NEIMAN’S 4.0: A four-pillar approach to using the correct data to build relationships with key stakeholders for longevity.
This thesis, a comprehensive 350-page document published by SCAD, was developed as part of my MFA in Luxury and Brand Management. This in-depth study, titled "Neiman's 4.0," explores the transformative potential for Neiman Marcus in the dynamic landscape of luxury retail. Inspired by the unique challenges multi-brand luxury retailers face, the thesis addresses the pressing need for maintaining longevity in an ever-changing retail environment, especially as luxury clients age and brands increasingly focus on internal operations.
"Neiman's 4.0" is structured around four pivotal pillars: Relationships with Luxury Brand Partners, Existing VICs, Sales Associates, and Future Customers. Each pillar is meticulously designed to leverage data-driven insights and innovative technologies to redefine customer experiences, foster deeper relationships, and secure Neiman Marcus's position as a leader in the luxury retail sector. Key strategies include cultivating exclusive brand partnerships using advanced data analytics and RFID technology, launching a VIP members-only club, empowering sales associates with personalized tools, and extending the brand's reach through immersive virtual retail experiences and in-store body scanning technology.
This thesis sets a new standard for personalized, immersive, and unforgettable shopping experiences, offering a visionary roadmap for luxury retail in the 21st century.
Abstract
In the ever-changing landscape of luxury retail, this study steers Neiman Marcus through a transformative journey with Neiman’s 4.0 initiative, aimed at using thoughtfully and strategically collected data to redefine customer experiences, foster deeper relationships, and secure its position as a leader in the luxury retail sector. This paper presents a comprehensive overview of the Neiman’s 4.0 initiative, focusing on its four pillars: Relationships with Luxury Brand Partners, Existing VICs, Sales Associates, and Future Customers. Each pillar is meticulously designed to leverage data-driven insights, emerging technologies, and innovative strategies to drive revenue growth, enhance brand reputation, and create unparalleled customer value.
The first pillar emphasizes cultivating exclusive partnerships with luxury brands through advanced data analytics and RFID technology, enabling real-time performance monitoring and personalized insights for brand partners. The second pillar elevates the VIP customer experience by launching a members-only club targeting high-net-worth individuals and enhancing brand loyalty. The third pillar is empowering sales associates with data-driven tools and personalized recommendations to deliver exceptional service and drive sales. Finally, the fourth pillar extends Neiman Marcus’s reach to future customers through immersive virtual retail experiences, in-store body scanning technology, and targeted marketing campaigns in third spaces.
Image Source: Neiman Marcus Group
Key Findings
The following section will summarize overall key findings from both primary and secondary research, highlighting the high-level points driving final strategy development.
Focused Catering to the Ultra Wealthy: Neiman Marcus strategically targets the ultra wealthy segment of its customer base, recognizing the potential for long-term investments and substantial retention rates. Despite the advantages, there is an inherent risk in concentrating on a narrower audience, necessitating a balanced approach to both maintain and broaden their relationships with this exclusive group.
Expectations and Service Delivery: Ultra wealthy customers have limited time and expect exemplary service. Meeting these high expectations requires Neiman Marcus to make significant investments in customer service to ensure sustained customer loyalty over time.
Strategic Use of Data for Customer Retention: While the importance of data in enhancing customer relationships is widely recognized, many companies struggle to sift through vast data pools to extract meaningful insights. For Neiman Marcus, effective data utilization involves internal adjustments in both their technological systems and organizational culture. This dual approach allows them to use quantitative data as an initial guide and complement it with qualitative data to solidify their strategies.
Luxury Consumers and Omnichannel Integration: Today’s luxury consumers expect a seamless shopping experience across all channels, from physical stores to online platforms. This omnichannel expectation compels Neiman Marcus to integrate their service offerings effectively across diverse customer touchpoints, ensuring a cohesive and high-quality shopping experience.
Adapting to Changes in Brand-Retailer Dynamics: The relationship between brands and retailers is evolving, with a growing need for deeper collaboration and shared objectives. For Neiman Marcus, this means forging stronger partnerships with luxury brands to create exclusive and compelling offerings that resonate with the ultra wealthy clientele, thereby reinforcing their market position and enhancing consumer loyalty.
Advantages from Emerging Technologies
Artificial Intelligence (AI): AI can enhance personalization, offering tailored recommendations and predictive analytics to better serve the ultra wealthy clientele. This leads to improved customer engagement and higher satisfaction levels.
