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The importance of personalization

What is the meaning of personalization in luxury, and how can we personalize a luxury service?
Man being fitted for a suit.

One of the most effective ways brands have to deliver on personal guest needs and aspirations is to further invest in personalization tools for product design, experience, and delivery. In the luxury sector, the most effective response adopted by brands in current market conditions has consisted of strengthening online and omnichannel strategies with a focus on greater possibilities for hyper-personalization.

From fashion brands allowing customers to personalize bags, sneakers, and essential wear, more options for personalization are being developed in a mix of playful and fun experiences, which are mostly built with native digital customers in mind.

From the initial sections of this course, we know how consumers want to express their uniqueness through what they buy. In recent years, we also witnessed how many brands have struggled to keep their new collections in secrecy due to social media exposure. And finally, the difficulty in balancing luxury consumption as it becomes more standardized yet customers desiring to buy unique and scarce products and experiences.

Personalized products and services bring a unique solution to these constraints for brands: it presents a fresh way to make customers connect profoundly and actively with brands, further co-creating a product related to their desires.

There have been other exciting outcomes from the brand’s innovation in personalization, where brands have shifted from a more global to a local dimension, bringing artisanal craftsmanship relevant to local traditions or the brand’s heritage, thus creating a unique approach to a product. The accelerated evolution of digital solutions allows for new forms of personalization and the enrichment of the customer experience through so many channels – the store and the physical space of consumption is no longer the only limit to luxury brand product creation and design.

Luxury brands have developed an understanding of how bringing a sense of personal care, attention, and ability to listen to a customer’s wants and desires is so successful in delivering outstanding experiences – so how can this be transported to a digital space? Can we have virtual experts tracking the customer’s preferences and desires and providing suggestions of products and services to co-create a unique item?

Customers will increasingly aspire to participate in the production and design process as well: product lines made based on the preferences of specific categories of customers; recurring elements of consumer relations incorporated into institutional websites to become integrated features available to the brand; useful and “trained” online chatbots replacing sales assistants to answer less complex inquiries.

Personalize content to personalize the luxury experience

Managing the personalization process in the luxury industry can be a challenge. The ‘recommendations’ developed by the most advanced technological tools can sometimes be double-edged if they are not filtered and recalibrated by people. They could limit the individual consumer’s ability to choose or be overly reassuring or offensive.

In addition to migrating to digital platforms, employing sophisticated data analysis tools, and using machine learning techniques to mimic human behavior or build spectacular settings, luxury brands have other possibilities more to do with the human element than machines.

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The Global Luxury Industry: From Heritage to Modern Customer Experiences (CX)

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