TOWARDS A MORE CONNECTED AND ENGAGED LUXURY
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TOWARDS A MORE CONNECTED AND ENGAGED LUXURY The crisis is encouraging luxury companies to implement new strategies that are more efficient, more resilient and more customer-centric. But they cannot succeed in accelerating their digital transformation without a perfect command of these issues.
TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
CONTENTS FROM THE EDITOR
04 Chapter 1 • The luxury sector faced 32 Chapter 3 • The fine challenges of
with the health crisis luxury houses
06 Nicolas Zunz & Denis Terrien 34 Laure Debos
“It has become impossible to separate Customer-centric strategy: pitfalls to
meaning and growth” avoid and quick wins to secure
At the end of the first lockdown, 2020 seemed like a
11 Luca Solca Déborah Marino
perilous year for luxury houses. Consumer confidence
37
“Luxury houses must streamline their In China, the enchantment that money was low, stores were closing their doors, fashion weeks
physical networks” can’t buy (anymore) went digital by mandate, with no beautiful clothes in
the front rows. Fortunately, the year ended with an
14 Chapter 2 • Reinventing the customer 41 Generation Z, a taste for unadorned encouraging rebound, proving that the major luxury
relationship luxury houses have more than one trick up their sleeve.
16 Nicolas André 44 Values are no longer a luxury
At Epsilon, Publicis Luxe and Salesforce, we believe
Data for a new customer relationship
that every crisis is an opportunity to learn and evolve
towards new, more efficient and more resilient models.
18 The return of clienteling in luxury Salesforce, the global leader in That’s why we turned to the experts to discover their
CRM, enables companies of all
sizes and in all industries to drive analysis of the situation. For these experts, major
20 David Nijaki their digital transformation and luxury houses must step up their efforts to redesign
Mercedes-Benz: “Unifying data is a gain a 360-degree view of their
capital challenge” customers. the customer experience. Data will fuel customer
relationships over the long term, applying all the charm
23 Breitling in the time of customer Publicis Luxe aims to work with of customer care across every stage in the customer
luxury brands to create innovative
advocacy experiences that enrich products,
experience. Brick-and-mortar storefronts and online
services and storytelling to create shopping sites are converging through an omnichannel
a special emotion in every moment
25 Accor Luxe & Premium consolidate data and build unique relationships over
logic.
for the customer experience time.
While the big luxury houses have already embraced
26 Arthur Barbey these new values, many challenges still remain: avoiding
Epsilon France is the Publicis
Omnichannel: technology to kick-start Group’s data marketing entity the pitfalls associated with omnichannel strategies,
the customer relationship with 750 Adtech and Martech
employees. Its mission is to help interacting authentically with the powerful Generation
brands sustain their growth by Z, understanding the changing expectations of Chinese
30 Brunello Cucinelli, Delvaux, Hotel Group leveraging their data assets and
Omnichannel, a necessary luxury quality customer relationships consumers, committing to environmental and social
within a world dominated by guarantees... Discover these trends now in the following
platforms.
pages.
Photo credits: ©Ryoji Iwata on Unsplash, ©Joachim Lesne on Unsplash, ©Flaunter LI on Unsplash, ©Ke Atlas on Unsplash, ©Olive on Unsplash,
©Markus Spiske on Unsplash, ©Hunters Race on Unsplash Enjoy the read.
02 03
TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
CHAPTER 1
THE LUXURY
SECTOR FACED
WITH THE
HEALTH CRISIS
ALTHOUGH THE LUXURY SECTOR ENJOYED A
CLEAR REBOUND IN THE FOURTH QUARTER OF
2020, THE HEALTH CRISIS HAS NONETHELESS
SHIFTED THE BALANCE , TURNING STRATEGIC
INTUITIONS INTO CERTAINTIES. FOR THE MAJOR
LUXURY HOUSES, IT HAS BECOME VITAL TO
FOCUS THEIR EFFORTS ON THE CUSTOMER
EXPERIENCE AND AN OMNICHANNEL APPROACH,
WHILE STREAMLINING THEIR STORE NETWORKS.
04 05
TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
“IT HAS BECOME Beyond its severe financial
consequences, is the Covid-19
On the business side, the drop in
tourism (especially from China)
IMPOSSIBLE TO SEPARATE crisis also calling into question
the standard business model at
has a direct impact on store
networks. How does this change
MEANING AND GROWTH” luxury houses? the strategies of luxury houses?
Nicolas Zunz: This is one of the D. T.: The current crisis has
key lessons from the current revealed the value of having
crisis: customers are increasingly a centralized IT and global
looking for meaning in all their marketing organization. Some
purchases. Though it applies houses were better equipped
across every sector, this trend than others to absorb the shock
is even more pronounced in the of this crisis. They were able to
luxury sector, which is expected bounce back quickly and focus
to be exemplary. This is even their marketing communications
more true for Generation Z, which efforts on regions that were less
will account for at least half of affected by the health crisis. We
luxury purchases in 20 years. should remember that the luxury
For this generation, a brand’s lack industry, especially hospitality,
Nicolas Zunz Denis Terrien of ethics or commitments may is used to geopolitical crises
Vice President of Publicis Executive Vice President represent a true casus belli. leading to lockdowns across
Groupe in France and Southern Europe at entire regions. When tourists no
President of Epsilon France Salesforce longer travel, we have to know
Denis Terrien: Faced with rising
social inequality around the world, how to reach them in their home
luxury brands, perceived as being countries!
privileged services, must show
As e-commerce emerges as an essential growth
vigilance and amplify their efforts.
driver during the crisis impacting the luxury sector,
Covid-19 has urged the luxury
luxury houses must focus their efforts on the
sector to redefine itself. More than
customer experience and omnichannel approach,
ever, it must find ways to present
without compromising their values. We hear from
itself clearly in order to generate
Nicolas Zunz, Vice President of Publicis Groupe in
interest rather than distrust.
