When it comes to luxury brands, customer relationships are everything. The goal isn’t just to get one-time buyers but to build long-lasting, loyal relationships that translate into repeat purchases and a higher customer lifetime value (CLV). Personalised email marketing is one of the most powerful ways to increase this CLV.
Personalisation isn’t just a nice-to-have anymore—it’s essential. Luxury customers expect tailored experiences that speak to their individual tastes and preferences. By leveraging personalised email marketing, luxury brands can keep their high-end customers engaged, loyal, and returning for more.
Why Personalised Email Marketing is Key for Luxury Brands
Luxury customers are different from the average consumer. They expect a higher level of service, attention to detail, and exclusivity. They want to feel like brands understand them on a personal level. This is where personalised email marketing comes into play. Unlike mass email blasts, personalised emails make customers feel valued and recognised.
Personalised emails help luxury brands maintain strong connections with their customers, offering them relevant content, tailored offers, and exclusive opportunities. This enhances the customer experience and encourages repeat purchases, directly impacting customer lifetime value.
Building Trust and Loyalty
Building trust and loyalty is one of the most important aspects of increasing CLV. Personalised email marketing allows luxury brands to gain this trust by delivering a more intimate and relevant experience. When customers receive emails that cater to their specific interests or past purchases, it shows that the brand understands them and values their business.
Example:
If a luxury furniture brand knows that a customer has previously purchased a premium sofa, they can send a personalised email showcasing new decorative cushions, coffee tables, or throw blankets that complement that sofa. This targeted approach makes the customer feel valued and increases the likelihood of a repeat purchase.
How Personalised Email Marketing Boosts Customer Lifetime Value
One primary goal for any business is to encourage repeat purchases, keeping customers engaged and returning for more. This is just as crucial as attracting new customers.
According to Smile.io, once customers purchase from your online store, they have a 27% chance of returning for a second buy. This probability rises to 49% after their second purchase and reaches 62% following their third purchase.
Personalised email marketing is a practical approach for enhancing customer lifetime value (CLV) and driving repeat purchases, as it allows luxury brands to cultivate lasting relationships with their clientele. Let’s explore how this strategy works:
1. Tailored Product Recommendations
Personalised product recommendations are a simple yet effective way to keep customers coming back. By analysing past purchases, browsing behaviour, or preferences, luxury brands can send emails recommending products curated explicitly for the customer.
For instance, a luxury skincare brand could send an email suggesting new products based on a customer’s previous purchases or areas of concern. By sending relevant, personalised offers, customers are more likely to return and buy again, increasing their lifetime value.
2. VIP Programme and Exclusive Access
Another powerful tool in personalised email marketing is offering VIP programmes and exclusive access. Luxury customers love feeling like they’re part of something special. Brands can create VIP programmes that reward loyal customers with exclusive benefits like early access to new collections, private shopping events, or even personal consultations. According to Business Wire, around 95% of companies say loyalty programme members spend more than non-members.
Through personalised email marketing, luxury brands can invite their most valuable customers to join these exclusive programmes or offer them sneak peeks of new products before anyone else. These kinds of perks drive repeat purchases and strengthen brand loyalty, directly impacting customer lifetime value.
3. Re-Engagement Campaigns
Not every customer will always stay engaged, which is why re-engagement campaigns are crucial. With personalised email marketing, luxury brands can identify customers who haven’t purchased in a while and target them with tailored offers or incentives to bring them back.
For example, if a customer hasn’t shopped in six months, your brand could send them a personalised email offering a special discount. Re-engaging these customers with an incentive brings them back into the fold.
4. Post-Purchase Engagement
After a customer makes a purchase, the relationship shouldn’t end there. Luxury brands can use personalisation to maintain engagement after the sale. Sending follow-up emails with product care tips, complementary items, or even a thank-you note can go a long way in keeping the customer engaged and encouraging future purchases.
Example:
A luxury watch brand could send an email with care instructions for a newly purchased watch, followed by recommendations for additional straps or accessories. This kind of post-purchase engagement provides value to the customer and increases the likelihood of repeat business.
Segmenting Your Audience for Better Results
Audience segmentation is a key strategy in personalised email marketing. By dividing your email list into specific segments based on factors like purchasing behaviour, location, and customer preferences, you can send more relevant and targeted emails.
High-Value Customers
For high-value customers—those who have already made significant purchases—brands should focus on deepening the relationship. These customers are more likely to spend more if they feel valued and appreciated. Luxury brands can use personalised email marketing to offer these customers special perks, such as exclusive previews or early access to a sale or product launch.
This exclusivity creates a sense of belonging to an elite community, encouraging loyalty and continued investment in the brand. Your target market wants to feel cared for when they are making significant financial commitments, and providing this level of attention is exactly what they deserve.
Personalised Email Marketing for New Customers
For new customers, personalised emails can help build the foundation of a long-term relationship. Since there’s no past purchase history to draw from, luxury brands can focus on other ways to personalise their communications. A welcome series is a great starting point; it can introduce the brand, highlight its values, and showcase a curated selection of offerings based on customer preferences gathered during sign-up.
Example:
Luxury travel brands can ask new customers to complete a brief questionnaire during the onboarding process. The questionnaire allows customers to indicate their travel preferences, desired destinations, and types of experiences they enjoy—such as adventure, relaxation, or cultural exploration. This information can be used to craft tailored travel packages and content that resonates with customers’ specific interests.
Measuring the Impact of Personalised Email Marketing on CLV
Understanding the effectiveness of personalised email marketing on increasing CLV, it’s important to track key performance indicators (KPIs). These include:
- Repeat Purchase Rate: How many of your customers are coming back to make another purchase? If your repeat purchase rate is rising, it’s a sign that your personalised email campaigns are working.
- Average Order Value (AOV): Are customers spending more on each purchase? Personalised email marketing can increase AOV by recommending complementary or higher-end products that align with the customer’s interests. More than 39% of consumers are open to paying higher prices for a brand they are loyal to, even when more affordable alternatives are available.
- Customer Engagement: How engaged are your customers with your emails? High open rates and click-through rates on your personalised emails indicate that your content resonates with your audience and keeps them interested.
- Customer Retention Rate: This metric measures how many customers you can retain over a given period. High retention rates mean that your customers are staying loyal.
Conclusion: Personalised Email Marketing is the Key to Increasing CLV for Luxury Brands
Increasing customer lifetime value for luxury brands is about building strong, long-term relationships. Personalised email marketing is one of the most effective ways to do this. By sending tailored content, exclusive offers, and re-engaging customers at the right moments, luxury brands can boost repeat purchases, strengthen brand loyalty, and drive higher customer lifetime value.
The luxury customer expects more, and personalised emails allow brands to meet—and exceed—those expectations. When done right, personalised email marketing is a powerful tool that keeps luxury customers engaged, satisfied, and returning for more, making them loyal advocates for life.
Recommended read: The Importance of Personalised Emails