Artificial Intelligence and Machine Learning can help Luxury Brand Retailers engage more deeply with their customers. Chatbots, Smart Speakers and other A.I. Agents make these conversational experiences more engaging and can drive increase conversion and retention.

1. Artificial Intelligence
for Luxury Brands
Gam Dias, 1080bots

2. LUXURY BRANDS
Defining and differentiating

3. What makes ‘Luxury’?

4. Then, what is not Luxury?
• Luxury
• Premium
• Mass
• Discount

5. Dimensions of a brand
• Availability: Broad to Exclusive
• Price & Perception: Cheap to Expensive
• Brand Experience: Low to High Service Levels
• Sales Channels: Self-Service to Concierge Style
• Marketing Channels: Broad Reach to Highly Targeted
• Quality: Low to High Materials & Workmanship
• Customers & Loyalty: ‘Everybody’ to ‘The Club’

6. Luxury brand differentiation
• Have limited availability, rarity or exclusivity
• Are expensive and are perceived to be expensive
• Are associated with high levels of personal service
• Use sales channels that deliver a luxury experience
• Are very selective about their marketing channels
• Have high standards of materials and workmanship
• Are owned by a certain society of customers

7. Luxury brand customers
• Have less price sensitivity (plasticity)
• May be ‘time-poor’
• Can be more impulsive
• Purchase higher value single items
• Demand higher levels of attention
• Expect higher levels of service
• Enjoy being ‘in the club’ / appreciate exclusivity

8. ARTIFICIAL
INTELLIGENCE
A working definition of

9. Business Definition of A.I.
• Businesses are collections of processes:
– Digital and Analog
– Human and Machine
– Hybrids of the above
• All of these processes generate data that can be captured
• Artificial Intelligent systems collect that data, analyze it and
provide automated decision and execution
• A.I. agents provide smarter machine-human interfaces

10. Can we ‘see’ the A.I.?
1. Automated background processes that pre-process data –
e.g. predicting whether a customer’s order will be delivered
early, on-time or late
2. Systems that inform and enrich internal business users’ roles -
e.g. helping a concierge find the most appropriate product
for a particular customer
3. Conversational agents that interact with customers via text
or voice – e.g. helping a customer book an appointment for
a fitting at their home without waiting for an human agent

11. Introducing the A.I. Agent
• The role of an AI agent in the context of a luxury brand is to
– augment the human personnel to improve service quality and speed
– enrich digital experiences with the customer’s own recent context
• The capabilities of an AI agent are as follows
– conversing directly with the customer in natural language
– maintaining state allowing the customer to carry out transaction
asynchronously over extended periods
– handling complex multi-step queries with complex decision logic
– making predictions from large and disparate behavioral data

12. LUXURY BRANDS
How does A.I. help differentiate

13. How to apply A.I. Agents
Physical
Product
Proactive I.O.T. type
interactions directly
through the product
Allow sales to function
as a concierge and to
provide more advice
Enable higher service
levels and better
informed human agents Service
Experience
Sales
Process
An Exclusive
“Club”
Leverage the power of
an exclusive community
of customers

14. Customer acquisition
• Analyze browsing, purchasing and media
consumption online and offline to
– understand if an individual is in the right sub-segment
– predict when the customers have entered a buying cycle
– Identify affinity groups of customers
• Nurturing potential customers
– Before customers are ready to interact with a human, an AI
Agent can augment the website with a more incisive
experience

15. Information Seeking
• Provide deep product information
– Answer complex questions “I am looking for an square watch either
Patek Philippe or Piguet with a gray face”
– Disambiguate complex customer requirements to be addressed
by a human concierge “If you don’t have the blue one in stock, then I
will take the gray one for now, but we can swap it when the blue one arrives”
• Predict customer requirements
– Present new or limited quantity products to individuals most likely
to purchase

16. Decision-to-Purchase cycle
• Provide concierges and sales agents with
information about customers’ specific needs
• If the customer is shopping without human
assistance
– Maintain state, allowing the customer to complete their
purchasing cycle over a long period – perhaps days or
weeks – e.g. dining table purchase can take months
– Determine when to call on a human concierge to assist
before the customer experiences any frustration

17. Post Purchase
• Provide resolution to complex requests
– “Can you deliver the blue dress to my hotel this morning between 7am
and 8am and the red dress to the office at 5pm tonight”
• Continue to provide service “in-flight”
– “Hello, I’ve just been told that your new suit will be ready two days
early, we can deliver to your home address today if you would like it”
• Provide higher service quality than simple web UX
– “The stovetop that was installed is not working now, please send
someone to to fix it. Call this number for the maid: (212) 408 9710”

18. Loyalty
• When customers are not in a purchasing cycle, AI
Agents (maybe connected to purchased products
via I.O.T). will continue to enrich the experience
– “I can see that you’re enjoying your new Ferrari, we have a track day
coming up next month, can I make a booking?”
– “There’s a Schwarz Etienne Set auction online tomorrow, would you like
to view the catalog and make a bid?”
• Will help concierges identify customers who may be
dormant and are ready to spend again

19. A.I. Agents & Luxury Brands
• A.I. Agents work in the background and foreground to deliver better
insight into business processes. They enrich customer experiences by:
– providing a more useful interface via web and voice
– allowing human concierges to work smarter with better information
• A.I. Agents will eventually be used by all brands from Luxury to Mass, even
Discount because they are cheap and scalable
• For Luxury brands, A.I. will allow them to continue to differentiate
themselves by accentuating the brand attributes with better data
injected into to business processes

20. EZ@1080BOTS.COM
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21. YOU
Thank