Il caso del “luxury feeling”:

best practice sull’esperienza d’acquisto online

Francesca Borgonovo, Digital Analyst, Contactlab

Micaela Raimondi, Marketing & Communication Director, Contactlab

Milan, 16 November 2016

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This document may not be modified, organized or reutilized in any way without the express written permission of the rightful owner.

The Online Purchase Experience Ranking: from Milan to New York City

A privileged observatory on Luxury market

Our data-driven methodology led us to have a

privileged observatory on brands digital

strategies benchmarking brands position within

their sector.

The Luxury Goods reports - in partnership

with Exane BNP Paribas - allow us to

understand market trends and customers needs

in the Fashion & Luxury industry.

• Digital frontier

• Digital Competitive map

• Email Competitive map

• Online Offer Dive

• Pricing Landscape

• Online Purchase Experience

• Luxury in… Find out more:http://contactlab.com/en/more/reports/

3© Copyright 2016 Contactlab

This document may not be modified, organized or reutilized in any way without the express written permission of the rightful owner.

The Online Purchase Experience Ranking: from Milan to New York City

Agenda

Why the E-commerce experience matters in Fashion & Luxury

What we did

What came out

How to build a good purchasing experience?

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Why the E-commerce experience matters in Fashion & Luxury

The online shopping affects already more than 12% of total sales…

E-commerce only and Cross-Channel Clients (% retail revenues, worldwide)

Source Contactlab Analysis

ca. 12%

ca. 23%

Customers with

E-commerce only purchases

Customers with

Cross-Channel purchases

…projected to reach 20-25% by 2020

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36 complete Purchase Experiences on US Websites…What we did

31 Monobrands + 5 Multibrand Luxury Retailers

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ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

…from Account Registration to Product Return, going through 122 touch points…

Source: Contactlab Analysis

The Online

Purchase

Experience

“Una tantum”

Steps

What we did

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

39 Parameters related to Physical Touch Points

41 Parameters related to Digital Touch Points

42 Parameters related to Digital Touch Points

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What we did

…looking for…

LUXURY FEELING

ATTENTION TO DETAILS / EXTRA TOUCHES

RESPONSIVENESS

PERSONALIZATION AND RIGHT TONE OF VOICE

CROSS-CHANNEL ONLINE/OFFLINE SYNERGIES

….AND ABOVE ALL CONSISTENCY

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

1. Account Registration Process

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1. Account Registration Process: Key findings

What came out

Cross Channel

engagement

Data collection

Only 3 brands asked for Preferred Boutique

Still few brands asked for user’s contact preferences

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1. Account Registration Process: best practice example

What came out

“Store of preference”

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1. Account Registration Process: best practice example

What came out

“Manage my email settings”

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1. Account Registration Process: best practice example

What came out

“Preferred language”

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1. Account Registration Process: best practice example

What came out

“How would you like to be addressed?”

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

2. Welcome email

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2. Welcome email: Key findings

What came out

Opportunity to

introduce the brand’s

world

Not all the brands sent Welcome email

Only 7 Brands sent Welcome Email Series

Only 8 brands promoted their Value-Added Services

12 Monobrands included a link to Store Finder

Some brands didn’t give any visibility to Social Media

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2. Welcome email: best practice example

What came out

Welcome to NET-A-PORTER How to stay stylishly in the know More from NET-A-PORTER How can we help you

Welcome email series

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2. Welcome email: best practice example

What came out

Welcome emailWebsite

Style Advisor Service

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2. Welcome email: best practice example

What came out

Store Locator

Welcome email

Website

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2. Welcome email: best practice example

What came out

Dedicated email for Social Media Dedicated box for Social Media

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

3. Abandoned Cart

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3. Abandoned Cart: Key findings

What came out

Offer Customer Assistance

Just 1/3 of Monobrands sent a specific email for

Abandoned Cart

Many brands missed the opportunity to link email to

Store Locator

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3. Abandoned Cart: best practice example

What came out

Customer Service Focus

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3. Abandoned Cart: worst practice example

What came out

Too pushy approach

Don't forget about your shopping bag...it's full! Don't forget about your shopping bag Reminder: Your Saks Bag is Full Last chance...your Saks bag is full.

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

4. Customer Service Assistance

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4. Customer Service Assistance: Key findings

What came out

Are brands taking

enough care?

