Luxury and Customer Relations: The customer data capture to create tailored experiences

The luxury market no longer just sells exceptional products; it aims to provide an ultra-personalized customer experience to meet the needs of an increasingly well-informed and demanding clientele.

To enhance customer loyalty, the luxury retail sector must carefully navigate the realm of data collection and usage. This article explores the challenges faced, particularly regarding international data protection regulations, and the innovative solutions that enable luxury brands to turn data into enriching, privacy-respectful customer experiences. 

 Overview of the Luxury Market and Its Specifics 

 Global Growth

In 2023, the luxury industry achieved sales of 1.5 trillion euros, marking a growth of 8 to 10% compared to 2022—a new record demonstrating its resilience in an increasingly challenging environment. 

The luxury goods segment, which includes fashion, leather goods, jewelry, watches, and beauty, grew by only 4%. However, this slow yet sustainable growth is expected to continue until 2030, with a steady growth rate of 5 to 7% per year, according to experts from Bain & Company. 

Chinese buyers have played a significant role in this growth. In 2021 and 2022, they accounted for between 17% and 21% of the global luxury personal goods market. This figure is expected to reach 40% by 2030. 

Geographically, each region is progressing, except for the Americas, which saw an 8% decline, despite being the largest luxury market alongside Europe. This significant decrease is due to macroeconomic uncertainties and a decline in aspirational consumers. However, a recovery in the North American market is expected from the second half of 2024. 

Asia, on the other hand, is experiencing strong growth, led by Japan with a 17% increase. China’s sales grew by 9%, less than expected, while South Korea declined and Southeast Asia saw very strong local demand, especially in countries like Thailand. 

Europe’s luxury goods market grew by 7%, a modest increase that still surpassed 2019 values, thanks to tourist purchases and an increase in average spending. 

  The Importance of Customer Experience in This Sector

Offering quality luxury products is no longer sufficient to satisfy increasingly demanding customers. Today’s consumers are highly solicited and feel they have already experienced everything. It is crucial for brands to differentiate themselves and maintain novelty to create a unique and memorable connection with customers. 

With an optimized customer experience, you can: 

 – Enhance loyalty and trust 

– Increase brand awareness 

– Encourage customers to become brand ambassadors 

 A good customer experience is characterized by ease of access, comfort, consistency, and hospitality. Thus, a customer-centric approach where humans are at the heart of the concerns is adopted. As a result, extreme personalization is becoming the strategy par excellence for offering a unique experience. 

  The Importance of Hyperpersonalization and Data Collection

Hyperpersonalization is a marketing strategy that involves tailoring offers, messages, and experiences to consumers based on their preferences, behaviors, and individual data. 

As a result, brands can create exclusive and unique offers, enhancing the feeling of exclusivity and prestige. This strategy is formidable, as 91% of consumers are more likely to shop with brands that offer personalized offers and recommendations, according to a study by Accenture. 

A deep understanding of your customers is essential to personalize the experience best. This is where customer data comes into play! By collecting the most relevant information, you can offer a five-star service. 

Challenges of Collecting and Using Premium Customer Data In-Store

Generally, the collection and use of sensitive data is no small feat. Between confidentiality and customer consent, the collection can be tedious to implement. This is even more true in the luxury sector, where discretion and demand are paramount. 

Clienteling Optimization 

Your customers are primarily looking for a unique experience where a close relationship is established with sales advisors. This is the whole interest of clienteling! This strategy consists of actively retaining the consumer by maintaining continuous contact with them. 

 Creating a customer account is essential! It will keep all your clients’ key information, including: 

  – Personal information (name, email, phone, address) 

– Their preferences (favorite product categories and brands, sizes or measurements for clothing) 

– Purchase history (including date and place of purchase) 

– Loyalty program (status in the program and points accumulated) 

– Preferred payment method 

– Personalized services (appointments with a stylist, etc.) 

– Shipping information and methods (a third party may receive the products) 

By using previously collected data, salespeople can greet customers by name and know their product preferences, offering personalized recommendations based on their specific needs. 

Note that creating a customer account is particularly essential for expensive purchases. By keeping their purchase history, you facilitate order tracking, exchanges, or refunds and can also help maintain a record of their own collection. This is an interesting asset to ensure a relationship of trust with your client. 

However, be careful not to collect data too detailed . Only collect relevant data! 

Operational Management of Data Capture in Stores

However, creating a customer file presents difficulties in its implementation. Indeed, the time to enter customer information can impact the in-store experience. Just like the difficulty of exchanging with a predominantly international clientele. Hence the importance of being multilingual! 

