The Changing Face of Luxury Loyalty: Quality, Authenticity, and Personalisation in the American Market
Luxury consumers in America are redefining loyalty beyond traditional deals and points, with quality and authenticity taking precedence in their purchase decisions. A recent survey revealed that more than half of luxury shoppers prioritize quality when making purchases, emphasizing core luxury values even in times of economic uncertainty. Additionally, over 40 percent of luxury consumers consider authenticity a crucial factor in building loyalty, especially among those who prefer pre-owned luxury items.
The rise of luxury resale shoppers in the US is expected to increase by 54 percent, with a significant number of women planning to invest in pre-loved products in the next 12 months. Companies like The Real Real are capitalizing on this trend by offering early access loyalty schemes driven by stringent authentication practices to build trust among consumers.
While factors influencing luxury purchases are similar across genders, men tend to prioritize ease and speed of delivery, with free delivery being a key consideration for older customers and low-tier luxury spenders. Personalization is also emerging as a purchase influencer, particularly among men, millennials, Gen Zs, and top-tier spenders, suggesting an opportunity for brands to expand personal shopping and concierge services to retain these customers.
In response to the changing landscape, luxury brands are focusing on online personalization as a loyalty driver, with high-tech personalized experiences becoming increasingly important. The Neiman Marcus Group, for example, is set to launch a new app that centers around its ‘style advisor’ to provide personalized recommendations and promotions based on customer behavior.
Despite the loyalty cultivated by luxury frontrunners, a significant number of American luxury shoppers have switched brands or products in the last six months, highlighting the importance of discovery in the luxury market. Brands are now focusing on meeting customers at multiple touchpoints and enhancing their shopping experience to overcome challenges in loyalty programs and engagement levels.
