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Wunderkind

Digital engagement ‘key to driving luxury purchases’
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The outlook for luxury shopping in 2023 is positive, according to a poll of 500 shoppers that found nearly half (45%) of respondents purchased 3-5 luxury goods in 2022; while just under a quarter (24%) purchased 6-10 items, and 11% purchased luxury goods more than eleven times.

In good news for the 2023 outlook, the same research conducted by Wunderkind reveals that 70% of consumers are confident about their personal economic prospects and 89% expect to maintain or increase their level of online purchases this year.

However, success for luxury brands will be contingent on delivering consistently personalised digital engagement across multiple channels – as the same proportion of respondents (89%) said that, when considering whether to purchase from a new brand, personalisation of messaging and content has a significant influence on their decision-making.

While luxury consumers are often fiercely loyal to their chosen brands, with a tendency toward repeat purchases, Wunderkind’s research showed that 45% are open to broadening their horizons and trying new brands.  Social media channels were considered the most influential for staying engaged with luxury brands, the favoured option of more than half (53%) of respondents, followed by a brand’s app (46%) and email (45%).

Reflecting on their journey to purchase, 50% of consumers stated that they research a product 3-5 times before they buy. For millennials in particular, this journey is often fragmented and ‘omnichannel’ – spanning 3-5 channels or platforms before ultimately closing the purchase.

Cian Agnew, Executive Director of Client Partnerships at Wunderkind, said: “There are valuable lessons in the research for brand marketers in the face of economic uncertainty.  While 70% of luxury consumers are confident about their personal economic outlook for 2023 – indicating a broadly undiminished appetite for shopping – the consideration phase is still relatively elongated, with consumers researching products across multiple brand channels, and in multiple sessions, before ultimately adding to basket.

“These findings support the need for brands to have strategies in place to effectively capture visitors via their owned channels – and to then re-engage and bring them back on-site if they don’t convert on their first visit.  Communicating in a way that’s highly relevant, personal and tailored to the individual is key bringing consumers back – and turning casual browsers into loyal, repeat purchasers.”

Image by justinedgecreative from Pixabay

Ecommerce revenues remain buoyed as bricks-and-mortar reopens
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As the UK High Street experienced a boost in the first week of non-essential retail re-opening, the digital High Street also remained buoyed, with revenues up +2.5% week-on-week.

That’s according to data from Wunderkind‘s Marketing Pulse report, which says as consumers hit the shops after months of closure, traffic on the High Street increased +178%, and an estimated £1.6billion was spent in-store on the first weekend of trading.

Web traffic also saw a rise, increasing by +2.4% over the same period (w/c 12.04 vs w/c 5.04) – which the behavioural marketing specialist says illustrates sustained digital demand.

This, Wunderkind suggests, is not only indicative of the seismic – and permanent – shift to digital, but of the importance in understanding and connecting more closely with shoppers to drive long-term brand advocacy and increased customer lifetime value. 

Wulfric Light-Wilkinson, GM EMEA at Wunderkind, said: “There’s been much debate as to whether the boom in online could successfully be sustained once retail reopened.  And, from what we’ve seen so far, even pent-up demand for real-life shopping experiences in the first week of opening hasn’t deterred consumers from the ease and convenience of shopping online, suggesting the shift to digital is here to stay.  But the real test now comes in how brands and retailers connect and engage with their customers moving forwards, to turn the new cohorts who have come online into repeat shoppers and those existing shoppers into long-term brand advocates.” 

While web revenues and traffic increased on the week before, email performance dipped slightly with revenue down a marginal -1.6% week-on-week. 

“This slight drop in UK email revenue retail could be down to a number of factors;” Light-Wilkinson suggested.  “Non-essential retail opened on the same day as outside hospitality, which also coincided with the last week of the Easter holidays – this may have prompted many to step away from their desks and take time off to enjoy new freedoms, perhaps explaining the slight dip in email performance during the week.”

Social mentions for the words ‘hairdresser’, ‘shops’ and ‘pub’ all saw significant spikes on the first day of restrictions easing, according to social agency, the tree, up 277%, 276% and 272% respectively on the day prior.