France and President of Epsilon France, and Denis
Today, it has become impossible
Terrien, Executive Vice President Southern Europe at
to separate meaning and growth.
Salesforce.
06 07
TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
What growth drivers should be experience online as in-store, Are you optimistic about the
preferred? meaning an ultra-personalized luxury sector’s ability to succeed
experience. In many cases, in its digital transformation?
N.Z.: E-commerce is the preferred brands have yet to offer even a
growth driver. Today, it represents personalized homepage for their N.Z.: I’m fairly optimistic because
more than 10% of revenue at regular customers. consumers are much less hesitant
luxury houses*, although it was to use digital than before, even for
non-existent 15 years ago. It is a D. T.: We are seeing that luxury big purchases. Ten years ago, no
completely exponential market. is no longer an exception to the one would have bet that $1,000
However, I don’t believe that notion that service is just as dresses could be sold online
luxury is behind in this area. Recall important as the product. Product without a fitting. Today, live sales
the creation of Net-a-porter in the quality must be combined with for luxury goods are booming
2000s, the first Hermès website the best possible customer in China. Moreover, luxury
in 2001, Farfetch in 2007, Vestiaire experience, both during and customers are more than willing
Collective in 2009... Very few after the sale. It’s not just about to share their data. Studies show
sectors have such an e-commerce sales, but also the customer that 45%* feel that using their
ecosystem with direct-to- journey: the customer journey is personal information is crucial for
consumer, wholesale, rental and an omnichannel adventure, both enhancing their brand experience.
now even resale platforms. It was virtual and physical. We have to
consumers who were not ready develop a 360-degree view of To keep up with the desires of
to shop online for products as a customer’s entire life with a a mobile and evolving clientele
complex as luxury goods. This company. It’s truly exciting. and evolving customer base,
resistance to e-commerce is it’s essential to own and master
disappearing. certain technologies. That’s where
Salesforce’s tools and support can
In my view, if there is any delay, it make a big difference.
would be in the digital customer
experience. Luxury houses must
find a way to offer the same
*Source: BCG x Tencent Digital
Luxury Report
08 09
TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
“LUXURY HOUSES MUST
What advice do you have for
brands trying to engage their
customers?
The current
D. T.: The burning question of
challenge for luxury STREAMLINE THEIR
the moment is how to better
connect with customers in a
brands is to match
the experience and PHYSICAL NETWORKS”
luxury sector where the balance personalization
between physical and virtual sales
is shifting. At Salesforce, we are
of pure players
fully capable of helping luxury and digital native Luca Solca, Managing Director Luxury
houses combine the two, within a vertical brands. Goods at Bernstein, analyzes the
single system. That’s our business: impact of the Covid-19 crisis on physical
enabling companies to better store networks operated by luxury
connect with their employees and Nicolas Zunz houses. He also outlines the potential
customers. This connection has opportunities and risks of shifting to
N.Z.: The current challenge for
become more crucial than ever digital.
luxury brands is to match the
since the start of the health crisis.
experience and personalization of
pure players and DNVBs (digital
Products will no longer sell native vertical brands). These new
themselves. Without taking experiences have become the
anything away from their intrinsic standard and norm for Millennials With the crisis, the future of luxury is
quality, they must be paired who are demanding the same certainly digital, but will the future of
with a strong and engaging experience in the luxury sector. luxury houses remain physical?
multi-channel experience for This is a huge challenge for luxury
the customer. When a customer houses, which have traditionally Luca Solca: Yes. Consumer purchases
walks through the doors of a relied on customers coming to have massively shifted online due to
store, the salesperson who greets them. Now it’s their turn. This is a the crisis and luxury houses must now
them must be able to retrace cultural revolution that has only streamline their physical networks at a
their entire relationship with just begun. much faster pace than expected. How?
the brand over the past several
By focusing on a leaner network that
years, whether physical or virtual,
is more impactful and more deeply
anywhere in the world.
rooted in their DNA – like Apple, whose
Luca Solca products and points of sale all speak
Managing Director Luxury Goods at with one voice.
Bernstein
10 11TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
Luxury houses have long favored What are the opportunities and Lastly, by accelerating digital We are witnessing an extremely
vast flagship stores. In my risks involved when brands shift distribution, the Covid-19 crisis rapid evolution. The crisis and
opinion, we need to question to digital? has raised a major issue: price scarcity of Chinese consumers
that model. We should not discipline. Pricing should be have only accelerated these
be asking ourselves if a store L.S.: Customers have simple identical both in stores and trends. It’s like we just
looks luxurious enough, but if expectations. They want to online, including on multi-brand experienced five years of
it conveys the right values. For have the same experience both platforms like Farfetch. evolution in only six months.
example, Fendi recently opened online and offline. For brands,
a full studio inside its Rome store. this means accelerating their Regarding the rise of digital,
It’s a brilliant idea in terms of omnichannel approach in order are we seeing different
customer experience. to recognize the customer at strategies emerge in different
each stage of their journey. In geographical regions?
