Luxury brands fail to use e-mail marketing to its full potential, study reveals

Most luxury brands are not taking advantage of e-mail as an effective marketing tool, according to a recent report by customer engagement specialist Contact Lab in conjunction with Exane BNP Paribas.

The study, entitled "The Dawn of Luxury CRM: E-mail Do's and Don'ts", surveyed 30 luxury brands from the US and Italy, analyzing the effectivity of their e-mail marketing strategies.

It found Cartier and Burberry as leaders of both e-mail strategy and proficiency, with only Cartier including a "Book an Appointment" button and Burberry incorporating a "Collect in Store" link. Overall, however, the luxury sector fails to integrate e-mails with other e-commerce channels.

Additionally, the majority of brands lack advanced segmentation and strategic planning, thereby failing to provide customers with a personalized experience.

Dolce & Gabbana and Armani address customers by name or gender, but very few brands asked customers for more detailed information for advanced targeting. This includes asking for ZIP codes for geotargeting or content preferences for more relevant advertising messages.

"Brands need to be more strategic in their use of e-mail marketing and recognize that consumers are more demanding than ever. If content does not cater to their needs, their impression of a brand will be lowered and they will eventually unsubscribe," said Marco Pozzi, author of the research.

"E-mail marketing offers the opportunities for brands to receive a large amount of traffic through portable devices like smartphones and tablets. With modern customers having an overload of content and often being bombarded with e-mails, brands need to ensure the e-mails they distribute are relevant and capture the attention of the consumer," he added.

The report also noted that through effective online marketing, which includes e-mails, revenue for fashion and luxury brands can increase by up to 40 percent.

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