Radio Frequency Identification (RFID): By implementing RFID technology, Neiman Marcus can achieve greater inventory accuracy and enhanced supply chain efficiency, leading to quicker, more reliable service.
Image Source: Neiman Marcus Group
PILLAR 1.0: Relationships with Sales Associates
OBJECTIVES:
The objectives for Pillar 1.0: Relationships with Sales Associates, underscore Neiman Marcus’ commitment to empowering its frontline staff as pivotal assets in delivering exceptional customer experiences. In this strategic endeavor, Neiman Marcus aims to equip its sales associates with cutting-edge tools and personalized insights to enhance customer interactions, drive sales, and deepen brand loyalty. Key objectives include empowering sales associates through comprehensive training and access to advanced technology, facilitating personalized customer interactions based on data-driven insights, and integrating seamless omnichannel experiences to ensure consistency across all touchpoints. Additionally, recognizing and incentivizing high-performance sales associates will foster a culture of excellence and drive continuous improvement. By prioritizing the development of strong relationships between sales associates and customers, Neiman Marcus endeavors to uphold its reputation for high-touch customer service and remain at the forefront of luxury retail innovation.
Key highlights for how Neiman Marcus can use data to empower sales associates include…
Predictive Analytics: Leveraging predictive analytics to anticipate customer needs and preferences before they are expressed. By analyzing historical data and identifying patterns, sales associates can proactively suggest products or services likely to resonate with each customer, enhancing the overall shopping experience. Predictive analytics algorithms will become more sophisticated, leveraging advanced machine learning techniques and artificial intelligence to analyze vast amounts of data in real time. This will enable sales associates to anticipate customer needs with even greater accuracy and precision, leading to more personalized recommendations and higher conversion rates.
Seamless Integration with CRM Systems: Integrating data analytics tools seamlessly with the customer relationship management (CRM) system, CONNECT, to ensure sales associates access comprehensive customer information in one centralized platform. This streamlines the sales process, reduces administrative tasks, and allows sales associates to focus more on building relationships and driving sales.
Augmented Reality (AR) and Virtual Reality (VR): AR and VR technologies will revolutionize how customers interact with products and brands, allowing sales associates to provide immersive virtual shopping experiences. Sales associates could use AR/VR tools to showcase products in lifelike 3D environments, virtually try on clothing and accessories, and create personalized virtual showrooms tailored to each customer’s preferences.
Internet of Things (IoT) Integration: Integrating IoT devices and sensors into retail environments will enable real-time tracking of customer interactions and behaviors. This data can be used to optimize store layouts, product placements, and marketing strategies, allowing sales associates to provide more targeted assistance and recommendations based on customers’ physical movements and interactions within the store
Customer Sentiment Analysis: Natural language processing (NLP) algorithms will analyze customer feedback, reviews, and comments to gauge sentiment and identify areas for improvement. Sales associates can use sentiment analysis insights to address customer concerns, tailor their interactions accordingly, and enhance overall customer satisfaction.
Predictive Customer Behavior Modeling: Predictive modeling techniques will enable sales associates to anticipate customer behavior and preferences based on historical data and contextual factors. By understanding customer lifecycle stages, purchase patterns, and engagement levels, sales associates can tailor their interactions to guide customers through the sales funnel and drive conversions effectively.
Data Flow Chart by Lawson Burrows
Neiman Marcus CONNECT App (Source: Neiman Marcus)
PILLAR 2.0: Relationships with Existing VICs
OBJECTIVES:
Pillar 2.0 focuses on nurturing and enhancing relationships with Neiman Marcus’s existing Very Important Customers (VICs) to drive loyalty,- engagement, and advocacy. With VICs accounting for a significant portion of the company’s revenue, it is imperative to anticipate their needs and provide exceptional experiences that reinforce their loyalty to the brand. The objectives for Pillar 2.0 are designed to elevate the VIP customer journey and foster an aura of exclusivity that resonates with high-net-worth individuals nationwide. Through strategic initiatives such as initiating a prestigious members-only club, partnerships with luxury concierge services, and hyper-personalized experiences powered by data insights and emerging technologies, Neiman Marcus aims to solidify its position as the ultimate destination for luxury shopping and personalized service. By prioritizing the needs and preferences of existing VICs and enhancing their overall shopping experience, Neiman Marcus seeks to strengthen customer loyalty, drive repeat business, and further establish itself as a leader in the luxury retail sector.
