, plus the fact that the economy is playing a very important role .When the economy is growing and the level of the middle class which is the biggest class start to move towards the next level, luxury is becoming more affordable for a bigger market and more and more expectations are up to be take care of. Luxury brands having a constant fight through this new situation every day. The expectations changed and the limited editions and unique elements specific for the niche products are hard to be kept when the market is so demanding.
Luxury is not anymore addressed to Kings and Queens, following the economy growth, luxury is changing to a mass marketing phenomenon of everyday life. The concept of luxury is suffering big changes across time and culture being very fluid. Not long ago was associated with sport cars, designer clothes, caviar and champagne, but is not anymore preserved for the elite. Because people get to experience much more material comfort , luxury became more about experience and personal fulfilment. The nobility and old valuable tradition are not representing anymore interest for the customers. Therefore, it could be an opinion of matters that luxury is becoming more about authenticity and experience, rather than monetary value.
Because the consumers are always evolving and stepping to the next level this is what happen in luxury industry now. The market is passing a moment of change getting a different approach on the luxury life , being more focused on the personal transformation and willing to improve their life. This may be identify as a feminisation of luxury, becoming more indulgence and being orientate for feelings and experiences. This is perhaps attributed to women’s increasing buying power in society, which is driving luxury markets such as well-being, clothes and tourism.
Research by American Express found that 60% of customers are willing to pay more for a better experience. While recently, the Temkin Group published a study and found that companies that earn $ 1 billion annually can expect to earn, on average, an additional $200 million within 3 years of investing in customers experience. That’s a 70% increase in revenue within 36 months.
A very good example of experience creation is Tiffany, an iconic store. Since 1837, Tiffany has been one of the most well-known and admired luxury jewellery brand. Together with its signature Tiffany Blue Boxes is known for its excellent design and quality. Tiffany have just opened Tiffany Style Studio in Covent Garden, London. A new concept and direction for the brand, visitors are encouraged to interact with the brand. This innovative approach is making waves like never before.
On show is a limited selection of the brands collections, with more emphasis on clients expressing their own personal style and personality through custom creations. There is a #MakeItTiffany bar where consumers have the option to get an embossment on leather goods or they can choose a ring, charm, cufflinks or pendants to be personalised, either by expert or the consumer can do it themselves. This ensure their item is one of a kind. Using a very different approach the new store is trying to interact much more with the customer than a normal shopping experience. In this way a stronger bridge is created between the two parts consumer and brand. Not mentioning about the practicality and the unique chance to be able to personalise the item by yourself having the filling of your own creation .
This environment creates an experience rather than just a store to purchase. There are numerous interactive areas to enjoy, such as neon lit walls, and vending machines for the brand’s popular fragrances. This is the first Tiffany store to provide this level of customer experience in the world. A welcome edition to the London luxury fashion scene
References:
How to create a great customer experience strategy by Steven MacDonald, November 19,2019: https://www.superoffice.com/blog/customer-experience-strategy/
Customer Experience Is The New Brand by Shep Hyken, Jul 15,2018: https://www.forbes.com/sites/shephyken/2018/07/15/customer-experience-is-the-new-brand/#5745f9067f52
Tiffany & Co. Style Studio Covent Garden website : https://www.coventgarden.london/womens/tiffany-co-style-studio