Dive Brief:
- Two-thirds of luxury consumers say they use AI features when they shop for fashion online, according to a survey of 1,688 people released last week by Saks Global. The number of shoppers using AI is up 2 percentage points compared to the same time in 2024.
- The most common use of AI for online shopping was providing body measurements for size recommendations or product visualization. However, respondents said it is more unlikely they will upload personal pictures for virtual try-ons.
- The vast majority of luxury shoppers, 94%, say they are likely to engage with personalization activities, according to the survey. The top actions were creating an account, generating a wishlist and answering questions about their shopping preferences.
Dive Insight:
Luxury shoppers have high expectations for the service they receive compared to non-luxury shoppers, particularly when it comes to convenience, according to Matt Moorut, senior director analyst at Gartner. However, not all forms of personalization are equal.
“Personalization needs to be in support of better customer experiences,” Moorut told CX Dive in email commentary. “It needs to help customers achieve their objectives, rather than just showing that you know customers. Focusing on the benefit is a way of avoiding ‘creepy’ personalization, which can deter customers from engaging with brands.”
Luxury consumers’ top personalization demand is content and recommendations that offer exclusive access to limited products, rewards and offers, according to the Saks study. They also seek reminders of these offers.
AI can be a boon for retailers aiming to win personalization-hungry luxury customers, and the right precautions can maximize that opportunity.
Luxury shoppers usually adopt new technologies faster than the general population, and AI can offer retailers a leg up with this demographic, according to Moorut. However, consumers in general have mixed feelings about generative AI and luxury shoppers are no exception.
“Data privacy is increasingly a public interest,” Moorut said. “If you consider that consumers are often hesitant to provide a cell phone number due to privacy concerns, you can imagine how they would perceive the risk of providing something like a full body image.”
High-profile data breaches are weighing on consumer trust as well, according to Julie Geller, principal research director at Info-Tech Research Group. This could contribute to them refraining from sharing images while engaging with less personal options.
“Luxury shoppers, in particular, are wary of potential data leaks and the misuse of personal images, fearing they could be exploited for scams or unauthorized marketing,” Geller told CX Dive in email commentary. “Additionally, many value their anonymity and prefer to keep their shopping habits private, further discouraging them from sharing personal photos.”
AI can still enhance the customer experience without needing customers to share individualized personal information.
Luxury retailers can use AI with their own customer data to help them predict consumer preferences and deliver the right personalization to meet sophisticated expectations, according to Geller. They can also forecast trends and demands with greater accuracy to ensure they have what customers want available for purchase.