Neiman Marcus currently has its InCircle loyalty program catered to the aspirational shopper, but there is a next level of clientele that they cater to who have zero interest in a loyalty program. Neiman Marcus gains their loyalty in totally different ways - through one-on-one relationships, exclusive offers, and a service-driven approach. The ultra-wealthy are discreet. They don’t need their purchasing habits flaunted by the store. By implementing a Members Only club, top customers will have the opportunity to be treated to top-tier offerings at a level they are most comfortable with. A small percentage of customers, decided on by top sales associates, will be invited to become members. This will not involve any fees on their behalf, just an offering of CRM services available only to them. The following will be perks that these customers can find in the Neiman Marcus Members Only Club:
A Partnership with Luxury Lifestyle Management Firm, Quintessentially, for Personal Experience Curation and Task Management: Neiman Marcus already has an in-house concierge, but by partnering with Quintessentially, the company can take the concept of VIP planning and task management to the next level. Quintessentially can also be utilized for personalized experience curation and tailor trips to customers’ individual tastes. From selecting the destination of a private island getaway to designing the itinerary of a bespoke luxury car rally, every aspect of the experience can be customized to delight and surprise each member. Offer completely personalized get-aways to clients. Nothing in this program will be “one size fits all.” Instead, customers will know inherently that Neiman Marcus created the whole initiative around them. The image to the right outlines the capabilities of Quintessentially. Page 154 shows what the Neiman Marcus customer experience may look like through this partnership.
Predictive Insights for Exclusive Events: Use predictive analytics to anticipate members’ desires and preferences, allowing Neiman Marcus to proactively find and secure tickets for exclusive events that resonate with their interests. By analyzing historical data and behavioral patterns, combined with qualitative insights provided by sales associates, the brand can identify emerging trends and curate experiences that align with members’ evolving tastes and preferences. Contextual Recommendations and Suggestions: Provide members with contextual recommendations and suggestions based on their current location, preferences, and interests. By leveraging location-based data and contextual intelligence, Neiman Marcus can offer personalized recommendations for nearby attractions, dining options, and leisure activities, enhancing members’ overall experience and satisfaction. Leveraging predictive modeling and the partnership with Quint- essentially, Neiman Marcus can use location services on the member app to provide curated recommendations and exclusive offers for members on their travels.
Exclusive Access to Limited Editions and Collaborations: Use data analytics to identify members most likely to appreciate and engage with limited edition products and collaborations. By analyzing purchase history, brand affinity, and demographic information, Neiman Marcus can offer early access and exclusive privileges to members most likely to value these unique offerings, fostering a sense of exclusivity and prestige. This can include, but is not limited to, VIP sales events of high-end items that have not yet sold, early access to the Neiman Marcus Emerging Designer’s Showcase, special invites to New York Fashion Week, and more. Partner with fashion houses to offer masterclasses and workshops led by master couturiers. Club members can even participate in masterclasses with renowned designers, learning the art of couture craftsmanship, from hand-sewing techniques to fabric draping, and creating their own custom couture pieces under expert guidance.
VIC Data Flowchart by Lawson Burrows
THE DATA-DRIVEN APPROACH
A comprehensive data-driven approach is essential to effectively utilize data in the Neiman Marcus Members-Only Club initiative. Here’s how data can be leveraged at various stages of the initiative:
Data Collection
Customer Profiling: Collect and analyze demographic, psychographic, and behavioral data to create detailed customer profiles of club members. This includes information such as age, gender, income level, lifestyle preferences, purchase history, and engagement patterns.
Transactional Data: Capture transactional data from club members’ purchases, including product preferences, spending habits, frequency of purchases, and average order value (AOV).
Interaction Data: Track interactions with the Neiman Marcus brand across multiple touchpoints, including website visits, app usage, social media engagement, and attendance at exclusive events.
Predictive Analytics
Predictive Modeling: Use predictive analytics to forecast future behavior and identify trends among club members. This includes predicting purchasing patterns, identifying high-value segments, and anticipating churn risk.
Next-Best-Action Recommendations: Use machine learning algorithms to generate personalized recommendations for club members based on their past behavior and preferences. This could include product recommendations, event invitations, special offers, and loyalty rewards.
