The four major French luxury groups (Kering, Hermès, L'Oréal and LVMH) achieved an excellent 2018 year. They have a business figure of no less than 422 billion euros, or 25% of the CAC 40 ... A reason to compare these French brands with the American GAFA?
Luxury, the new digital gurus?
What is the mission of a chief data officer or data manager? Support the digital transformation of the company in all divisions: communication, marketing, sales but also R&D, development, supply chain ... Luxury brands all have a CDO as a core function in their team. In 2015, for example, Ian Rogers left Apple Music's management to become the CDO of the world's largest luxury group, LVMH. But what advantages does a luxury brand derive from digital development?
Digital, a tool for a customized service.
The luxury company continues to grow and internet sales contribute to this development. In addition to a tool for improving the efficiency of sales teams, digital technology contributes to improving the customer experience. Indeed, LVMH is now trying to use the personal information of its customers to build a personal experience.
Digital, a way to meet customers.
According to Ian Rogers, his mission is not to "sell luxury online, but to make online shopping a luxury. He takes the example of Chinese consumers, who have a lot of interaction via social networks and websites before making a purchase. Social networks and platforms such as YouTube, WeChat and Instagram created a direct link between the brand and the customer, and digital is now essential for luxury brands to retain their customers..
Digital, the key to conquering new customers.
Thanks to e-commerce, luxury brands can introduce their products to new consumers, also outside the big cities.
The challenge: data quality?
The most important mission of the CDO is to control the quality of the company's data. However, the valorization of this digital treasure is delayed by some methods, where transformation is necessary:
The Hell of sheets.
In many companies, customer data is exported in worksheets (Excel, Google Sheets, etc.) and re-processed for marketing campaigns or events. This practice provides a lot of rework and is error prone. It requires extra time and effort, especially since the worksheets multiply according to language, region, seller, ...
Databases are not eternal.
Many customers complain about the quality of the data due to inaccuracies or changes that have not yet been processed. The data that the brands possess is therefore no longer correct and this means a loss of time because the expected result is not achieved. Yes, but how to maintain a quality database? What strategies are there to ensure automatic maintenance of the data?
Consolidating a customer's data is crucial to personalizing the information. Today we see that the latter has exploded on different systems (campaign tools, erp, call centers, invoicing ...). This distribution of data leads to a loss, but can also lead to duplicate emails and thus create a sense of spam at the customer. Properly processed data prevents the sending of an advertisement to a customer who, for example, already owns the product.
Violation of the rules regarding respect for privacy.
The new privacy rules have discouraged more than one CDO. How to reconcile these new regulations in such a heterogeneous, complex environment. How to manage the customer's permission?
The challenges are numerous for this new Chief Data Officer. In the digital world, data is the treasure of the war between future champions, because they get to know their customers better, know their expectations and respond to their needs. It is better to get to know them better to serve them ...
Learning these techniques is vital for the survival of organizations in the world of tomorrow.