How To Increase Revenue Amidst Luxury Sector Sales Decrease
05th February 2024
“This is a defining moment for brands, and the winners will separate themselves through resilience, relevance, and renewal—the basics of the new value-centred luxury equation.”
– Claudia D’Arpazio, Forbes.
Is your luxury brand ready for the challenges that 2024 will bring?
Is your luxury brand looking for innovative ways to retain and gain customers?
With companies like Burberry seeing a 7% decrease in sales during the 2023 golden quarter, concerns are rising across the luxury sector regarding profitability and brand security. Despite initial hopes of a much-needed boost in sales during the festive season, ‘fragile consumer confidence’ and other socio-economic factors have resulted in a muted 4% growth estimate for 2024.
How can my luxury brand increase revenue and customer loyalty?
Whether your business is a luxury shopping centre or a retail store; exploring ways to increase customer spend per transaction is most likely at the forefront of your strategy. According to Blackhawk Network, the secret could be implementing a gift card programme into your strategy! Their research shows that 90% of customers are willing to spend more than their gift card allowance, increasing your revenue per transaction.
According to fiserv.com, UK shoppers on average spend £41 more than their gift card allowance. For those receiving a gift card, many view the amount as ‘free’ money to spend. Therefore, once they reach the gift card total, only then will they technically be spending their own money. This means people who have a gift card to spend will be more likely to buy an item larger or more expensive than they would do normally.
Rewards and Incentives
Alternatively, Crunch can be used within the luxury brand for customer rewards and incentives. If a customer is loyal to your company, why not offer customers who assign funds to their own branded card a loyalty discount? Not only does this mean customer funds are specifically allocated to frequent spending at your store or website, but customer loyalty can be rewarded with exclusive prices and discounts.
Why create or renew my luxury gift card programme with Crunch?
Crunch has issued over 1 million gift cards across the retail sector. We are a trusted and competent solution for your luxury brand, due to our fullstack solutions including app design and microsite generation. Our cards can be white labelled and designed to suit your needs, meaning you can truly produce a product that is both beautiful and effective for your high-end clients.
Better yet, your Crunch gift cards can be processed at a faster rate than any alternatives. Due to this, your product could be delivered in full with customer support included within a matter of weeks. Because of our fast card processing, there is no need to hold stock of your cards, making for a safer and hassle-free solution than third-party cards.
‘Crunch’ the numbers with us.
Want to find out about our packages, and whether Crunch could revolutionise your luxury brand gift card solution? Get in touch with our passionate team today!
Crunch provides all of the components you need to launch your own bespoke card programme.Learn more
Your new go-to destination for revolutionising the gifting experience!Introducing Giftstarr