Reshaping Luxury Retail Clienteling

Luxury retail has always been synonymous with opulent clientele and exceptional customer service, as 53% of luxury customers prioritize and desire a superior customer experience.

Yet, recent years have seen a shift in customer expectations within the luxury retail industry. The widespread adoption of digital technology has made digital literacy commonplace among modern shoppers, transforming the convenience of technology and mobile devices from a luxury to a necessity.

In response, luxury retailers are reconsidering their approach to customer service to provide top in-store customer experiences. Ultimately, the focus is not on what luxury clienteling means to the brand, but rather on meeting the evolving needs and desires of the customers.

Focusing On Local Engagement and Sales

Before the pandemic reshaped the retail landscape, luxury spending was heavily influenced by travel, with a significant portion of sales originating from tourists. However, with international tourism expected to remain subdued for the foreseeable future, luxury retailers are shifting their focus to local sales.

According to McKinsey and Business of Fashion’s State of Fashion 2022 report, luxury brands are urged to deepen their engagement with domestic consumers and invest in clienteling best practices, tailored to local brick-and-mortar stores and online platforms.

For local customers, personalized service and familiarity are paramount. Upon entering a luxury cosmetics store, clients expect immediate one-on-one assistance from associates who can effortlessly recall their preferences, purchase history, and even their names from the first interaction. This personalized approach transforms associates into trusted advisors rather than mere vendors, epitomizing the essence of clienteling in luxury retail.

Empowering associates to provide tailored recommendations based on customers' specific needs, preferences, and current trends enhances the personal touch of the shopping experience, fostering genuine connections.

Effective Outreach and Relationship Building

While traditional marketing strategies may feel generic, associate outreach offers a more targeted and contextual approach to customer engagement, strengthening the customer relationship. Whether following up on a purchase, extending event invitations, or introducing new products, personalized and contextual communication resonates with customers and significantly boosts conversion rates.

While some experienced associates may deliver this experience independently, achieving consistency and scalability requires well-defined clienteling practices.

Adapting to Online Expectations

While many luxury cosmetics customers still prefer physical stores, the convenience of online shopping continues to attract a significant portion of consumers. Websites, mobile apps, and social commerce platforms have emerged as dominant sales channels for luxury cosmetics brands.

However, the rise of online shopping does not diminish the expectation for high-quality shopping experiences. According to a 2022 Forrester report, a considerable percentage of luxury shoppers expect virtual assistance when shopping online.

While chatbot features offer automated assistance, there is a growing preference among customers for live one-to-one interactions. Luxury retailers must replicate the high-touch clienteling experience online, providing personalized guidance and support to online shoppers.

For instance, incorporating live video assistance and chat features into online platforms has proven effective in doubling e-commerce conversion rates. Moreover, enabling associates to engage with VIP clients across channels reinforces brand loyalty and drives sales.

Attracting the Next Generation of Luxury Consumers

To ensure sustained growth, luxury cosmetics brands must adapt to the preferences and desires of the next generation of consumers. With younger generations expected to dominate the luxury market by 2025, understanding their motivations and priorities is crucial.

For Gen Z and Millennials, self-expression, consciousness, and brand authenticity are paramount. Sustainability, ethical practices, and transparency are key considerations in their purchasing decisions. Leading luxury brands are actively communicating their commitment to these values and incorporating them into their brand identity.

By equipping associates to articulate these brand values and engage with consumers in a value-centric manner, luxury retailers can effectively connect with the next generation and secure their position at the forefront of the industry's future.