Loyalty programs for Luxury Brands: from transactional to relational
The new age of loyalty
In the luxury market, loyalty is no longer defined by purchase frequency, but rather the ability to strengthen long-term customer relationships. For this reason, the real challenge brands face is the implementation of invite-only formulas, VIP Clubs and experiential initiatives to build a deeper relationship ad collect high-profile data.
Client expectations
Expectations vary between generations: from co-creation for Gen Z, omnichannel authenticity for Millennias to personal advisory for Gen X. In this landscape, nurturing relationships with Aspirational Luxury Customers (ALCs) is crucial, as this segment generates up to 50% of today's global luxury revenue.
The architecture of luxury
The luxury client does not distinguish channels: every touchpoint needs to be in direct contact with the others to avoid creating costly discrepancies. Loyalty is therefore build via a totally frictionless ordinary experience and a customer service perceived as a relational touchpoint that offers white gloves service to solve probelms for the user.