What has changed is that it is terms of logistics, however, the
no longer possible to do the sector should not try to reinvent L.S.: Until now, China has enjoyed
same thing as 15 years ago, what others are already doing a huge lead, as exemplified by
when luxury houses built their very well (such as Amazon or the Luxury Pavilion launched
networks with identical stores Alibaba, which provide same-day in 2017 by Tmall, the Alibaba
from one capital to the next. or next-day delivery). For reasons Group’s marketplace. This
For customers, a standardized of scale, these operational upscale site offers a selection
store almost always means a aspects are not within the reach of exceptional brands. It’s a
bad experience. We need to give of luxury houses. The same goes concept that has proven itself
them good reasons to visit stores for payment, where WeChat and is now inspiring several
when they travel. This is precisely Pay and AliPay offer integrated American giants. Amazon,
what Dior is trying to do by and immediate experiences Facebook and Instagram are
reopening its historic address on that have set the model. Luxury following the example of Tencent
Avenue Montaigne in 2021, with houses should rely on the major and Alibaba by stepping into
spaces dedicated to ready-to- operators and focus on what multi-brand digital luxury
wear, lounges for haute couture they do best: experience and distribution. In a way, everyone is
and a restaurant that opens onto packaging. aligning themselves with Chinese
a garden. standards.
12 13TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
CHAPTER 2
REINVENTING
CUSTOMER
RELATIONS
WHAT IF LOYALTY IS A GROWING VALUE? THE
DAYS OF ONE-TIME RELATIONSHIPS BETWEEN
LUXURY BRANDS ARE OVER. ON DIGITAL
CHANNELS AS WELL AS IN STORES, DATA IS
FUELING CUSTOMER RELATIONSHIPS OVER
THE LONG TERM AND AT EVERY STEP OF THE
JOURNEY. DID YOU SAY OMNICHANNEL?
14 15TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
Given this, where can they start
DATA FOR A collecting this precious data?
Luxury houses, especially in the
Technology and data are not
NEW CUSTOMER jewelry and watchmaking sectors,
do not always have physical enough. It’s above all a race
RELATIONSHIP points of contact with their
customers. And when they do,
for insight, for understanding
customer expectations and
they are not always designed to
encourage customers to return or
demands.
“A glaring lack of customer data.” For Nicolas André, Director
of Strategic Planning at Epsilon France, the situation is clear. As to collect their data.
luxury brands set out to conquer online customers, it is imperative
that they fill their tanks with data, the true fuel of a personalized “However, luxury houses no
This is good news for luxury
customer relationship. longer have a choice: they must
houses in their battle against
become data champions,” says
digital giants. “Amazon, which has
André. This is a major challenge
A customer database is an asset as its sights set on the luxury sector,
for a sector that is traditionally
essential as it is difficult to build. In this does not generate any emotion
not very tech-savvy and is
area, luxury houses are often starting and is ranked by Generation
unfamiliar with data marketing,
from scratch. They need to move on Z as one of the most boring
where many players, despite their
from the one-shot aspect of one-time companies. Luxury, with its DNA
financial power, are starting from
relationships they have long had with woven with passion and values,
scratch.
tourist clientele, particularly from China, has a bright future ahead.”
who often walk out the door with a
MORE THAN A RACE FOR
beautiful piece, never to come back.
TECHNOLOGY, A RACE FOR
INSIGHT
Nicolas André With the onset of Covid-19, luxury houses
Director of Strategic soon found themselves cut off from this
More than just a shift to
Planning at Epsilon France foreign clientele, which accounted for
e-commerce, the priority is
up to 70% of their sales. “The European
to move from an ephemeral
luxury houses must today capitalize
customer relationship to one
on their domestic markets by turning
that is deep and lasting. “To
towards a local clientele,” explains
do this, technology and data
Nicolas André, “thereby reducing their
are not enough,” says André.
dependence on foreign buyers.”
“It’s above all a race for insight,
for understanding customer
expectations and demands.”
16 17TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
Clienteling in the data age is first
and foremost a tool allowing
companies to connect with
customers with perfectly updated
Classic phone calls had fallen
out of fashion in favor of
THE RETURN OF files, in order to address them in
a personalized way, in all stores, hip events and engagement
CLIENTELING IN even if their dedicated consultant
is absent. At the point of sale,
strategies. It is now valued as
the preferred vehicle for one-
LUXURY this involves sharing customer
data, with their consent, in on-one contact, especially
order to feed the CRM with total for VIP customers in the
confidence. To make future visits luxury world.
What’s better than knowing a customer? At a time when customer even more personalized, it is also
Recognizing a customer. As the industry goes relations need a total overhaul, possible to also add wish lists,
through its digital transformation, luxury clienteling is experiencing a measurements, etc.
houses are revisiting the recipe that has long resurgence of interest among Emanuela Prandelli
underpinned their success: the fine art of luxury brands. Clienteling is the Using a fully detailed database, it Associate Professor at SDA Bocconi School of
clienteling. fine art of long-term customer becomes possible to orchestrate Management, quoted by Fashion Network
relationships, nurtured by a marketing campaigns that
detailed knowledge of their proactively address the 20%
preferences and purchasing of customers with the highest
behavior. This is a relationship of spending power by offering
trust and reciprocity, in which the new services. For example, a
consumer and the brand know custom shoe designer can ensure
and recognize each other. In customer satisfaction by sending
short, luxury brands must be able a personalized email a few weeks
to offer the customer a friendly, after the purchase. Even by email,
intimate relationship. In short, the designer can provide valuable
a hyper-premium relationship. maintenance tips, or even suggest
Mass-market brands have already a new appointment in store for a
understood that this is the best personalized polish or repair, all
way to respond to Millennials thanks to Salesforce Marketing
desire for personalization. This Cloud.
means luxury brands must raise
the bar even higher.
