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Luxury Brands are Using Chatbots

Luxury Brands are Using Chatbots

David Yurman has joined the growing legions of luxury brands using chatbots for sales and customer service. This holiday season is the first year David Yurman has used the Facebook Messenger Gifting Bot. The bot helps shoppers find the perfect gift – for him, her, or themselves – filtered by category, metal and price. Once an item has been selected, the bot takes shoppers to the David Yurman website to see more details about the item they’ve chosen and complete the purchase. The bot also provides traditional customer service functions by letting shoppers know where the closest David Yurman location is and connect them to live customer service representatives.

Luxury brands have been rumored to be slow adopters of martech, but the reality is that the jewelry and apparel sector are among the most enthusiastic users of chatbots. Alexander Wang has used chatbots in a limited way to sell its Adidas collection; Burberry and Tommy Hilfiger use chatbots more extensively.

[Tweet “75% of all web users use one or more messaging apps.”]

To understand why chatbots are so appealing to luxury brands, consider that Global Web Index reports that 75% of all web users use one or more messaging apps. Messenger is far and away the most popular messaging app, with WhatsApp and WeChat following in terms of user numbers. Messaging has become a widespread, everyday behavior for the majority of shoppers; they are comfortable using apps to communicate directly with brands.

Chatbots are a way to make this sort of direct communication cost effective for the brand. Chatbots are available 24 hours a day, 7 days a week, 365 days a year. They never get tired, need breaks, or advocate for higher wages. Chatbots reduce the impact abusive customers and internet trolls have on human staffers. They are able to handle increasingly complex tasks at least as adeptly as their human counterparts, with some researchers suggesting that over time, the chatbot’s error rate will prove to be lower.

The other side of this equation is that many shoppers – including luxury shoppers – prefer to interact with chatbots, rather than people. 40% of Millennials report interacting with a bot at least daily; given the increasing ubiquity of digital assistants like Alexa and Google Home, that number is sure to increase. 83% of shoppers say successfully interacting with chatbots would increase the level of loyalty they felt for a brand.

Clearly luxury brands have identified and are making good use of chatbots. The question remains when will we see retailers in other markets and indeed, other business types, begin their embrace of chatbots?

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Creative Director/Senior Designer

Tom DiGrazia

With over a decade and a half of professional design experience, Tom brings his knowledge of design principles and focus on user experience to every aspect of his contribution to TTG. Paying special attention to each client’s brand, personalized needs and individual interests, he strives to create compelling concepts utilizing intuitive and highly-refined design solutions. In addition to traditional and digital design work and oversight at TTG, Tom also boasts a wide portfolio of web development projects with the company, allowing him to stretch his CSS and HTML skills across multiple platforms and disciplines. He feels that being a designer in the digital landscape of websites, eCommerce solutions, email marketing platforms and social media, it is important to understand the code that goes into these areas as it assists his ability to tailor designs specifically targeted to achieve the best end result and further builds understanding and communication with backend development teams.

In his off hours, Tom is an avid pop culture enthusiast, staying up to date on the latest shows, films, comics and games. He can also typically be found taking part in a whole host of artistic activities that help him further stretch his creative legs. Regardless of the activity, Tom is always accompanied by his dog, Eli, and his cat, Tib.

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Courtney Dumont

As Senior Marketing Strategist & Analyst at Technology Therapy Group, Courtney is energized by the ability to flex both her left and right brain daily. Courtney discovered her passion for Marketing at Bryant University, where she spearheaded research on students’ perceptions of Social Media Marketing for her Honors Capstone Project. After graduating Bryant in 2012, she joined the Technology Therapy team, where she’s honed her skills in social media, search and social advertising, email marketing, SEO, and more.

Since joining the team, Courtney has created digital marketing strategies and managed campaigns for clients across the country, ranging from plastic surgery centers, to jewelry stores, to construction companies. With a cohesive, cross-channel approach and a focus on data-driven decision making, she has increased their leads by up to 217%. But Courtney doesn’t leave her zeal for social media at the office; she also runs a local foodie Instagram account with her husband to document their meals across Rhode Island and beyond. Check them out: @hoppilyfed.

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