Posts Tagged luxury brands
The social future of loyalty rewards programmes
Posted by Paul McSweeney in Facebook, M-Commerce, Online Marketing, Social Commerce, Social Media, Social Networking, Thoughts & Opinions on July 2nd, 2010
A new social twist on loyalty rewards programmes has been announced – the launch of Topguest, a new service that will allow people to use their favorite location-aware social networks for something more than tricksy points, badges, mayorships and the odd mobile voucher; reward points and air miles from loyalty rewards programs of which they are members.
We think this fusion of loyalty rewards programs with location-aware social networking is smart – and an idea that is worth considering for brands with loyalty or CRM programs. By ‘checking in’ to hotels, bars, stores and other destinations on location-aware social networks such Foursquare, Gowalla, Brightkite, Whrrl, TriOut, Loopt, Yelp and now Twitter, Google and Facebook, customers could earn reward points, bringing them to stores selling your wares, whether online or traditional.
For TopGuest, who are looking to become middleware between location-based services (LBS) and travel/loyalty rewards programs, their service is in preview mode, with a partnership with luxury hotel chain, Standard Hotels (reviews on TechCrunch, ReadWriteWeb and Cnet). What’s appealing about the TopGuest service is it’s simplicity, there are no apps to download, you can just ‘check-in’ with your social networking site and start getting rewards. Whilst there is a natural fit between an emergent category of location-aware loyalty rewards programs and travel, we think non-travel brands could develop similar services.
Imagine, for example, if Sony ran a contest during the World Cup in which people checking in to bars screening matches on Bravia TVs won reward points for the SonyStore (if they posted images of the match to TwitPic). Or if every time you checked in and picked up a car at Avis, points were added to your Avis First rewards program. Or, whilst following the travel tips of luxury brands on Foursquare such as Louis Vuitton, Marc Jacobs and Coach, you won loyalty points for following the tips and visiting stores.
Innovation brings a touch of class to online shopping
Posted by Paul McSweeney in World News on June 16th, 2010
E-commerce is not generally seen as the sexiest corner of the internet these days. Amazon has become the world’s general store, eBay the world’s flea market. Wal-Mart and Target offer predictably low prices. Brands sell direct through their websites, but hardly make that their focus.
Many luxury groups have opted out of e-commerce altogether, believing the risks of selling online – such as brand degradation and counterfeiting – outweigh any benefits.
This whole notion of the web being a channel of discounting went against the very aesthetic of these brands. But recent innovation has reshaped e-commerce. Luxury brands are discovering ways to reach customers without sacrificing brand integrity.
Applications on smartphones and the iPad have delivered a powerful interface for users to search, browse and buy goods. Ralph Lauren’s Rugby brand and Gap, among others, have developed their own sophisticated apps.
Indeed shopping is proving one of the most popular activities on touch devices. Sales through eBay’s iPhone app last year topped $500m. Purchases included a Lamborghini, and a Bentley.
All this shows that people are rapidly becoming used to the convenience of getting what they want, when they want it. Buyers are used to finding very expensive goods online. People are also confident enough to make big purchases without having to talk to a sales representative.
Luxury goods are among the most popular things consumers search for online, and a lot of it is their desire to know what’s going on with them, and their desire to own them. Yet meeting the demand and maintaining the luxury brand’s image was a perennial challenge.
Most high-end brands have established online sales through traditional channels, such as resellers and their own sites, and now they are gaining the confidence to venture out.
In addition to new applications, and private sales sites such as Gilt Groupe and Haute Look, one can also point to local deal sites such as Groupon and Living Social, and a new wave of companies that are bringing together location awareness, real-time inventory and deals, and social media.
It’s a huge period of innovation for consumer facing e-commerce. Customers are looking for curation, and social and mobile media are enabling real innovation and entrepreneurship today.