18 19TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
For non-financed customers,
MERCEDES-BENZ:
What paths do your customers
take when purchasing a new data is crucial for analyzing
purchasing paths. It allows us
“UNIFYING DATA IS A
vehicle?
to detect purchase intentions
and encourage renewals, thanks
CAPITAL CHALLENGE”
Ninety percent of them start their
journey on the digital platform to a history of interactions with
before visiting a dealership. the brand and analysis of online
Accelerated by the health behavior. We use this data to
crisis, digitization has become increase the intensity of our
an essential complement to a communications to relevant
physical network, which remains customers.
of vital importance. Moreover,
manufacturers with online For these reasons, we invest in
sales tools have weathered the digital and CRM in order to send
crisis much better. Nowadays, each customer personalized
customers get information online, commercial offers, test drive
make a short list of two or three suggestions and more. Once
brands, only to visit one or two in identified, leads are shared with
the end. Across all manufacturers, our network of dealers, who are
60% of customers make up responsible for conversion.
It’s a genuine race against the clock. their minds within a month. The
To convince their customers to remain challenge for Mercedes-Benz is How do your prospects begin
loyal, premium car manufacturers to make it onto this list in a very their purchasing journey?
have an extremely short window of short timeframe.
opportunity when customers are
The main channel our prospects
changing vehicles: a few weeks at most. How do you use data to detect use is our official website,
But thanks to data, they can make purchase intentions and interact www.mercedes-benz.fr. This is
sure they have the best position at the with your targets? where they can find complete
starting line. This is a key issue, even
information about our line. Social
as loyalty rates vary between 50% and
At Mercedes-Benz, a large share media also has an influence,
65% according to studies. David Nijaki,
of our customers have signed although it is only perceived as a
Marketing and Communication Manager
a financing contract, so we priority source of information by
at Mercedes-Benz, explains.
can anticipate this window of 20% of our customers. However,
David Nijaki opportunity. We know when we Facebook users have become
Marketing and Communication Manager at need to act to convince them to older and its audience is more
Mercedes-Benz France buy with us again. in line with our targets. This
platform has therefore become
20 21TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
a source of traffic in its own right This real-time analysis is also
with interesting conversion rates.
On Instagram, our communication
important for orchestrating
communication actions between
BREITLING IN THE TIME OF
goals have more to do with brand
presence and engagement than
the various sales and after-sales
activities and our network. Let’s
CUSTOMER ADVOCACY
the bottom of the funnel. take the example of a customer
who may wish to receive offers
Do you feel that the issue today for the maintenance of their
In the luxury sector, where word of In a scientific way, Breitling’s marketing
is no longer data collection, but vehicle while negotiating with a
mouth plays a decisive role, the famous and data teams have analyzed the
real-time data analysis? distributor for a renewal... This is
Swiss watchmaker is shaking up its customer data collected in the boutique
a faux pas to avoid, especially in a
customer advocacy strategy. Here are network over the past 10 years, as well
pivotal moment.
We focus a lot on analysis, but some very conclusive first results on its as the data generated by its internet
data collection remains important. e-commerce sales. marketing campaigns. On this basis,
The GDPR law has shaken up our This unification of data
Breitling is able to personalize its
practices, particularly in terms throughout the customer journey
In a recent interview, Breitling CEO communications and analyze weak
of how long data is retained. A is highly complex, but essential. A
Georges Kern pointed out that 70% of signals that predict purchase intentions
customer updates their vehicle key challenge.
purchases are influenced by information based on customer history. The result?
every three-to-six years. To retain Increased efficiency of marketing efforts
circulating on the web. To reach its
their data, we need to continue aimed at improving up-sell and cross-sell.
targets, the watchmaker has chosen to
90 %
to interact with them. The legal
rely on the ability of its customers to
environment, especially regarding
become ambassadors, in other words Since implementing this strategy in 2017,
cookies, may also penalize us for
customer advocates, a trend that is Breitling has recorded a sharp rise in
collecting and analyzing data to
becoming increasingly important in the e-commerce sales, which represent 15%
reach the right people at the right
strategies of luxury houses. For these of its total sales (by adding those of its
time.
houses, it has become an invaluable e-commerce site and those of it of its
OF CUSTOMERS START
central asset, together with brand resellers). And it’s only just begun: “We
THEIR BUYING PATH ON now intend to triple our online sales,”
prestige and the notoriety of its creative
DIGITAL director. says Antonio Carriero, Chief Digital &
Technology Officer at Breitling.
22 23SALESFORCE, PUBLICIS LUXE & EPSILON
A FLAWLESS CUSTOMER JOURNEY
ACCOR LUXE & PREMIUM
CONSOLIDATE DATA
01 07
FOR THE CUSTOMER
Infatuation. The customer discovers the
brand via a social network and makes a first
Assessment. The customer is active on
social media and mentions the brand, their EXPERIENCE
purchase. feedback is identified and enriches their
profile.
