Running a high-end brand is truly an art. While many people might be tempted to dismiss luxury brands as simply overpriced goods, this neglects the tremendous amount of work that these brands have to put into maintaining their images. And although there is, in fact, a segment of society that will automatically gravitate towards luxury goods, it is by no means given that they will continue doing so.
In other words, luxury brands have to work hard to maintain their image. They need to constantly prove to people that they are worth investing large amounts of money in. And these days, the competition is getting stiffer and stiffer. Market statistics indicate that younger generations (and potentially older ones, too) are putting less emphasis on brand names and more on product features. So high-end brands need to really go the extra mile when it comes to winning and maintaining target audiences’ interest.
Enter AI
As with every industry these days, AI has proven to be the answer to this problem. Why do people feel alienated from certain categories of goods? Because they don’t identify with them, basically. And fortunately, AI is capable of speaking to people in pretty much any language that companies require. These days, having an AI chat with character can be much like chatting with a dedicated, informed salesperson who is truly invested in the success of your shopping experience. Let’s take a closer look.
The broadening of white glove service
We all know the term white glove to describe high-end products and services. In the past, white-glove brands utilized only highly sophisticated human services to give customers the feeling of belonging to a truly exclusive realm. Indeed, when the idea of utilizing conversational AI to appeal to this audience first emerged, many high-end brands were reluctant to act on it.
But these brands are increasingly getting on the bandwagon as they see the results of others’ efforts. The reason is because conversational AI can be so refined at appealing to people that many do feel they are being served by sophisticated sales agents.
Intense personalization
Much of the appeal of these tools comes down to conversational AI’s ability to hyper-personalize marketing. The reason that high-end brands have traditionally been successful is because they don’t make customers feel that they are simply speaking to the masses; these brands manage to speak to people on a granular level and make them feel that they are truly part of an exclusive realm. Why do you need this luxury perfume? Because Chanel has been working for hundreds of years to refine this special product that only exists for a few select people like you.
Conversational AI is able to discern what individuals want by using algorithms that analyze people’s precise buying behavior, and works with them step-by-step to guide them through the buying process in subtle ways. People feel as if they have not only a shopping assistant, but a personal friend that is taking them through the process.
Appealing to younger generations
Not only have younger generations shifted their focus when it comes to product names and components, but overall they have much higher expectations when it comes to technical service. Just as older generations want to feel that they have a personalized shopping experience, younger ones want what they want at any given moment with absolutely no glitches. Otherwise they will go elsewhere.
High-end brands know this, too, and are able to address these needs with the right tools. And while the needs of younger generations might be different from those of their older counterparts, conversational AI is flexible enough to speak to different audiences in different ways. Again, it comes down to hyper-personalization. Think you can’t afford this diamond bracelet? Diamonds are forever, and they are increasingly being sourced sustainably. Your purchase will be an investment that will stay with you for life.
How are companies doing this?
The precise ways in which different brands are employing conversational AI depend on the type of product and the audience they are trying to reach. Some examples include:
- Virtual concierges. All high-end shoppers expect concierge service. You want to feel as if your purchase was not just an action completed, but a memorable experience that you will always associate with the product or service you end up with. High-end brands know this. And this is why companies like Dior are utilizing chatboxes on WhatsApp and other chat apps to offer personalized product suggestions and provide product updates.
- Another example is Kering, the group that encompasses Gucci, Yves Saint Laurent, and other big games. They have put an actual name on their AI assistant, calling her “Madeline.” Madeline can provide detailed information on fabric choices, styles, product care, and more. This is what high-end customers demand.
- In-store AI assistance. Other brands are combining the efforts of in-store staff with AI assistants to offer customers the perfect blend of technical information and human touch. Burberry, for example, utilizes information that it gathers from loyalty programs to provide personalized recommendations to customers.
- Zegna goes a step further. Using its “Zegna X” tool, customers can fully customize their orders of high-end leisurewear, with the tool acting as a virtual tailor and allowing customers to have the perfect outfits created for them.
You want it, you got it
The sky is the limit these days in terms of what AI is capable of providing to people. And while there may still be a few old-school sticklers out there that claim this is inauthentic, the proof is really in the pudding. If people are ultimately happy with the products and services they end up with, this is all that matters. This is not to suggest that needs and interests won’t continue evolving over time, but trends certainly indicate that AI will keep pace with the evolution extremely well.
