Burberry Drives Revenue and Loyalty with iPads

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Burberry Drives Revenue and Loyalty with iPads

By Nicole Giannopoulos - 11/18/2013
Burberry is known worldwide for its luxury retail experience, but now the retailer ups the ante with an iPad deployment to include loyalty, clienteling and a personalized in-store experience. The retailer has fully embraced and invested in digital both online and offline, a point of differentiation from many of its peers. iPads continue to encourage results in-store, which now comprise almost 30% of the online business. The new clienteling tool, customer One to One, is now live in more than 300 stores. Customers can also choose to buy a product online and collect it in-store at more than 80 locations globally. All of this has helped improve customer service and further drive revenue.
 
The sales associate is now armed with the tools that they need, including if the consumer opts in, their shopping behavior, what shops around the world they purchase from, what they have in their basket online, what they have said to friends about Burberry on Facebook, an item they want for their birthday.
"This is digital today and it's really just the ultimate in serving consumer as their behavior continue to rapidly change," noted Burberry CEO Angela Ahrendts on a recent call with analysts. "And I do believe that we are absolutely light-years ahead of our peers because of the investments we have made in this space."
 
Burberry 360 serves the consumer wherever they want to shop around the world, whatever platform they want to shop on. Over the past 18 months, the retailer has focused on building the clienteling tool branded as customer one-to-one, that app is now solidly on every sales associates' iPad in 300 stores around the world.
 
Burberry.com is the retailer's largest flagship store because it has the ability to carry eightfold what its largest Region Street location can carry. "More and more customers are shopping online before they go into a store, so the odds are, there are going to see a lot of stuff online and walk into that store and they won't have it, but the sales associates can get it for them, have it delivered in 24 hours regardless by ordering it from the iPad for them," continued Ahrendts.
 
Retail continues to be Burberry's primary driver with revenue up 17% and comparable store sales growth up 13% in both quarters.
 
"We are pleased with the momentum in the brands and business in what remains an uncertain macro environment," said Burberry CFO Carol Fairweather on the call. "We finished the half year with a strong financial position with the goal remaining to drive profitable growth and a further modest expansion of the retail wholesale margin over the medium term as we continue to balance growth, investment and efficiencies our pay as you go approach in action."
 
In terms of investment the retailer invests for the long term growth of the brands and will continue to do so. The strategies in digital and serving the consumer will continue to increase, leaving strategies and investment plans unchanged.
 
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