02 Within the Accor galaxy, the Luxury & “Time spent updating and delivering
Premium brands represent a portfolio reports went from 10 days to just two
Invitation. The brand of nine world-class brands and over hours,” notes Nicolas Leseurre, Director
personally invites the customer 600 hotels. To leverage its data- and of Planning and Analytics. “We also used
to a fashion show. A personal 06
offer-optimized experiences, the Tableau Bridge (which connects Tableau
shopper makes sure the
upscale hotel giant has chosen to Online to firewall-protected data sources)
customer attends. Regular updates from order to delivery.
deploy Tableau. to create a single reporting process for
The customer is regularly updated at each
stage in product delivery. Each update all hotels, further amplifying its impact
includes personalized content (new looks, “For our Luxury & Premium brands, across the company.”
an inside look at the brand’s studios).
we had already succeeded in unifying
data as diverse as finance, quality, Accor Luxury & Premium end users now
distribution and social media with have quick and easy access to a wide
Tableau Online,” recalls Geoffray range of diversified key performance
03 Maugin, SVP Global Guest Experience indicators in Tableau Online, giving them
05
& Business Performance. “Soon, we will a 360 degree vision of every aspect in a
add data sources from other business single space, as opposed to using several
Personalized support. A digital platform
An immersive experience.
allows the customer to attend the fashion areas such as sustainability, loyalty or platforms like before.
The customer meets their
show with their personal shopper, who food and beverage sourcing. These
personal shopper in the
provides advice and prepares a shopping list. consolidated insights on the country,
brand’s private showroom. “We’ve also used Tableau Online’s
Using augmented reality, regional and global levels will help us extensive functionality to reorganize the
the customer can visualize drive better performance at all levels, way we build and present our reports.
products that are still being
04 which is significant.” Centralizing data With this visualization, we can count on
made.
through Tableau Online has quickly led to tables that will speak to everyone.”
Order confirmed! The customer can find their spectacular improvements.
selection on the brand’s application. They
can choose which pieces they like, indicate a
delivery address and confirm their order.
25TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
TECHNOLOGY
As market trends and consumer habits
TO KICKSTART show, the ultra-personalized experience
THE CUSTOMER across all channels is a priority for houses.
RELATIONSHIP
Throughout their buying journey, At the point of sale, a digital
consumers have become clienteling application is
accustomed to switching from one Impeccable, fast, pertinent and a practical way to build
channel to another, depending on efficient customer service has a personalized customer
what they find most convenient. become much more than a mere relationship with immediate
Adding to this is an aspect that advantage for companies. It has access to customer files and
is specific to luxury customers: become a requirement and a inventory. As a result, sales
their ability to jet from one capital criterion of choice for consumers, staff can get answers to all
to another (when world health in the same way as product or their questions and collect new
allows it). This leaves only one service quality. information that can be used
Arthur Barbey answer: commit to an omnichannel for future visits as well as for
Distinguished Solution strategy. customer service. Sales staff
DATA, THE FUEL OF A
Engineer Salesforce can even use this tool to keep in
PERSONALIZED RELATIONSHIP
It is widely known that luxury touch by sending emails or texts
customers demand highly to customers, according to their
To meet this challenge, companies
personalized service, immediate preferences. And in the event
collect a lot of information about
attention to their requests and an of turnover or absence within
their customers throughout
equally fast response. What was the teams, there is no risk that
their interactions, thanks to their
already true in stores is now true a customer will be left on their
personal shoppers working in
online. And this expanded scope of own, since all their information is
store and remotely. Customer
action makes the task at hand for centralized in the CRM and easily
activity on social media and
luxury houses considerably more accessible to everyone.
e-commerce sites also provide
difficult. Their customers will not
valuable indicators for gauging
wait, they do not expect to speak All this data also plays a decisive
their tastes, expectations and
to several representatives, and they role in customer acquisition
satisfaction.
certainly don’t want to repeat their and activation, as well as
requests at each step. personalized customer journeys
26 27TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
and retargeting strategies. On the from the nearest store, to reduce campaign or in during customer
digital side, artificial intelligence
can also support teams.
wait times and shipping costs.
In this way, thanks to the OMS,
service, the experience must be
the same for the consumer.
+ 11
By offering style
the company can respond to the
most frequent requests of its Using a digital platform like
POINTS
recommendations adapted to customers: to pick up an item in Salesforce makes it possible to
the customer profile, marketing the nearest store, to know if an tailor marketing campaigns to a The share of online luxury
item is available in a certain color
campaigns, purchase journey and customer’s profile and journey. goods purchases increased
intentions, AI can increase the and size, and if it is possible to Customer service can converse from 12% in 2019 to 23% in
customer’s shopping cart through have it delivered within a day. directly with the consumer on
2020, reaching 49 billion
cross-selling logic. messaging channels such as
A SEAMLESS OMNICHANNEL Messenger or WhatsApp. It also
euros (Bain & Company,
UNIFIED INVENTORY, SATISFIED EXPERIENCE contributes to drive-to-store Luxury Study 2020).
