Luxury goods have been around for centuries, and they have evolved significantly in the past decades. In earlier times, luxury goods were considered to be symbols of aristocracy, old money, tradition, unmatched quality, pampering,and so on. While luxury goods still stand for opulence and are associated with the finer things in life, the overall customer experience has changed since then.
What are the challenges faced by luxury brands in terms of customer engagement?
Studies show that by 2024, personal and experiential luxury alone are estimated to be a €1,1260 billion market. Due to the rising number of customers who want to purchase luxury goods as well as the tightening competition, many brands are finding it difficult to provide customers the personalized experience that they desire. Customers pay staggering prices not only to take ownership for the product but also to enjoy a great shopping experience.
Personal relationships are thus crucial if any luxury brand wants to last in the long run. This is especially true in the case of brands that offer products like fine wine, precious jewelry, state of the art gadgets, and so on.
However, trust-based relationships can be harder for luxury brands to make with their customers. This is because of the alarming rates at which counterfeit products are making their way into the global luxury goods market. It is expensive products that are always likely to get forged in general. This means that it is customers who purchase luxury goods that are always more likely to be on the receiving end of counterfeit products. This happens far more often in the wine and jewelry industries than one might expect.
Due to such cases, customers might become apprehensive of buying products from any luxury brand unless they are provided with assurance that their purchases are actually genuine. This can turn out to be a cumbersome task for luxury brands, and failure to do so can stand in the way of forming lasting relationships with customers.
How can luxury brands make use of technology to build strong customer relationships?
It is possible for brands to form good relationships with customers without the help of technology. However, the fact remains that using technology to do so will help brands to become more efficient and effective in their approach to customers. At present, blockchain technology is the new kid on the block when it comes to the luxury goods industry. Despite skepticism, here are the reasons why blockchain technology is helping luxury brands to build better relationships with their customers
- A brand can convey to its customer the story behind the creation of a particular product:
In general, a customer wants to connect with the product that he/she is buying, especially if it is a luxury item for which a copious amount of money is paid. Authlink allows for brands to implement blockchain technology so that customers can gain instant access to the background information of the products. With a smartphone scan, a customer can take a long look at all the circumstances and effort that went into the creation of the product in his/her hand. This will help in keeping the customer engaged with the brand and its products.
- Brands can provide complete assurance to customers regarding the genuinity of their purchases:
Apart from using Authlink’s services to protect the product’s unique story, brands can also use it to provide detailed information regarding provenance to the customers. Each and every detail of the product’s life cycle, right from when it was born in a factory to when it hit the shelves, can be uploaded digitally. Customers who access the information can make sure that what they are purchasing is entirely authentic. Customers will trust brands that put in extra effort to put their minds at ease.
By making use of blockchain technology with the help of Authlink, brands can form relationships with customers that actually last, and thereby experience greater business growth.