Luxury Brands’ Marketing And Sales Must Collaborate To Propel Customers On Their Purchase Journey

Affluent and high-net-worth individuals, the most discerning and empowered consumers on the planet, use luxury retailers’ digital footprint as the roadmap on their customer journey. Typically marketing is responsible for dropping the “bread crumbs” and sales complete their journey.

But the digital economy has altered those dynamics, disrupting the traditional marketing and sales funnel stages. Sharing real-time customer data across both functions at each step in the customer journey is required to move the customer along to complete their journey.

However, a new study by Chief Marketing Officer (CMO) Council, in partnership with KPMG, found 60% of marketers said marketing and sales don’t co-own customer strategy and data, with one-fourth saying critical customer data is still held in silos by marketing and sales.

The result is that 70% of CMOs lack confidence in their current sales and marketing models. “Most sales and marketing organizations haven’t been able to pivot fast enough to the new digital buyer,” is the conclusion of the CMO Council report, “Sales & Marketing: Driving Revenue Through Collaboration,” based on research with 300+ CMOs.

Because the customer journey is increasingly digitalized, whether transactions are made online or in-store, it’s essential for brands to adapt their strategies to engage and sell to affluent customers effectively.

Calling on companies to find new ways for marketing and sales to collaborate across customer strategy, data and metrics, the report highlights the significance of transforming the marketing-sales relationship, driven by a shared understanding of customer insights derived from data science, artificial intelligence, and machine learning.

The findings are clear for luxury brands: To address the challenges posed by digitally savvy customers, luxury retail brands must focus on aligning their sales and marketing teams to ensure a seamless and customer-centric purchasing process.

Meeting Affluent Customers’ Needs and Expectations Presents Special Challenges

This new digital age presents unique challenges and opportunities for premium and luxury brands. By 2030, about one-third of all personal luxury goods sales will be made online, up from 21 percent in 2022, according to Bain. And that’s not even counting the share of sales that start online and are concluded in-store or by phone.

As we move deeper into the digital age, there is no denying that consumers are becoming increasingly self-reliant. With a world of information at their fingertips, buyers now have the tools to evaluate and select products without the need for intensive sales pitches or in-store experiences. In this rapidly evolving landscape, premium and luxury retail brands must continue to captivate consumers and drive revenue growth.

Because the customer journey is increasingly digitalized, whether transactions are made online or in-store, it’s essential for brands to adapt their strategies to engage and sell to affluent customers effectively.

The mindset shift required for successful collaboration between sales and marketing can have profound effects on premium and luxury brands in the retail sector. By placing the customer at the center of their sales and marketing strategies, these brands can create more engaging and personalized experiences that resonate with today’s discerning consumers. This, in turn, can lead to increased brand loyalty, improved lead generation, and ultimately, higher revenues.

Accepting the Challenge

Premium and luxury brands are poised to excel in the new era of digitalized customer journeys if they prioritize collaboration between marketing and sales with data as the connective tissue.

Take Tiffany & Co., for example. The iconic jewelry brand underwent a digital transformation that involved revamping its website, social media accounts, and advertising campaigns to better reflect its target audience’s preferences.

This included collaborating with influencers on Instagram and working closely with its sales team to foster a more cohesive brand image. As a result, Tiffany & Co. saw a considerable increase in engagement and sales, demonstrating the power of sales and marketing alignment.

Similarly, Burberry has focused on integrating data and technology into its sales and marketing strategy in recent years. The luxury fashion brand leverages artificial intelligence and machine learning to analyze customer behavior and preferences, enabling it to deliver tailored promotions and experiences across digital and in-store touchpoints.

By aligning their sales and marketing teams around customer data, Burberry has successfully embraced the digital era and maintained its status as a leading luxury brand.

Tapping the Power of Sales and Marketing Collaboration

Sales and marketing collaboration can be a game-changer for luxury retail brands. Here’s what’s needed:

1. Embrace a customer-centric approach: Luxury buyers value personalized experiences and seamless transactions, without compromising on quality or service. Therefore, it’s crucial for premium brands to focus on understanding their customers’ preferences and offer tailored products, services, and experiences across various digital channels.

2. Reinvent the sales and marketing relationship: The traditional way of working has proven ineffective in the digital landscape. Sales and marketing teams must redefine their roles and responsibilities, collaborate on achieving business objectives such as revenue, customer acquisition, and market share, and share relevant information to devise effective customer acquisition and retention strategies.

3. Develop shared goals and KPIs: Aligning marketing and sales on shared key performance indicators (KPIs) can facilitate smooth communication and ensure both teams work towards common objectives. For luxury brands, these KPIs should include customer satisfaction, brand reputation, and customer lifetime value.

4. Leverage technology to enhance decision making: The use of fragmented technology across marketing, sales, and service has hindered better sales-marketing alignment, with 61% of marketers agreeing on this issue. It’s essential for premium brands to invest in integrated technologies that support data-driven decisions, improve customer experiences, and facilitate effective communication between marketing and sales teams.

5. Optimize touchpoints throughout the customer journey: Luxury brands must analyze and refine all customer touchpoints – from discovery through purchase and post-purchase interactions. By optimizing these touchpoints, luxury brands ensure a seamless, convenient, and enjoyable experience for buyers, which is crucial to build lasting relationships.

In an era where consumers are increasingly resourceful and selective, luxury retail brands must prioritize collaboration between their sales and marketing teams to remain competitive. By fostering a customer-centric approach and leveraging the power of shared data insights, these brands can create more personalized and engaging experiences that resonate with today’s discerning buyers. In turn, this can drive long-term loyalty and continued growth, securing the future success of premium and luxury retail brands in the digital age.

The Affluent Consumer Research Company can help you discover the key to unlocking your luxury brand’s full potential – Get a complimentary consultation with our affluent consumer research experts today. Let’s explore how our data-driven insights and cutting-edge digital marketing solutions can elevate your brand’s customer engagement, relevance, and success in the competitive luxury market. Book your consultation now.

Comments Off on Luxury Brands’ Marketing And Sales Must Collaborate To Propel Customers On Their Purchase Journey

Tags: ,