PPage 50age 50 DCF and valuation pIndustry oaramevervieterws I Points of view from EY’s global sector Managing performance improvement of luxury stores specialists and outside experts The majority of luxury consumers are willing to A relevant example comes from a leading jewelry Both luxury retailers and many luxury hotels, such as interact with a digitally enabled sales associate. retailer that in October 2013 revealed an in-store a leading Asian hotel chain, are already using mobile Bringing mobile technology into stores and investing iPad application that helps customers to create a devices to increase the effectiveness of CRM: to in training and coaching for the sales representatives made-to-measure engagement ring. The app allows quickly and effectively help customers check out and may help enforce trust while creating an even-more customers to compare features for their perfect find products in store, and sales staff pull up made-to-measure experience for consumers. diamonds ring. With the help of a sales associate, the consumer preferences, giving them a tailored Brands and retailers that wish to distinguish their client uses the app to select specific elements of the shopping experience. On the hotel’s side, the customer experience should take into consideration ring such as diamond shape, color, clarity, etc. If you advantage of mobile integration helps with traveler the omni-channel approach. Specifically, mobile will are wondering if digital apps will eventually replace check in as well as with concierge and in-room continue to be an essential medium for reaching the sales associate, the iPad app gets the best from services, etc. international, affluent consumers, and marketers the two in order to enforce customer service. A US-based leading jewelry retailer stands out for its should work to create an optimized, user-friendly A leading department store chain in New York also CRM attitude: people into the stores able to provide shopping environment on mobile devices. created an iPad application to recreate its in-store outstanding customer service or product-related Although there is no reason, for example, why experience. The app combines products’ contents information. customers could not go online, choose items they with online shopping features to provide customers a It has a database that includes more than 60,000 want to try on and send that information to the store, thorough brand experience. customers who have spent more than US$5,000 in that would eliminate a lot of pre-work that could be Digital technology can also be helpful on the the past 18 months. These customers are offered a automated. In any case, digital should be used to customer relationship management (CRM) side: made-to-measure experience, such as: meetings with enrich, not disrupt customer experience. today, only few luxury players are fully aware of the personal shoppers, free engraving, shipping, potential of customer relationship management; that champagne receptions on the mezzanine of the New opens large opportunities for improvement through York flagship store and occasional private events. digital integration — for instance, by having the sales team using iPads to scan and record customer details and social media information and retrieve data from previous customers’ visits. The luxury and cosmetics financial factbook 2015