CUSTOMERS advertising, thus facilitating the
selling ceremony. It can also
2025
As market trends and consumer
habits show, this ultra- function as a source of profit
By using an order management
personalized experience across by taking the order directly
system (OMS), companies can
every channel is a priority for on the same channel through
easily handle exceptionally
luxury houses, whether it is native integration of Salesforce By this date, online sales
complex processes in a way
that speeds up purchasing. It on digital channels like the e-commerce, customer service will have become the main
provides a quick and easy way to e-commerce site, in store with and OMS systems with the purchasing channel for
sales staff, following a marketing payment ecosystem. luxury products, according
answer all the questions on their
customers’ lips: “Is the product I to Bain & Company.
want in stock?”; “Is the product I
want available for pickup in store
today?”; “How can I benefit from
concierge service?” As market trends
and consumer
A crucial link in any omnichannel habits show, the
approach, the OMS system
organizes distribution so that the
ultra-personalized
product reaches the customer as experience across all
quickly as possible. It streamlines channels is a priority
shipments by analyzing store and for houses.
warehouse inventories. In this
way, the OMS system facilitates
ship-from-store processes to
deliver to customers directly
28 29TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
To achieve its digital ambitions, “Our ambition is to have a comprehensive
OMNICHANNEL, Delvaux has deployed Sales Cloud
and Marketing Cloud, as well as an
view of our customers and all their
interactions with the Chinachem
A NECESSARY LUXURY integrated personalized application,
Diamond, dedicated to its store staff.
group, whether they stay in a hotel,
visit a shopping mall or support a
Like many companies, the Covid-19 charity organization,” explains Sylvia
pandemic accelerated Delvaux’s move Chung, Deputy CEO of the Hotel
to digital, and the data centralized in Group. “Salesforce helps us gain new
Whether they operate in the leather, It’s not easy to roll out the authenticity
Salesforce provided it with real-time insights from this data to improve the
fashion or hotel sectors, the leading of a company that is closely tied to its
information to help adapt its strategy. As effectiveness of our campaigns and
players in luxury goods are investing home territory, Umbria, on a global scale.
a result, despite closing its stores during enhance the customer experience.”
in omnichannel strategies to offer the With Salesforce, Brunello Cucinelli has
lockdown, staff were able to continue
online experience their customers achieved this feat with a digital storefront
maintaining customer relationships and Service Cloud provides a comprehensive
demand. Here are some inspiring available in 50 countries. Thanks to
sell remotely through the Diamond app. view of each customer. Hotel Group can
examples. Marketing Cloud, every communication
use this information to design, develop,
has a personal dimension, and recipients
Digital marketing is an important part of personalize and measure all future
Brunello Cucinelli • Digital with more often respond to e-mails by addressing
Delvaux’s strategy. marketing campaigns through Marketing
soul Brunello directly. The result: since
“With richer information, we can bring Cloud. “In the past, we would send very
migrating the company’s e-commerce to
more value-added content to our standard emails to promote rooms
Commerce Cloud in 2016, the company
“If you don’t accept the changes of your customers, for example by sending them and rates. Now, the marketing is much
has quadrupled its online revenue.
time, you will probably miss out on most details on products that match their past more personalized and dynamic, while
of them.” purchases or browsing history,” says Paul saving our teams a lot of time,” says Jack
Delvaux • An online experience as
Flacassier, Head of CRM. Tam, Director of Innovation and Digital
perfect as in-store
For the Italian stylist and entrepreneur Transformation at Hotel Group.
Brunello Cucinelli, new technologies must Hotel Group • Dynamic and
be used but “in a graceful way, without Founded in Belgium in 1829, Delvaux is
personalized marketing
stealing our souls”. With Salesforce, the the oldest luxury leather goods company
iconic Italian luxury company has found a in the world and now has 42 stores in
Hotel Group consists of seven hotel
way to marry craftsmanship and service Europe, Asia and the United States.
properties and serviced apartments
with technology that helps employees Upon taking the helm of the company in
in Hong Kong – or more than 2,800
elevate the luxury experience. 2019, CEO Marco Probst implemented a
rooms. To provide a truly personalized
strategy to digitize the company in order
experience, the subsidiary of the
to meet customers’ growing expectations
“Digital is by nature a little cold, a little Chinachem real estate group needed a
for omnichannel engagement. “We
impersonal,” says Francesca Picchiò, solution to centralize its data.
wanted to gain complete visibility into
Digital & CRM Program Manager. “Thanks
the customer journey and recreate our
to Salesforce, we’ve been able to build
unique and refined boutique experience
customer journeys that are as close as
across all digital channels,” says Nelson
possible to our customers’ expectations
Bastos, Delvaux’s CIO.
and desires.”
30 31TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
CHAPTER 3
THE FINE
CHALLENGES
OF LUXURY
HOUSES
THE ROAD IS STRAIGHT BUT THE INCLINE IS
STEEP. EMBARKING ON AN OMNICHANNEL
STRATEGY, TACTFULLY ADDRESSING THE
POWERFUL GENERATION Z, UNDERSTANDING
THE CHANGING EXPECTATIONS OF CHINESE
CONSUMERS, PLEDGING A COMMITMENT TO THE
ENVIRONMENT AND SOCIETY... LUXURY BRANDS
FACE MANY DIFFERENT CHALLENGES.
32 33TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
CUSTOMER-CENTRIC
STRATEGY: PITFALLS TO
AVOID AND QUICK WINS moment they connect online. This
TO SECURE means having information on their
measurements, favorite cuts and The houses that are
colors, latest purchases, products doing well are the ones
they’ve liked on Instagram and that have invested in
others that leave them cold, all at
their CRM
their fingertips.
