By Marco Passoni
We hear a lot of talk about ‘zero cost added value’ in the luxury sector today. These are the things that brands can offer which cost nothing, but create added value for the customer by enhancing their experience. They include storytelling and brand experience and – most importantly – human interactions and touches which enhance the overall brand experience.
I read an excellent example of this on LinkedIn recently from someone who had visited a Jacquemus pop-up and while waiting in the queue was brought a drink and given an update on the waiting time. Small, personal touches which not only enhanced the experience, but strengthened their bond with the brand.
I have, myself, had the opposite experience. I once queued outside a Birkenstock store only to be told, with no warning, that the store was closing and we could not get in. Such missteps leave a bad taste and can ruin a customer’s bond with a brand.
It goes without saying – even though I feel I must say it – that we are not in an era, or a market where brands can take their customers for granted. The modern shopper expect to feel valued. Many shoppers, especially younger shoppers, have their own brand which they want those brands they shop with to align with. And all shoppers expect a personal and enriched experience when shopping in person – if they wanted cold and impersonal then they would shop online.
The modern shopper expect to feel valued – if they wanted cold and impersonal then they would shop online
But there are two key issues to consider when it comes to these small touches. The first is: they must be the right small touches for your consumer. Knowing your shoppers and their needs and preferences is a core pillar of both the luxury and travel retail markets today. Shop teams must fully understand who is walking into their store, and how they expect to be treated. This requires insights and expertise, as well as training and infrastructure to support the delivery of these expectations.
This brings me to the other key issue: this ‘zero cost added value’ expectation is not actually zero value. It does cost money and it can also deliver real benefits. In travel retail, ACI World has shown that a 1% increase in experience leads to a 1.5% in revenue. Happy customers are also proven to spend more and do more cross-category purchasing.
But getting this right is not free either. Getting proper understanding of your shoppers and how to treat them requires expert insights – and expertise rarely comes free. However, when chosen correctly, it pays dividends.
For me, these small touches are something the travel retail sector could – and must – understand and build upon. Our travelling shoppers are often stressed or tired, and a moment reaching out from a brand may not make an immediate sale, but it will create a link which could be invaluable in the future.
