Customer Relationship Management (CRM) in luxury fashion brand marketing

The first thing I was taught when I started working in marketing for a well-known and luxurious luxury brand was "Retail is the detail, and in luxury, it's the people who take care of the detail."

That remains true. Maybe one day technology will truly achieve perfection, but if and when this happens, the high-quality human touch will always be a differential element, a luxury value.

In the midst of so much digitalisation, we must not forget that the quality of the relationship with the customer in a luxury brand requires that the people representing the brand know and recognise their exclusive customer at all times. This is why it is necessary to also implement a CRM (Customer Relationship Management) platform in luxury fashion industry brands to manage and analyse customer interactions.

Customer Relationship Management (CRM) is very important in luxury fashion marketing due to its unique characteristics and demands. Listing a few, here are some key reasons why CRM is important in luxury fashion marketing:

• Personalisation and Exclusivity: Luxury fashion customers are not just looking for, but expect personalised experiences and exclusive proposals. Through CRM, luxury fashion brands can collect and analyse data on their customers' preferences, purchasing behaviour, and style choices, making it easier for luxury fashion brands to create unique experiences, tailored proposals and exclusive recommendations. By leveraging CRM, luxury fashion brands can deliver a higher level of personalisation and exclusivity, strengthening the emotional connection with customers and creating a sense of exclusivity and uniqueness that resonates with their high-end clientele.
• Building Emotional Connections: An important goal for any luxury fashion brand is to build emotional connections with its target audience, so strong that rational variables, like price, become irrelevant. Well, good CRM management helps achieve this by tracking customer interactions across various touchpoints, like online platforms, physical stores, events, and social media. By understanding their customers' journey and preferences, luxury fashion brands can deliver consistent and meaningful experiences that strengthen the emotional bond between the brand and the customer.
• Trends and Market Understanding: The creation of a luxury brand's fashion collection lasts approximately eighteen months. In it, surprises, that is breaking the rules with audacity and added value, are as important as presenting iconic products, reinterpreted or not, that anchor the brand's legacy. By analysing CRM data, brands can gain a deep understanding of customers' preferences, trends, and purchasing patterns. This knowledge helps brands anticipate customer needs, identify emerging trends, and make decisions regarding product development, assortment planning, and marketing strategies. CRM data allows luxury fashion brands to stay relevant, innovative, and in tune with their target market.
• Building Long-term Relationships and Customer Loyalty: Retaining existing customers is crucial for all fashion brands, luxury ones included. CRM systems allow brands to proactively manage relationships with them by analysing collected data and tracking customer satisfaction. Signs of disconnection or wear can be identified, and the luxury fashion brand can implement specific retention strategies, like quick and proactive problem-solving, personalised loyalty programmes, exclusive proposals, and proactive customer service. These efforts improve customer satisfaction, generate loyalty, and increase the likelihood of repeat purchases, leading to long-term revenue growth.
• Consistent and Coherent Experience: Luxury fashion customers often interact with brands through multiple channels, including e-commerce platforms, physical stores, mobile apps, and social media. CRM helps create a seamless multichannel experience by integrating customer data from various sources. This integrated view allows luxury fashion brands to communicate relevant and consistent messages, personalised recommendations, and a cohesive brand experience, regardless of the channel the customer interacts through, increasing engagement and driving conversion rates.

In conclusion, CRM plays a crucial role in luxury fashion marketing by enabling brands to deliver personalised experiences, build emotional connections, increase customer loyalty, and optimise their marketing strategies. By leveraging CRM data, luxury fashion brands can remain relevant, exceed their customers' expectations, and create the magic.

Article developed by Adela Herranz, a professor at the International Master's in Fashion and Luxury Marketing. If you're passionate about the fashion and luxury sector and want to turn your passion into your profession, this is the master's for you.