“Luxury house customers are, by There are many pitfalls to avoid
With the Covid-19 crisis and the rise nature, hyper demanding, hyper when starting from scratch.
of Generation Z, luxury brands are no mobile, highly informed and multi- Setting up a CRM impacts the
longer just an object of desire. They channel. We need to document all fundamental organization of
now have to take the perilous step of their interactions and purchases the company, notably mixing
making the first move. To make sure the to develop a hyper-personalized business, technological and
odds are in their favor, they can rely on relationship and avoid, for legal. “Today, the houses that
data. Here is our guide. example, offering a product that are doing well are the ones that
has already been purchased,” already invested in CRM five to
says Laure Debos, Executive Vice 10 years ago and have had the
President of Epsilon France. time to improve, rethink their
Laure Debos
While widespread use of CRM is already distribution network and train
Executive Vice President of
Epsilon France a matter of fact for many players in the “Today, it is difficult for companies their employees. In essence,
retail industry, the same is not always to set this all up on their own. digital transformation is a cross-
true for luxury houses. But the current They will only succeed if they functional, global project that
health crisis is about to change all that. rely on partners, even if it means requires the support of top
With online sales soaring, luxury players bringing this expertise back in- management.”
are rethinking clienteling and long-term house at a later stage, perhaps
relationships. To do so, they must be after two or three years of The idea of putting the customer
able to recognize their customers at operation.” at the center was not always the
every interaction, from the moment they norm in the luxury sector. Since
walk through the door of a store, to the the 19th century, it has cultivated
distance and secrecy, an elitist
34 35TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
approach. Today, the digital How can they interact effectively
revolution, Generation Z and the
Covid-19 crisis are reversing the
with customers on social media?
How can they scale up through an
IN CHINA,
poles: “They impose a logic of
proximity rather than distance, of
omnichannel strategy? THE ENCHANTMENT
transparency rather than opacity,
of interactivity rather than one-
To do all this, companies must THAT MONEY CAN’T BUY
(ANYMORE)
break down organizational silos.
way relationships. It’s a disruption. Sharing information between
We are moving from a brand- businesses requires a single
centric logic to a customer-centric customer database, a customer
logic, even if luxury may never go management platform that
as far as retail.” guarantees access to data for all
employees from a single entry
QUICK WINS point, a single platform. A single After the bling years, young Chinese
source of truth. consumers are adopting a more informed
How many years will it take relationship with luxury houses. Does this
to get there? It depends on mean that the balance of power has shifted?
the size of the house and its An interview with Déborah Marino, Director of
organization. Under one year is Strategic Planning at Publicis Luxe.
unrealistic. But between 12 and
36 months, anything is possible.
How do young Chinese consumers define
After the evaluation (two to four
luxury?
months), a phase of vision based
on different methodologies Déborah Marino
The Covid-19 crisis Director of Strategic For a growing proportion of young, educated
such as design thinking. It is
then necessary to embark on imposes a logic of Planning at Publicis Luxe and affluent Chinese “influencers”, luxury is no
the bold task of explaining this proximity rather than longer just something that can be bought. Far
vision by mobilizing executive distance, of transparency from being an exception, in a country where
management. A road map will material success remains a major objective, this
rather than opacity, of new “golden generation” roots its unique nature
allow companies to achieve
various quick wins. How can interactivity rather than in its rejection of a strictly materialistic vision of
they quickly optimize e-mailing one-way relationships. luxury, which it considers inconsistent with its
campaigns? How can they It’s a disruption. values, passions and aspirations. In the eyes of
improve customer recognition? these new consumers, social and cultural capital
is as important as economic and financial capital.
That allows them to give meaning to their
purchases.
36 37TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
Simply put, they don’t just want
to feel rich. For them, the true
mark of success is to get what
ONLY 20%
money can’t buy. For example,
exclusive access to an auction, OF GENERATION Z IN THE US SAY THEY ARE FANS
to a network, or to specific OF LUXURY ACCORDING TO THE #ZGENERATION
knowledge and skills... This is STUDY CONDUCTED BY IFOP AND DARKPLANNEUR
the idea that “money can’t buy (2018).
everything” – that true riches are
knowledge, culture and privilege,
not just the fact of being able
to acquire an object. They want This new vision of luxury is story and the more sophisticated
purchasing knowledge instead of accompanied by another the journey, the richer things
just purchasing power. phenomenon: the rise and become for the brand. It may
justification of a new line of seem counterintuitive to Western
upscale Chinese and Asian brands eyes, but the customer journey in
Where do these developments
and products. Korean luxury China is like an adventure, where
stem from?
brands – in fashion, beauty and the notions of discovery and
even culture – are very successful learning are key.
In China, we are currently
in China. We can even talk about
witnessing a true cultural
Chinese pride. China no longer In the luxury sector in China,
reversal among the most socially
has an inferiority complex. It is no companies should not sell
influential classes and, in terms
longer the world’s factory and the but tell. Each journey must be
of consumption, the rise of
Chinese no longer feel the need to personalized, structured and
discretion or understatement.
go abroad to buy luxury products. enriched to the extreme. For
For them, the signs of success no
Their history, know-how and example, a purchase process
longer lie in the mere possession
values are also fabulous sources may last several years. Behind
of money. The anti-corruption
of value for a more nationalistic each object is a long history and
campaign launched by Xi Jinping
consumer. legacy. But be careful: while the
in 2012 has left its mark on
ecosystems must be complex, the
Chinese society and its elites.
You explain that in China, “it is transaction must remain simple
The limitless and ostentatious
no longer necessary to sell but and easy. In short, companies
staging of luxury brands is no
to tell”. What does this mean? must market products with a
longer successful. The purchase
beautiful story, like a Gallimard
as an end in itself is no longer
This generation is very book, combined with a simple
appreciated by this new, more
comfortable with the complex transaction like on Amazon.
educated generation, which feels
it knows why it chooses a certain ecosystems typical of the media
brand, product or experience. journey in China and Asia in
general. The more layered the
38 39TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
Listening to you, China is quite a ourselves if the new Chinese
challenge for luxury houses … way of telling the story of luxury
products will be the future of the
GENERATION Z,
Yes, China is a real laboratory sector’s communication in the
West.
