How To Grow Your Luxury Brand’s Repurchase Rate In 2023
- Brainz Magazine
- Dec 11, 2022
- 3 min read
Updated: Dec 12, 2022
Written by: Marion van der Krogt, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
When luxury brand owners are looking to increase repurchase rates amongst their current clientele, they are unsure of exactly how to approach it. Or they commit one [or all] of the three most common mistakes of marketing to their existing clients.
First Mistake ‒ Pushing Inventory
The first mistake is to simply push inventory. Your offer is the most crucial step in generating a repeat purchase. It needs to be tailored to the client. This should not be about what you as the brand wants to sell [because you want to move the inventory] but rather what is relevant to your client at that moment.
Second Mistake ‒ Being Too Straightforward
The second mistake many brands make is being too straightforward. Take it easy, tiger! You need to warm your existing clients up, especially if you have never done personal outreach before.
Third Mistake ‒ Giving Up Too Early
There is no magic wand that will make all of your clients buy from you every time you reach out. But what I know from experience is that success will come to those who learn, refine, and try again.
The Luxury Client Growth Method
So what’s a luxury brand owner to do instead? Here are three things I did as a VIC Marketing Manager for a luxury fashion brand. This brand brought me on to develop a clienteling approach that would significantly lift repurchases from top VIC clients. Historically, they’ve been marketing to their existing clientele with a mass-marketing approach, which didn’t move the needle on repurchasing at all and also cheapened the brand. The approach I took ‒ which I have since refined into our proprietary Luxury Client Growth Method ‒ allowed me to increase seasonal client spending by 36%.
Here’s how I did it:⠀⠀
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Commercial Opportunity
I discovered commercial opportunities within the client database. I approached the segmentation of the client base differently, looking at gaps in a customer’s existing purchases and spending in each available product category to look at where growth opportunities were hiding.
Relevant Offer
I created a relevant offer for each identified client using a next-best product matrix.
In order to create a relevant offer, I mapped all available products to a complimentary or suggested next-purchase item. This can be done based on historic purchase patterns, matching complimentary products, or based on wish-list information and customer insight. The next best offer product was then selected based on each client’s individual mapping.
Luxury Outreach
I reached out in a luxury, non-salesy way. Each client was approached in a luxury manner with a flexible script framework, first with a service-type message and making the offer in the follow-up call or email.
As the above approach was successful in significantly increasing client repurchases, I began to distill my approach into the Luxury Client Growth Framework. We now teach and guide luxury brand owners through this method, which has helped my clients double their revenue within 6 months.
Luxury brands who want to achieve significant growth in 2023 despite a possible economic downturn will need to put their focus on growing and retaining their existing top-tier client base first, following the above framework for maximum success.
Marion van der Krogt, Executive Contributor Brainz Magazine
Marion van der Krogt is a luxury clienteling and CRM strategist. She helps high-end brands supercharge their top tier clientele by designing and implementing VIC (very-important-client) programs that create repeat business, deepen customer loyalty and stimulate high-end referrals. She is CEO of Alox Luxury, the premier luxury clienteling and CRM consultancy with clients across 3 continents. Marion’s mission is to bring innovative VIP client programs and strategic clienteling initiatives to independent luxury and bespoke brands around the world.