The staff must also be trained on the collection and use of customer data. Each country has its regulations in terms of legal notices, consent, and compliance. Any violation can lead to financial penalties and damage to the company’s reputation. 

 This training not only ensures compliance with current laws and regulations but also protects customers’ privacy. By understanding the specific requirements of each jurisdiction, staff can better adapt to compliant practices that promote trust and transparency in your interactions with clients. 

Data Sensitivity and Privacy

One of the specifics of a luxury clientele is the need for discretion. They often expect a high level of confidentiality because of their status (VIP/famous) or the costly nature of their purchases. If their personal information is compromised, they face risks to their privacy, such as phishing attempts or identity theft. 

Consequently, this type of clientele may be reluctant to give their personal information aloud directly at the checkout. 

Management of VAT Refund and Duty-Free in Stores 

Some merchants, particularly luxury brands, practice VAT refunds, allowing clients residing outside the European Union to benefit from a VAT exemption on their purchases. 

To be eligible, the traveler must be:  

– Aged 16 years or older 

– Staying in France for less than 6 months 

– A usual resident in a non-EU state or a third state 

The purchase must be retail merchandise, of a tourist and non-commercial nature. The total amount of purchases including tax must exceed €100, and they must have been made in the same store on the same day. 

To obtain this exemption, there are two possibilities: 

– Either the seller grants the VAT refund directly at the time of purchase, the sale being then made without tax (HT) 

– Or the sale is made including tax (TTC), and the VAT is refunded when leaving the European Union. In this case, the merchant must provide an export sales form with a barcode, which must be validated at the time of departure. 

But before anything else, the merchant must ensure that the customer is indeed eligible. To do this, they must collect sensitive information such as the address, age, and passport number of the client. These sensitive data are often communicated reluctantly aloud because of their confidential nature. 

Solutions to Meet These Challenges in Luxury Retail

Extension of Customer Base for Better Identification in Stores 

You probably already have a customer registration tool in your luxury stores and still want to optimize data collection. Client base extensions significantly improve the customer experience and optimize sales operations. 

The Neostore extension integrates with existing CRM tools: 



– Tulip 

– Proximity insight 

– Balink 

– Etc. 

NeoStore’s registration forms are designed to offer a smooth and personalized experience for managing various scenarios such as registration, identification, enrichment, and consent management. 

The icing on the cake, the registration forms are multilingual and adapt to each client, especially for those who wish to obtain a VAT exemption on their purchase in-store. 

The form provided will collect all the essential information for verifying eligibility for the VAT refund, including the client’s passport number. 

With a simple and intuitive information filling process, your sales advisors save time in handling customers. 

No more filling out lengthy paper forms! Customers can access their registration form simply by scanning a unique and secure QR code on their own mobile device. Perfect for preventing unauthorized access and protecting the privacy of customers’ personal data. 

 📌 Note: Neostore does not require the addition of a new app for salespeople, but integrates easily as an extension to the existing clienteling apps. 

As a result, the data collected via the registration forms can be immediately integrated into the store’s customer relationship management (CRM) system, facilitating real-time updating of client profiles. The risk of manual entry errors is significantly reduced, ensuring more accurate and reliable data collection. 

As a result, brands using Neostore to delegate client base registration have significantly improved the quality of their data, with a 20 to 40% increase in usable data. Just like the fact that brands base up to 98% of their clients via QR code. A serious competitive advantage! 

💡Tip: Do you want to register a client, but they are in a hurry? Send a Neostore link via Whatsapp, inviting them to create their account later. This is also an excellent way to develop social selling in-store! 

 Strengthening Data Protection and Consent

The implementation of client base extension tools such as Neostore offers serious advantages in terms of personal data protection. These systems are often designed to integrate the latest legal requirements, thus reducing the risk of non-compliance and potential penalties. 

They also allow for effective management of client consents, ensuring that data is used only for purposes explicitly approved by the client. 

This strengthens clients’ trust and ensures compliance with privacy protection laws. 


To stand out in the highly competitive luxury sector, it is crucial to offer exceptional client experiences. Hyperpersonalization should be at the heart of your strategy, with a human-centered approach to interactions.

It requires a thorough collection of various types of data to provide services and products tailored to each individual. However, data collection must be carried out in a way that does not compromise the confidentiality and comfort of clients. 

For this purpose, client base extension tools integrate with existing CRM tools to facilitate and secure the registration of information via multilingual forms, accessible by QR code or unique code. As a result, data protection and client consent are strengthened. 

An undeniable asset to improve the client experience and maintain your competitiveness in the global luxury market! 

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