Luxury Institute: The Current State of Data and Analytics in the Luxury Industry
NEW YORK , April 5, 2022 /PRNewswire/ -- Over the past 12 months, in confidential face-to-face, zoom, and phone conversations with the CEOs of approximately a dozen large, medium, and small luxury goods and services brands, Luxury Institute CEO Milton Pedraza heard one recurring theme: most are dissatisfied with the state of their Group's or brand's data and analytics resources and capabilities. When Pedraza mentioned to a top luxury retail CEO that his brand could now access the most descriptive and predictive digital platform (Google, Instagram, Facebook) data directly from its customers via the Advanced Personalization Xchange (APX), the CEO threw up his hands in frustration and said, "We don't have the internal expertise or tools to do anything meaningful with the data we have now, let alone richer and higher caliber customer data. I feel like we are amateurs, while everyone else is playing major league."
The CEO was wrong. Most brands in luxury, across all categories and levels, appear to also be playing at "aspirational" levels in data and analytics capabilities, at best. That sums up the findings of a recent survey conducted by Luxury Institute's Affluent Analytics Lab (AAL). This survey was conducted with luxury goods and services brands executives, and their top consultants, across the globe. The results indicate that data and analytics processes across most luxury enterprises are broken. Here are some of the study highlights:
Data Collection Capabilities
Data Integration Capabilities
Data Accuracy & Quality for Analysis
Data Access for Analysis
Data Timeliness for Analysis
While data collection is an area where there is the highest level of satisfaction reported by luxury enterprises, still, only a minority of brands report being satisfied. Once the data is collected, however, most enterprises report systemic failures across all elements of the data management and data analytics processes and capabilities. Qualitative responses as to how the data is used indicate that luxury brands use data for basic and rudimentary tasks such as to measure outputs (email campaign results, total sales) vs generating high-performance inputs that accurately define and respectfully target pinpoint, high propensity audiences.
Content development is another area where data is used, but it is used in very rudimentary ways that fail to deliver personalized, sharp, compelling content and offers that resonate with well-defined customer segments. Without the right data management and analytics skills and without the right processes in place, executives tell us their luxury brands are using data and analytics to execute what amounts to mass marketing and selling in a digital format. Luxury brands are failing to innovate and create sustainable competitive advantage.
As a result of the study findings, Luxury Institute's Affluent Analytics Lab (AAL) is providing an exclusive offer to large, medium, and small luxury goods and services brands. Led by Pedraza, who created the first CRM project for Citibank and a $20B consumer goods and services conglomerate, AAL will conduct a data and analytics audit to discover and determine the current state of your brand's data collection/management and analytics processes. Luxury Institute's team includes top data scientists and expert legal advisors, formerly of Google, Forrester, and other top-tier institutions. Our attorneys are helping to advise on privacy and data rights laws in Washington. Based on the findings, Luxury Institute will deliver actionable conclusions and recommendations to immediately address brand data and analytics needs and improve team processes and results. If the brand desires, the AAL team will remain as an objective advisor to the CEO or Board of Directors to help oversee the brand's data and analytics capabilities implementation progress.
About Luxury Institute
To learn more about Luxury Institute, please contact us at LuxuryInstitute.com
SOURCE Luxury Institute