A TASTE FOR
UNADORNED LUXURY
for them. It’s necessary to
observe behavioral changes
closely because it is impossible
to anticipate the creation of new
formats. In this market, there is a
need for an avant-garde approach Breaking with Millennials’ affinity groups, as Eric Briones
that demands incredible effort fascination for all that glitters, and Nicolas André described
and imagination from brands. Generation Z is forcing luxury perfectly in their recent book,
houses not only to rethink Le Choc Z (Dunod, 2020). The
To conclude, I think it is absolutely their values, but also their Zs unite around the values of
necessary to establish an pricing policies. A necessary inclusiveness, gender neutrality,
observatory on the cultural reconsideration for the future. entrepreneurship... If Millennials
distribution of certain practices. betrayed (especially on social
What luxury houses must do in They are called Generation Z. media) an unbridled adoration
China to attract these new types They were born between 1995 for anything remotely resembling
of consumers will generate a and 2010 and will account luxury, Generation Z is distancing
unique skillset. We can then ask for one-third of the world’s itself from the term. Less
population in 2020. Taken impressionable, often less spendy,
on their own, Zs spend the they don’t hesitate to question
equivalent of 3 trillion euros luxury brands by putting their
globally each year and, in France, finger where it hurts: values,
a little over 60 billion euros, meaning, price...
according to a study published
in 2019 by OC & C Strategy “The previous generations
Consultants. Its relationship to bought luxury products as if they
luxury? Reasonable. Forget the were entering a sacred temple,”
selfie generation of Millennials. explains Nicolas André, Director
Generation Z is camped out of Strategic Planning at Epsilon
in the world of the future, one France. “For Generation Z, it’s
that is more collective, as they the opposite. It’s up to luxury
navigate seamlessly between to adapt to them.” The good
40 41TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
news is that the great struggle of Secondly, through more WAITING FOR GENERATION
this generation is inclusiveness: sophisticated tools, such as ALPHA
they want a more fluid society, blockchain, which ensure product GENERATION Z NO LONGER
with more freedom, parity and traceability and facilitate the Another major trend: HAS A RELATIONSHIP OF
equality. resale of luxury products between entrepreneurship, which is a FASCINATION WITH LUXURY.
individuals. Also according to leading value for Generation Z. IT PREFERS PRIVATE SALES
The luxury sector is one of the Ifop: 47% of French Zs bought This generation is conscious of AND SECOND-HAND ITEMS.
best placed to provide this luxury goods at private sales, and the role companies must play
fluidity. “For Generation Z, brands 36% bought second-hand luxury to defend causes. This desire
can be game-changers and are goods. for collaboration pushes luxury
better able to bring about change houses to play the (vital) game
than political movements,” says “Luxury houses cannot ignore of inclusivity, like L’Oréal with
André. this trend without running the Nuxe and Biotherm, or LVMH
risk of encouraging counterfeits. with Fenty, alongside the star
THE PRICE OF LUXURY With total cynicism, Generation Rihanna… In doing so, luxury
Z will not hesitate to resort to houses, which have the required
counterfeits if they feel a product cash flow and financial strength,
Generation Z is the first to say
is too expensive.” are getting a facelift and
they no longer want to pay the
accelerating their transformation.
price of luxury: 57% say it is
This generation no longer has a And what if Generation Z gives
too high, according to a study
relationship of fascination with them wings?
conducted by Ifop for the Grand
Prix Stratégies du Luxe 2019. And luxury. In the United States, for
to question the pricing power example, only 20% of young
of luxury is to attack one of its people from Generation Z
sacred pillars. The weapons say they are fans of luxury,
used to do this are now well according to the #ZGeneration
known: the use of second-hand study conducted by Ifop and
goods and the circular economy. Darkplanneur. In other words, you
First, through community sales can still lead a successful life even
platforms (Vinted, Videdressing, if you’re wearing a counterfeit
Vestiaire Collective, etc.). Rolex at age 50.
42 43TOWARDS A MORE CONNECTED AND ENGAGED LUXURY SALESFORCE, PUBLICIS LUXE & EPSILON
During the crisis, Chanel,
VALUES Hermès, LVMH and Kering took
remarkable action. Among
ARE NO their many initiatives, we can
mention the maintenance of
LONGER their employees’ salaries, the
production of masks and hand
A LUXURY sanitizer, as well as donations to
hospitals.
Salesforce shares the same
vision of its responsibility as a
company. “Leaders can no longer
What do venerable luxury afford to separate their business
houses share with a digital goals from the societal issues
transformation pioneer like that surround them,” writes
Salesforce? A lot. Including, Salesforce CEO Marc Benioff in
certainly, a shared responsibility the introduction to Trailblazer, his
to their employees, customers, latest book published in France
ecosystem and the society in 2020.
around them.
“Their mission can no longer be
a binary choice: grow or give,
turn a profit or promote the
common good, innovate or make
our world more livable.” Marc
Benioff is convinced that we are
on the threshold of a revolution in
trust. “Intellectually, we all know
that the moment you put growth
before trust, a problem will
eventually arise. It can happen to
the best of leaders, to the most
respected of companies.”
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