How Burberry is Using Big Data and AI to Drive Sales
The luxury fashion brand, Burberry is known for many things- the distinctive plaid colors, classic trench coat, and cashmere scarves- but two things you may not know that the brand is paving the way for are: artificial intelligence and big data.
With more than 400 stores in 50 countries, The British heritage brand is a leading player in the luxury fashion industry. With the shift to online retail, the brand, in 2006, decided to reposition itself towards digital technology with the aim of not just being a mere player in the digital space- but a dominating force.
Their success, achieved by the use of artificial intelligence and big data to enhance customer relationships and sales has been staggering.
Using Big Data in practice
Burberry was prompt in realizing that customers were happy to share their personal details, as long as it made their lives better. This discovery was used by encouraging customers to provide personal details by signing up for loyalty and reward programs. The information obtained was then used to offer product recommendations that are tailored to customer preferences- both in stores and online.
We know that this isn’t new: companies have been using customer data to promote personalized deals for a long time now. However, Burberry took it one step further by sharing data like social media habits and purchase history with the retail assistants via a tablet. So, the next time you go to a Burberry store, the sales assistant will give you handbag suggestions based on the last coat you purchased from them.
Additionally, products in stores are also fitted with RFID tags which send information to the customers’ mobiles, delivering information like product recommendations and styling suggestions.
Earlier, this kind of highly personalized shopping experience was only confined to online retail. The then-CEO of Burberry, Angela Ahrendts, explained that the strategy was to make “walking through our doors just like walking into our website.”
The digital transformation led to a 50% increase in repeat customers for the luxury brand, owing to the cutting-edge technology and seamless shopping experience.
The Leading Edge
When it comes to technology, Burberry was a front-runner in adopting new technology and diverse channels in the luxury sector. It led the pack by being the first brand in the world to utilize Snapchat’s Snapcode feature and also the first to have its own Apple Music channel. The company also harnessed Facebook chatbots during the London Fashion Week in 2016 to deliver updates to customers. Since then, the chatbot has expanded to other services like customer assistance. In fact, you can even use the chatbot to arrange an Uber ride to the nearest Burberry store.
The Future of Technology
The company won’t be stopping there, as it continues to search for new ways to revolutionize technology to maintain its position as a pioneer in the luxury segment. Burberry is looking to introduce AI to other areas of operations, including production and product development.
Although high-end fashion and technology may be an unlikely match, Burberry continues to thrive by creating an immersive e-commerce experience for its customers. It will be interesting to see if more luxury brands will jump on the bandwagon whether AI will become an all-pervasive force in the world of luxury fashion. Today, It is not enough to launch a mobile site or invest in high-quality imagery. After all, we now live in a digital era and there is no escaping from it!