Personalization and Customization
Hyper-Personalized Experiences: Leverage data insights to deliver hyper-personalized experiences for club members across all touchpoints. This includes personalized communications, targeted marketing campaigns, curated product selections, and customized event invitations.
Dynamic Content and Messaging: Use dynamic content optimization techniques to tailor marketing messages, promotional offers, and product recommendations in real time based on individual preferences and engagement history.
Adaptive User Interfaces: Implement adaptive user interfaces that dynamically adjust based on user behavior and preferences, providing club members a seamless and personalized browsing experience.
Performance Measurement and Optimization
A/B Testing: Conduct A/B testing experiments to evaluate the effectiveness of different strategies, messaging variants, and user experiences. Use data insights to optimize campaigns, refine targeting criteria, and improve overall performance.
Continuous Improvement: Continuously analyze data and performance metrics to identify areas for improvement and optimization. Use iterative testing and experimentation to refine strategies, enhance customer experiences, and drive better outcomes over time.
Neiman Marcus x Quintessentially Offerings Mock Up by Lawson Burrows
Neiman Marcus x Quintessentially Mock Up by Lawson Burrows
PILLAR 3.0: Relationships with Luxury Brands
OBJECTIVES
In alignment with Neiman Marcus’s overarching strategy to solidify its position as the premier multi-brand luxury retailer, Pillar 3.0 focuses on nurturing and expanding relationships with luxury brand partners. The primary objective is to enhance the exclu- sivity and uniqueness of Neiman Marcus’ product offerings by increasing the number of exclusive partnerships by 25%. This will be achieved through strategic col- laborations that resonate with their discerning customer base and differentiate Neiman Marcus in a highly competitive luxury landscape. Additionally, Neiman Marcus will aim to leverage emerging technologies such as RFID to implement real-time data tracking in all of its stores. By providing brand partners with actionable insights into in-store performance, customer preferences, and competitive analyses, Neiman Marcus can anticipate a 15% increase in partner satisfaction scores. These objectives underscore their commitment to fostering mutually beneficial relationships with luxury brands while embracing a curated selection of data and technological advancements to drive innovation and elevate the Neiman Marcus brand.
THE AFFILIATE PROGRAM
As shown from the key insights, Neiman Marcus must incentivize the brands it carries to give them the best product offerings possible and foster an exclusive relationship. Additionally, they must be at the forefront of finding and incentivizing emerging brands to sell with them. The proposed affiliate program will blend data-driven brand analytics to provide brands with valuable customer insights, enabling them to understand consumer preferences and tailor offerings accordingly. Brands will be able to pay Neiman Marcus for insights on how they compare with other brands carried by the retailer, market trends, and more.
Of course, while brands are Neiman Marcus’ partners, they are also their competitors. The data shared through this platform will be specially curated to ensure Neiman Marcus maintains a competitive edge. Multi-brand retailer buyers operate in a system of trying to increase competition between brands. This program will further that strategy by empowering brands with some knowledge but always leaving them wanting more. The following data will be shared with brand partners participating in the program:
Brand-by-brand sales performance: Sharing aggregated sales data, such as units sold, revenue generated, and average transaction value, can help brands understand the performance of their products within Neiman Marcus stores. Brands can see how they are performing compared to competitors without seeing the actual brand names they are competing against.
Customer preferences: Providing insights into customer preferences and buying behaviors, such as popular sizes, colors, and styles, can enable brands to tailor their product offerings and marketing strategies to better resonate with Neiman Marcus customers.
Inventory insights: Sharing inventory data, such as stock levels and sell-through rates, can help brands optimize their supply chain management and production planning to meet demand effectively.
Market trends: Sharing market trends and consumer insights specific to the luxury retail industry can help brands stay informed about evolving consumer preferences and industry developments, allowing them to adapt their strategies accordingly.
Product engagement metrics: RFID tagging can capture data on how customers interact with specific products, such as how often items are picked up, tried on, or returned to shelves. Sharing this information with brands can inform product design and merchandising decisions.
Product performance across regions: RFID tagging can track sales and customer interactions with products at a regional level, allowing brands to assess regional preferences and trends. Sharing regional sales data can help brands tailor their product assortments and marketing efforts to specific geographic markets.
