The world of luxury retail is constantly changing and becoming increasingly difficult to keep track of. We've moved from a time when only high-level executives, lawyers, and people in high-paying professions launched brands associated with fame and status, to massive stock clearing sales, buy now, pay later. We are moving into an era such as . This is a major change in the industry. You are welcome. Brands are beginning to realize that while a significant portion of their revenue comes from high-income customers, trying to exclude middle- and upper-middle-income customers leaves a lot of money on the table.
One of the most significant changes in luxury retail has been the introduction of 'buy now, pay later' schemes offered by vendors around the world, and most recently by Apple itself. This creates new issues of debt and repayment, but this is an outsourced dilemma that brands don't have to worry about personally. This means you can offer your customers the opportunity to own your product without having to shell out a lot of money all at once.
This significant influx of users contributed to the overall sales increase. Acquiring these customers at this scale poses significant challenges and is expensive. Some of the top companies, such as Google and Facebook, have acquired most of the smaller startups entering the world of paid marketing, giving them a monopoly and thereby significantly controlling the pricing of paid media. I'm starting to be able to control it. This is a challenge that can only be solved with the right acquisition strategy in place.
Developing a solid customer acquisition strategy is only one piece of the pie. It's expensive. Have you ever wondered what happens to most customers after they buy from you for the first time? They leave, and that's a good thing. Until you realize that you were spending your marketing budget solely on customer acquisition, knowing full well that you were losing money on customers. This is why most companies lose to the competition. This is why the top 1% brands can gain market share. That's because brands are investing in customer retention strategies.
Customer retention starts with personalization.
