L-R clockwise. Leon Bailey-Green (editor, Upper Clash), Stelios Pardalakis (founder, Stellar Search), Nikolay Piriankov (ceo, Taylor & Hart), Adam Knight (co-founder, Tong), Nick Moutter (founder, Olivia’s), Ceanne Fernandes-Wong (ceo & co-founder, Cocoon), David Lockwood (co-founder, The Tapestry Agency).
RETAIL COMMERCE DISCUSSION, Episode 8
Making The Most Out Of
Infrequent Luxury Customers
In this episode we hear from digital first luxury brand founders about frequency of purchase. Unlike food and cosmetics, which need regular replenishment, and fashion, which is trend driven, selling items like furniture, appliances and jewellery often means long gaps between purchases.
Cocoon is turning that infrequent purchaser of luxury handbags into a regular customer by providing the opportunity to rent bags for a monthly subscription fee. Most members are changing their bags monthly, but Ceanne Fernandes-Wong, the company’s co-founder, expected to have a bigger base swapping weekly however “that’s probably changed because of the world we’re living in right now” she said.
It’s twelve months in for luxury homeware and furniture start-up Olivia’s. Founder Nick Moutter said providing great customer service on lower price point accessory items – lamps, mirrors and vases – gives customers confidence to choose the company when they have a need for higher value furniture.
For Taylor & Hart the typical lifetime customer journey involves two purchases – an engagement ring, and a wedding ring. Founder Nikolay Piriankov says now is the time for the business to consider areas of expansion to maximise customer lifetime value – from range extension to creating a wedding related platform.
Nick and Nikolay were joined by Stelios Pardalakis, David Lockwood and Adam Knight for this discussion hosted by Upper Clash director and editor Leon Bailey-Green, who later spoke with Ceanne.
Stelios, from marketing agency Stellar Search, said campaign measurement metrics can be misleading when looked at in isolation.
David, from consumer analytics consultancy The Tapestry Agency, offered advice on how brands selling infrequently bought items should use data to make customer marketing decisions.
Adam, from China market agency Tong, revealed consumer credit is one of the tactics being used in China to encourage consumers to buy, and buy more frequently.
Scroll down for the long edit.
How credit and renting open luxury to new consumers – 2 Minutes 24 Seconds.
Using range extension to stay front of mind – 1 Minute 33 Seconds.
Using data to understand who customers really are – 3 Minutes 17 Seconds.
Creating content that drives engagement (and sales) – 1 Minute 30 Seconds.
Soliciting feedback and utilising customer reviews – 1 Minute 24 Seconds.
Encouraging loyalty for repeat purchases – 2 Minutes 17 Seconds.
Servicing luxury products – 1 Minute 23 Seconds.
Profitability on first purchase – 1 Minute 5 Seconds.
The Long Edit – 23 Minutes 58 Seconds