Key Success Factors For VIP Customer Experiences

A Case Study for a Luxury Skincare Brand in Northern Asia


The Context
Exclusive Experiences in Loyalty Programs: The Key to VIP and VVIP Retention and Competitive Dominance

The highly competitive nature of the skincare luxury market in North Asia demands an intense focus on customer loyalty, particularly within the VIP and VVIP segments. While these segments comprise a small percentage of the overall clientele, they account for a substantial portion of business revenue. Fostering customer loyalty among these high spenders has therefore become a critical success factor for achieving both immediate and long-term business success.

One of our prestigious clients, a leading skincare group, aimed to increase the retention and enhance the loyalty of their VVIP customers by providing personalized and exclusive gifts and experiences. These offerings not only surpass those of competitors but also foster positive word-of-mouth.

CXG's steps to enhance VIP customer experience

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An Insight-Driven Approach to Enhance VIP Loyalty

In an endeavor to enhance VIP loyalty, CXG took on a comprehensive strategy across four key markets: Mainland China, Taiwan, Japan, and Korea. A series of research activities were conducted to gather crucial insights and data.

Desk Research & Expert Interviews: Extensive desk research was performed, paired with in-depth conversations with industry experts. This approach is intended to gather intelligence on VVIP programs, events, and experiences organized by luxury brands across diverse sectors such as skincare, watch, and jewelry, fashion, and others.

Customer Research: Online focus groups were utilized to gather critical insights directly from customers. The intention was to gauge customers’ experiences with VVIP programs offered by different brands and to identify key elements driving a “WOW” experience.

Staff Interviews: In-depth phone interviews were conducted with senior Beauty Advisors with extensive experience in catering to VVIP customers. These interviews provided an insider’s view on delighting high-end customer profiles throughout their entire brand journey and relationship. 

The Outcome
From Insight to Impact: Transforming Research into VIP Loyalty Strategies 

Through CXG’s detailed analysis, three fundamental components were identified to structure a successful VIP loyalty program: the human factor, involving interaction with the beauty advisor; events; and gifts. Focused on these key elements, the research provided essential insights, outlining successful strategies and potential pitfalls, aimed at enhancing the VIP experience and loyalty programs within the skincare industry.

The study delivered the following crucial findings: 

  1. Maximizing the Role of Beauty Advisors: The research revealed the current best practices employed by the brand’s Beauty Advisors that have the potential for scalability. These practices could be further refined and scaled up to consistently provide exceptional experiences to VVIP customers.
  2. Benchmarking VIP Experiences and Events Across Luxury Industries: The study identified best practices around VIP events across diverse luxury sectors, including skincare, watches, jewelry, and fashion. These insights offer valuable inspiration for crafting unique and exceptional experiences that will resonate with VVIP customers.
  3. Elevating Gift Giving to ‘WOW’ VVIPs: Gifts are an essential expectation of VIP membership, but they also provide an opportunity to create delightful and memorable experiences. The study pinpointed specific expectations that could turn ordinary gift-giving into a memorable moment for the VVIPs.
  4. Market-Specific Initiatives and Trends: The research recognized market-specific initiatives and trends relevant to the four key markets: Mainland China, Taiwan, Japan, and Korea. Understanding these market nuances empowers the skincare group to tailor their VIP experience and loyalty programs to better cater to the preferences and cultural context of each market. 

Success factors strengthen lasting loyalty

Elevating VIP Loyalty Programs in Skincare  

With the insights from CXG’s rigorous research, the skincare client now has a well-rounded understanding of VIP customer expectations, industry best practices, and innovative approaches from other luxury sectors. These insights empowered them to strategically close the identified gaps and enhance their VIP loyalty programs, delivering personalized, exclusive benefits that truly resonate with their VVIP clientele.

Through this informed and strategic redesign, our client is expected to not only strengthen lasting loyalty but also foster customer advocacy, reinforcing their leading position in the highly competitive landscape of North Asia’s luxury skincare market.

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