Collect user’s feedback

Surprisingly some important luxury brands did not

reply to inquiries

Only one brand sent a Satisfaction Survey via

email after Customer Assistance

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4. Customer Service Assistance: best practice example

What came out

Good argumentation and right tone of voice

"I am pleased to confirm we do offer complimentary next day pick up in store for online purchases. This service is free, and in order to receive the item the day after you would have to place the order before 5:00pm Eastern Time"

“Please note the store would not be able to directly refund an online purchase, but they would facilitate the return by shipping the order back to our warehouse. We would then refund your card as soon as we receive the item back at the warehouse.”

"I am also pleased to confirm we can definitely ship an online order to the Hotel, but we are not able to do that for in-store purchases, as stores are not able to ship. Should you need to deliver an in-store purchase to your Hotel we would have to partner with the managers in the store”

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4. Customer Service Assistance: worst practice example

What came out

No reply to inquiries

Confirmation email

No reply to inquiry

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4. Customer Service Assistance: best practice example

What came out

Satisfaction Survey after Customer Assistance

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

5. Purchase Process: Key findings

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5. Purchase Process: Key findings

What came out

Easy purchase process

for users

Attention to Security Issues

Only 3 brands offered Chinese Union Pay Credit Card

option

Few brands offered Delivery to Store, Saturday/Sunday

delivery

Only 3 brands asked for Signature at delivery

Only 2 brands sent a Product Delivery Confirmation email

Show gratitude Only 1 sent a specific Thank-you Email

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5. Purchase Process: best practice example

What came out

Information about packaging

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5. Purchase Process: best practice example

What came out

Delivery to Store

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5. Purchase Process: best practice example

What came out

Package Delivery Confirmation email

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

6. Packaging

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6. Packaging: Key findings

What came out

Quality and accuracy

Some brands offered a real “Wow effect” at box

opening, others made a “Not so Luxury” first impact

Some brands stood out for Product Box accuracy,

others adopted cheaper solutions

Only 12 brands included a dedicated Thanks card

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6. Packaging: best practice example

What came out

“Wow Effect” at External Box opening can be impressive…

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6. Packaging: worst practice example

What came out

…but also quite desolate!

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6. Packaging: best practice example

What came out

The quality and accuracy of product wrapping can be luxurious…

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6. Packaging: worst practice example

What came out

…but also quite disappointing!

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6. Packaging: best practice example

What came out

Thanks card in evidence at external box opening

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6. Packaging: worst practice example

What came out

Cost cutting or lower standards in the US Market vs 2015 Milan Report?

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What came out

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

7. Return Process

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7. Return Procedure: Key findings

What came out

Does it mean brands

really care?

Ca. 1/3 of brands applied a charge to return goods

Only half panel offered Return and Exchange In-Store

2/3 of panel brands required customers to go to the Post

Office to return goods

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7. Return Procedure: best practice example

What came out

Unlimited time for Return and Exchange

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7. Return Procedure: best practice example

What came out

Cartier visual aid remaining the most appealing and useful support

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How to build a good purchasing experience?How to build a good purchasing experience?

ABANDONED CART

CUSTOMER SERVICE ASSISTANCE

PURCHASE PROCESS

PACKAGING

RETURN PROCESS

ACCOUNT REGISTRATION PROCESS

WELCOME EMAIL

…AND SO WHAT HAVE WE LEARNED?

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Keep the Luxury Feeling!

How to build a good purchasing experience?

Pay attention to details and try to add a luxury touch in all the steps

Clients look for experiences and expect the best

Create Cross-Channel synergies

Forget borders between online and offline

Collect information and data to know your clients better

Make engagement more personal

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The Online Purchase Experience Matrix – SS16 NYC

Source Contactlab Analysis

What came out

Versione di eva

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Keep following us!

How to build a good purchasing experience?

New Reports work in progress

Luxury in…Russia

Luxury in…China

New editions of Digital competitive MapEmail competitive mapOnline offer dive & Pricing LandscapeDigital frontierOnline Purchase Experience in…

Stay tuned!

http://contactlab.com/en/more/reports/

Grazie!

Francesca Borgonovo

Digital Analyst

francesca.borgonovo@contactlab.com

Micaela Raimondi

Marketing & Communication Director

micaela.raimondi@contactlab.com