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October 3, 20250 citations

Optimizing Customer Experience in the luxury industry through AI technologies. A firm perspective

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PDPradeep Kumar Ponnamma DivakaranLILouise IVARS

Key Points

  • Customer experience optimization through AI improves loyalty for luxury brands and enhances purchasing.
  • Findings highlight the importance of personalization, with AI leveraging purchase forecasting for better service.
  • Semi-structured interviews with experts reveal AI's greater impact on online customer interactions versus in-store.
  • This emphasizes the need for luxury brands to balance technology and traditional customer engagement approaches.

Abstract

The aim of this study is to examine the possible impact of artificial intelligence (AI) on enhancing customer experience throughout the customer purchasing process, specifically within the luxury sector. To achieve this objective, we carried out a qualitative investigation consisting of semi-structured interviews with experts in artificial intelligence and managers specializing in customer experience. The findings show that customer experience plays a significant role in luxury brands' ability to win customer loyalty. AI has the ability to improve customer experience by offering highly personalized services through the use of purchase forecasting and automatic customization. This allows luxury brands to provide the right products to the right customers at the right moment. Furthermore, our research emphasizes that AI has a greater capacity to customize the online customer experience compared to in-store experiences, given that customers in the luxury sector have a preference for a conventional experience involving human interaction.

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Cite This Study

Divakaran et al. (2024) studied this question.

synapsesocial.com/papers/68e03505f0e39f13e7fa3e76https://doi.org/10.20429/amtp.2024.49
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