5 Numbers Every Luxury Retailer Should Know

From the moment a customer encounters a luxury brand—whether in a store or online—to the moment of purchase and receipt of goods, high-end brands must deliver a premium experience. 

What is a premium experience? 

It’s one that allows luxury brands to justify higher price points.

It’s one that cultivates loyalty among its customers, and sets its brand name apart in a marketplace that’s crowded with competitors offering products of exceptional style and quality. 

Here are 5 numbers every luxury retailer should know as they strive to deliver an exceptional experience that their customers will love.

52% of high-income earners shop online

More than half of high-income shoppers do their buying online. For luxury retailers, that means a massive percentage of their clientele is purchasing from a digital storefront (versus a brick-and-mortar) at any point and time. 

In other words, being able to provide an exceptional experience online is non-negotiable—it’s a must have these days. 

85% of growth, 30% of spending 

Millennials and Gen Z love shopping online. As a matter of fact, when it comes to luxury retail, they are 24% less likely to make a purchase in-store than Gen X or Baby Boomer shoppers.

‍But, more importantly, this younger generation is responsible for 85% of all growth in luxury retail and more than 30% of all spending on luxury retail.

As these emerging groups of luxury shoppers enter their prime earning years, offering an exceptional ecommerce experience will become all the more important. 

40% of shoppers bracket

At least 40% of online shoppers bracket their purchases. For luxury retailers that typically offer free return shipping, bracketing is a major expense. 

To avoid it, consider investing in things such as improved sizing technologies, more accurate product details, higher-quality imagery (including 360-degree photography), and more nimble chat support.

66% more engagement

Luxury shoppers care far more about their order status than non-luxury shoppers—luxury brands experience a 66% higher engagement rate on item shipment tracking pages than non-luxury brands. Luxury customers check their order tracking pages an average of five times (and as many as eight times.

This engagement amplification also applies to click rates—luxury brands experience an average 25% click-through rate from branded tracking pages.

How luxury retailers can do better online

For front-footed luxury retailers, there are many ways to do better online. One of the first things any savvy retailer should do is ensure they’re positioned to solve their biggest digital challenges. Next, they need to make sure they’re optimized for reverse logistics (since free returns is such an integral component of high-end retail) and that they’re utilizing the optimal returns software.

Curious to learn more about enhancing your luxury retail experience?—Talk to Narvar today.