How to build loyalty with Luxury’s new generation of shoppers
The anticipated emergence of Millennials and Gen-Z into the luxury retail space is here. Currently accounting for approximately 50% of luxury sales across the globe, this figure is expected to exceed 70% by 2025 (Bain & Co., 2022). As modern technology and evolving customer mindsets shape the landscape of high-value retail, the lines between physical and digital touch points continue to blur. At Prommt we have noticed that many of our luxury clients are incorporating a more personalised communications strategy, that extends to payment collection and beyond, in order to foster relationships with repeat customers.
Luxury’s new generation of hybrid shoppers expect to engage with brands through multiple channels simultaneously. Prommt believes that by developing a business strategy where digital and in-store interactions complement rather than compete with each other, brands are able to successfully create bespoke shopping experiences that connect and leave a lasting impression.
When it comes to trends in luxury retail, the one that has stood the test of time is the importance of brands owning the customer experience from beginning to end. Studies indicate that shoppers preference for greater agility and convenience extends to their remote checkout experience, with 87% of Gen-Z and 89% of Millennials saying they find significant value in flexible payment options (Klarna, 2022). They expect a uniform, seamless brand experience with personalisation and comfort taking centre-stage. Prommt’s trusted, merchant-branded payment requests empower retailers to efficiently secure remote payments through card and bank transfer while delivering a superior customer experience. 78% of Millennials and Gen-Z view a brand’s commitment to innovation and new technologies as a decisive reason for purchasing an item (Business Insider, 2022). Prommt believes that brands that invest in today’s technology can better adapt to tomorrow’s market fluctuations.
81% of consumers expect brands to offer a seamless purchasing process across all devices.
76% of customers get frustrated if they don’t receive their expected level of personalisation.
Source: Objectivity UK, 2022
According to reports by Objectivity UK 2022, fast growing retailers drive 40% more of their revenue from personalisation compared to their slower-growing counterparts. Prommt believes that payment flexibility opens opportunities to enhance the way retailers interact with customers, building stronger and more enduring relationships. Our advanced payment request platform enables our luxury clients to gain a competitive advantage by supplementing in-store or over the phone consultations with an easy, secure and more convenient way to pay. The ability to accept payment through card or bank transfer in multiple currencies, store cards for repeat purchases and set up recurring payments offers retailers an opportunity to deliver a personalised, white-glove experience. By becoming more digital-optimised, unified and collaborative across all of their customer interactions, retailers are able to lay the groundwork to drive revenue and brand loyalty.
25% of global luxury goods sales will be made online by 2025.
Source: Objectivity UK, 2022
To summarise, retailers need a solution that:
1. Merges the gap between digital and in-store interactions
Offer your customers a unified, white-glove experience by frictionlessly moving them through their shopping journey without losing sight of brand values. When digital and in-store interactions are complementary rather than competitive, retailers can create an enjoyable customer experience that leaves a lasting impression. Delighted customers who receive seamless, personalised offerings are keen to recommend the brand to friends and family, as well as return to the retailer in the future.
2. Secures Payment
Risky telephone and other offline payments should be transferred through an online, 3D Secure, PCI-Level 1 and GDPR/ UK DPA compliant payment process. Retailers require an advanced payment request platform that delivers a seamless payment journey with customer brand values retained.
3. Facilitates Payment Flexibility
Give your customers the choice to pay by card or pay by bank, where customers authenticate and approve a bank payment directly from their mobile banking app into the merchant business account in four easy clicks. As an alternative to manual bank transfers, Prommt’s Pay by Bank significantly reduces payment operations costs for merchants, offers greater protection from fraud, and eliminates chargebacks – particularly for higher value transactions.
4. Enhances Customer Trust
The ability to carry your brand throughout the payment journey enhances customer trust. With branded payment request emails delivered from your corporate domain and SMS from a custom SMSID, customers see a URL they recognise.
Get in touch with us today to learn how we can help you build brand loyalty with Luxury Retail’s new generation of shoppers through an omni-channel approach to payment flexibility focused on creating bespoke experiences.