The world of luxury retail was once built on creating memorable in-store experiences. In-store personnel could recognize returning shoppers and give them an exceptional experience. Today, customer journeys span beyond in-store shopping. Customers can choose how and when to interact with a brand; they can browse and buy in store, on mobile, and even through social media. This makes providing the same exceptional and consistent experience as in store difficult. If customers aren’t happy, brands risk losing them to competitors.
Meeting customer expectations is essential if you have continuous growth plans and a desire to expand into new markets. You must deliver a consistent, exceptional experience that matches your brand to meet their expectations. You can achieve this with the help of payments, which - when done right - play a critical role in the world of luxury retail.
The core focuses of luxury retail
Looking at how luxury brands operate today, we identify three main aspects that play a crucial role in meeting their customers expectations:
Unify customer experiences
Drive brand innovation
A single payments provider
What do these look like in action, and how can payment service providers (PSPs) help you reach them?
Unify customer experiences
Customers expect tailored and consistent experiences across all channels. This is difficult to achieve if you use different systems for each market and channel that aren't connected to each other.
Adopting unified commerce helps you create consistent and personalized customer journeys as it helps you:
Securely save card details and use these to support one-click payments or reward customers for their continued brand loyalty.
Provide a flexible online checkout with a consistent look and feel to the experience you offer in store.
Use the shopper's location, device, or basket value to display relevant payment methods early in the checkout flow. This helps boost successful purchases and improve the customer experience.
Gain a 360-degree view of customer purchases across all touch-points and deliver a bespoke journey.
Let in-store shoppers skip the line with mobile point of sale (mPOS) terminals that can accept payments anywhere on the shop floor.
Upgrading your omnichannel solutions by connecting your online and offline payments in one system gives you a holistic view of your customers and business. The insights you gain help you build personalized experiences, from highlighting preferred payment methods to targeted loyalty campaigns.
You can also offer seamless cross-channel experiences, such as ordering online and collecting in store or buying in store and shipping home. By putting customers in control of their buying journey and catering to their specific needs, you can bring that luxury, tailored service to the forefront.
Iconic designer label Christian Louboutin wanted to develop meaningful omnichannel journeys. To achieve this it needed to understand its shoppers better. Working with Adyen and using our ShopperDNA feature in the brand’s own Customer Area, Christian Louboutin was able to identify the same shoppers across different channels via key indicators. Meanwhile by connecting its in-person and online payments the brand is able to cater to the needs of its customers better.
"We use insights from payment behavior to gain a better understanding of our customers," Chloée Daullé, Group Treasurer at Christian Louboutin, explained. "It's a real advantage to know which channels our customers use. Adyen's reports are a key indicator from a business point of view."
Drive brand innovation
As a luxury business, you want to offer your customers the most elegant experiences. Being first with the latest is a key aspect of succeeding with this.
Product innovation, digitizing stores, and social engagement platforms all help to drive growth. However, innovation requires collaboration with like-minded technology partners.
With increased competition and an ever-changing payments landscape, PSPs must deliver solutions that add value across the entire business to make an impact. When evaluating potential payment partners, you should expect them to:
Offer local payment methods. You can increase conversion rates by allowing customers to pay how they want.
Stay on top of the latest payment trends and be ready to adopt emerging payment methods.
Support Direct Currency Conversion (DCC) and seamless VAT refunds. DCC benefits customers as they can pay in their currency and have transparency over how much they will be charged. Meanwhile, many will be entitled to a VAT refund. This means your PSP must be able to issue them quickly and seamlessly on a regular basis.
Provide top fraud prevention technology. The risk of fraud increases with high average transaction values (ATV). Make sure your provider can protect your business from potential chargebacks and keep your customers' payments safe.
Swedish beauty giant Oriflame has come a long way since its founding in 1967. Over the past few years, the brand has transitioned from desktop shopping to mobile purchasing. With customers in over 60 regions, they needed a payments partner that could not only optimize payments for mobile but also offer effortless local payment methods to decrease overhead and reduce risk. Adyen was the perfect fit thanks to our global coverage.
“With more than 40% of global orders placed using mobile devices, it's essential to have a payment solution that adapts fast. With Adyen, we have an agile solution that is always ready to provide the latest technology for the best customer experience,” said Marcus Fogel, Senior Director Global Online at Oriflame.
A single payments provider
Keeping up with trends and adapting your payments setup is key to meeting your customer's expectations. This can be difficult if your payments setup consists of multiple parties, contracts, integrations, partners, settlement processes, and technical support contacts.
Using one single payment provider, you can respond faster to changing consumer demands and maintain a culture of innovation. This is because you don't need to align between multiple parties. Instead, you'll have:
One contract for all local payment methods allows you to enter new markets quickly and easily. New integrations are unnecessary; adding more payment methods is as simple as flipping a switch.
One platform for all channels. This removes the inefficiencies of disjointed legacy platforms and gives you a single view of your customers.
One reconciliation/settlement process that reduces the burden on finance.
Standard reporting across all channels. This gives you real-time performance insights.
One set of performance measures and SLA's with a 24/7-support network.
Oekter Collection swapped its multi-party PSP setup for one single partner, Adyen, to power payments in its high-end hotels. Now the brand can deliver reliable and consistent guest experiences that let them pay how they want, when they want, wherever they are.
"A one-stop shop is important because you have one contact when support is required. Solving problems is faster and becomes easier," Vice President Information Systems and Technology at Oetker Collection, Christos Andreopoulos, explained.
Invest your money and resources carefully
Integrating with new technology partners can be an expensive and time-consuming process. It requires effort and buy-in from across your organization. It's important you take the time to ensure you're investing in the right partnerships.
At Adyen, we offer our customers an end-to-end solution covering every payment journey, from in-person and online payments to revenue-boosting technology and top-of-the-range risk management. Through Unified Commerce, we provide a holistic view of customers' interactions, from their payment method preferences to their favorite channels, giving you deeper insights to create personalized, luxury experiences.
Working with brands such as Zadig&Voltaire, Christian Louboutin, and Tory Burch, we tailor our products to their business and customers' needs.
Want to learn more?
Get in touch to find out how we can help you simplify your operations, improve shopper experiences, and drive brand innovation across the entire luxury journey.