"A study from Cue Connect looked to get inside the mind of millennial shoppers through a survey of 1,000 individuals within the generation, identifying five top consumer profiles in the process. Luxury retailers are failing to transition the customized, high-service experience that big spenders have become accustomed to from the store to their digital channels."
“In a world where almost anyone can have what they want, when they want, how they want it, loyalty is the ultimate currency,” said Berkley Bowen, CEO/founder of Cue Connect. “By fully utilizing shopper intelligence gleaned from important solutions, such as wishlist technology or social sharing tools, retailers can provide a luxury experience to every shopper."
“Unlocking new value from existing shopper behavior leads to higher satisfaction levels, increased site traffic, improved conversion rates and larger basket size and average order value,” he said. “It also allows retailers to employ engagement strategies that put their customer’s feelings first in order to be more empathetic to their wants and needs."
Retailers should know the elite shoppers they're going after in their advertising efforts. AudienceSCAN has the goods on the luxe goods shopper! 4.7% of adults prefer to only buy high-end or luxury brand products. But did you know that 56% of these Luxury Product Shoppers are MEN?
“Unique ways that retailers can reach these Elite Shoppers include, ‘invite-only’ messages for first-looks at new products or opportunities to shop and buy straight from the runway," Sarah Jones wrote in Luxury Daily. "These shoppers also respond to loyalty points and trunk shows on in-season products."
“Given that 66.7 percent of respondents wish that their retailer’s online site had the capabilities to keep track of their favorite brands and sales, retailers should align their personalized activities with customer preferences to avoid early markdowns and shopping cart abandonment.”
"The majority of shoppers, 47.6 percent, say that earning loyalty points make them feel most valued, beating out invites, sale alerts or knowing their name."
Showcase VIP digital offerings in TV commercials. AudienceSCAN reports 40.4% of Luxury Product Shoppers took action after seeing television spots in the past month!
"On the opposite end of the spectrum from the Elite Shopper is the “Bargain Hunter,” who is most focused on getting a good deal for the item they want. These shoppers want notifications when something from their wishlist goes on sale, and it is a way for retailers to foster loyalty among this audience."
"When shopping online, millennials most desire the capability to follow their favorite brands and sales, with 66.7 percent identifying that feature as their top wish."
"Sale messaging is a way to prompt purchases from millennials, as 57.4 percent say that receiving a discount code from a retailer makes them more apt to buy. Additionally, 55.5 percent say that the perceived value of a retailer goes up if it has the best price for a particular item online."
Feature sales and bargains in internet banner ads too. According to AudienceSCAN data, Luxury Product Shoppers are 34% more likely than average shoppers to respond to banner ads.
"The “Frugal Fannie” takes this budget-conscious perspective to an extreme, only buying when she needs to replace something. Since this shopper is more motivated by need than by sales or promotions, a good way to retain her loyalty is to remind her to purchase again when she is likely looking to replace something previously purchased."
"Opposing their frugal counterparts, the “Impulse Buyer” is just looking for a reason to buy. Suggested items and bundling offers are a way to prompt this shopper to add to her cart, as she responds to what is placed in front of her."
"About half of consumers have bought something from the suggested items displayed as they browsed an e‑commerce site."
"Consumers are split almost evenly between being motivated to shop by items they desired going on sale, an absolute need or simply because they were in the mood."
"Social shoppers fit into the last category, seeing shopping as a fun activity to be shared. While this used to mean bringing friends to a physical store for a second opinion, today they are more apt to turn to their social networks for approval before making a purchase."
"About half of consumers say their friends and family have a heavy or some influence on their decision to buy, with those in urban areas twice as likely as their suburban peers to say that their circle has a large impact on their shopping choices."
"Consumers are posting and sharing with their social network, but often they are organizing their desired items away from the e‑commerce experience. While the wishlist holds opportunities for building a profile of a consumer’s interests and taste, 60 percent of millennials have never used this tool."
"Contrary to the idea that millennials are more mindful when it comes to where their wallet goes, only 10 percent of respondents say they most value a retailer’s philanthropy when making a purchase online."