2020 was challenging enough, there’s no denying that. As we all know, the COVID-19 pandemic has forced people to work from home and shop via e-commerce. Finding a balance by innovating is now a necessity, rather than giving up on the pretext of using defensive moves. However, a premium brand must still see the challenges that arise as an opportunity to remain relevant to customers.
Here are seven growing trends in data usage, artificial intelligence (AI), emotional intelligence (EI), and more for premium brands according to Luxury Institute, a premium goods and services research, training and consulting firm based in New York and Florida.
- A driver of premium brand digital transformation: Digital transformation is becoming a new mantra for premium brand management. the material of digital transformation is 3R data, namely Rich, Relevant, and Real-Time. Without rich, relevant, and real-time customer data, premium brands will be stuck in an Industrial Age process and an outdated 20th century business intelligence tool.
- Artificial Intelligence (AI) as the right prediction and recommendation engine for premium brands: Some premium brands continue to rely on programmed advertising as a mainstay of their marketing investment. In fact, with AI, advertising can be more personalized. With AI, premium brands are able to identify new trends that will develop to help facilitate the process of creating product and service innovations. By utilizing AI, premium brands can also avoid being commoditized, irrelevant, and dead.
- Unique data-driven insights to innovate: Premium brands desperately need rich customer data. So far, premium brands get rich customers from formal and informal sources. Still, now premium brands are starting to utilize AI data to acquire rich customer data as a basis for new product development. The use of AI data is believed to be more accurate because it is armed with real and continuous analysis of customer behaviour.
- Data protection as a premium brand dignity: Although it can be used for new product development, customer data must also be protected. The number of data theft cases requires premium brands to respect customer data, especially wealthy customers. Going forward, companies that are able to protect customer data will be rewarded.
- Emotional Intelligence (EI) is important for maintaining relationships with customers: In developing a premium brand, whose decisions and purchases are of high value, of course, has a high risk. Therefore, not only AI is needed, but also good EI. Thus, premium brands must be able to control EI in serving rich customers so as to produce personal satisfaction.
- The need for a deeper relationship between premium brands and customers: In this case, Peter Fader, renowned professor from the Wharton School of The University of Pennsylvania, who is also the author of The Customer Centricity Playbook, said that soon Customer Lifetime Value will not only measure customer value based on purchases and lifetime referrals, but also based on quality and the quantity of relevant personal data they share with premium brands. This will lead to deeper relationships for brands and customers.
- The prediction and recommendation engine is getting more accurate: The success of premium brands is inseparable from prediction and recommendation engines. Therefore, the data entered as predictions and recommendations for purchasing premium brands must be accurate. Of course it is also a matter of how to handle customers personally.
So, in essence, in order to successfully manage premium brands, companies must be able to manage customer data as best they can. The newest strategy is to utilize AI, EI, and et cetera. These technologies will deliver premium brands to serve their customers more personally so that they become more loyal.