Luxury brands, social media and retail experience

Published by Engagement Labs on August 5, 2014


Luxury brands have traditionally been considered « distant » by customers, but lately they’ve been crossing over to the social media sphere to interact with loyal as well as new fans. Luxury brands are trying to democratize their customer approach by reaching out online, but is it working?

Because having good products is not enough anymore, you need to offer your customers something else, something extra to make them feel special for choosing your brand over the competitors… People talk and you want them to say the greatest thing about your brand to as many people as possible!

But can these famous fashion houses and high-end exclusive brands remain everlasting and immortal or will they actually have to make an effort to stay alive in this instantaneous era of social communication?

With so much information going around on the networks, these brands will have to combine the elements of accessibility, rarity, desirability and personalized service in order to create a strategy to stay top-of-mind in the heads of their customers… Putting together a digital and social strategy is more than a must right now, it should be at the top of their “to-do lists”!

What we observed on #elisten?

#engagementlabs has monitored the social conversation surrounding luxury brands to understand the retail experience, in-store service and aftersales (online and offline) from August 1, 2013 to January 31, 2014. Using keywords related to the luxury ecosystem and customer experience, we found 10,600 relevant brand mentions and quotes, with 10% negative sentiment. It’s quite refreshing considering that the news that garners most attention are usually rants on their social networks in solidarity with those who have suffered in these situations.

What are people talking about?

We tried to showcase the most interesting and significant comments that customers thought to communicate openly, whether they were positive or negative…

Here are the most popular topics we inventoried:
– VIP treatment
– Simplified tax return process for tourists
– Foreign language service
– In-store vibe and sales personnel
– Outrageous conduct by sales representatives and after sales issues

What is at stake? Positive vs. Negative

The overall influence of the postings can vary greatly, and the outcomes of a negative comment that is not properly handled by the community manager can be devastating.

We categorized the postings by:

1. Weight and importance
• Positive: short and sweet
• Negative: long and very specific about the recriminations

2. Impact and reach
• Positive: a summary that has no potential of becoming viral
• Negative: systematically repeated and significant reach

Whatever the comments expressed by customers, brand managers and social media marketing teams must always acknowledge the information presented. Leaving comments unanswered is akin to not returning a customer’s phone call or ignoring a person’s opinion.

To learn more about what brands can do to enhance customer retail experiences follow us next week when our CEO, Paul Allard, attends the Luxury Retail Convention on March 19 in Paris. You can also read our upcoming blogs featuring some unique facts about luxury brands observed through #evalue monitoring.

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For more information on eValue™ or to request a demo, visit www.evaluesuite.com 

For sales contact us at: sales@engagementlabs.com

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About eValue™:

The eValue™ score measures the effectiveness of a brand’s overall social media performance on Facebook, Twitter, YouTube and Instagram and provides a score from 0 – 100. It’s the aggregate of the three subscores including Engagement, Impact, and Responsiveness that work together to create one top-level KPI. Our subscores are calculated by using hundreds of sub metrics which are then benchmarked against a hand-picked database of 75,000 verified brand accounts on each channel.

Engagement: Measures the level of interaction generated by your content and how well your community reacts to it.

Impact: Measures how many unique users have potentially been exposed to a piece of content posted by the channel’s admin through organic, viral and paid reach.

Responsiveness: Measures the rate, speed and quality of your responses to fans.