Return reasons and patterns: RFID tagging can capture data on product returns, including reasons for returns and patterns in return behavior. Sharing this information with brands can help them identify product quality issues, refine sizing or fit, and improve overall customer satisfaction.
Additionally, to retain a competitive edge and protect their customers’ privacy, Neiman Marcus will ensure that the following data remains proprietary: Customer relationship data: Neiman Marcus should retain ownership of detailed customer profiles and purchase histories to maintain its competitive advantage in personalized customer service and targeted marketing efforts. Operational insights: Internal operational data, such as store performance metrics, staffing levels, and promotional strategies, should be kept confidential to preserve Neiman Marcus’s strategic decision-making capabilities. Strategic initiatives: Plans for future product launches, marketing campaigns, and store expansions should be kept confidential to prevent competitors, including brand partners, from gaining insights into Neiman Marcus’s upcoming strategies and initiatives
Brand Partnership Data Flowchart by Lawson Burrows
THE NEIMAN MARCUS EMERGING DESIGNER SHOWCASE
While fostering existing relationships with designers is incredibly important, Neiman Marcus also has the opportunity to engage with emerging designers. Neiman Marcus prides itself on finding their customers' most uniquely curated items. Therefore, it is only fitting for them to look to the future by giving emerging designers the opportunity to showcase at their stores. This fosters a sense of retailer-brand loyalty from a very early stage, and if some designers find true success, they will always laud Neiman Marcus as the one who stood by them.
“The Neiman Marcus Emerging Designer Showcase” will discover, support, and promote new and emerging fashion talent by providing them with a platform to showcase their collections in select Neiman Marcus stores and online on a quarterly basis. Through this program, Neiman Marcus seeks to curate a diverse and innovative assortment of products while offering emerging designers exposure to a wider audience and access to valuable retail re- resources. Additionally, VIP customers will have early access to these showcases to ensure an air of exclusivity to the program. The program will be conducted through the following steps:
Call for Submissions: Neiman Marcus announces an open call for submissions from new and emerging designers interested in participating in the showcase. Designers are invited to submit their portfolios, including lookbooks, product samples, and brand profiles, for consideration by the Neiman Marcus team.
Selection Process: Neiman Marcus’s merchandising team reviews submissions and selects designers based on criteria such as creativity, craftsmanship, marketability, and alignment with Neiman Marcus’s brand values. Selected designers are notified and invited to participate in the Emerging Designer Showcase.
Mentorship and Support: Participating designers receive mentorship and support from Neiman Marcus’s team of industry experts, including guidance on product development, pricing strategies, merchandising, and marketing. Designers can access resources such as workshops, networking events, and one-on-one consultations to help them navigate the retail landscape and grow their businesses.
Showroom and Retail Placement: Neiman Marcus allocates dedicated showroom space in select stores for the showcase, where designers can display their collections to customers and receive feedback. Selected products from emerging designers are also featured on Neiman Marcus’s website, providing online exposure and accessibility to a broader customer base.
Marketing and Promotion: Neiman Marcus promotes the Emerging Designer Showcase through various marketing channels, including social media, email newsletters, and in-store signage, to generate awareness and drive traffic to participating designers’ collections. Designers are featured in Neiman Marcus’s marketing campaigns and editorial content, highlighting their stories, inspirations, and design philosophies to engage customers and build brand recognition. The selected emerging designers will have a secured spot at New York Fashion Week, fully paid for by Neiman Marcus. This will be mutually beneficial for the company’s publicity as well as the designer.
Sales Performance Evaluation: Neiman Marcus monitors the sales performance of products from emerging designers throughout the showcase period, analyzing metrics such as sell-through rates, customer feedback, and overall profitability. Based on sales performance and customer response, Neiman Marcus may extend opportunities for continued collaboration or partnership with designers whose collections resonate with its customers.
THE DATA-DRIVEN APPROACH
A data-driven approach is paramount to implement this affiliate program and ensure a lasting relationship between Neiman Marcus and its brands. Central to this initiative is the integration of RFID technology, which is strategically implemented to track product movement and customer interactions within stores, informing strategic decision-making and enhancing the retail experience. Complementing this technology is developing a sophisticated data analytics platform, which aggregates information from various sources, including RFID tags, point-of-sale systems, and online shopping behaviors. Using machine learning algorithms, this platform identifies trends and predicts customer preferences, furnishing brand partners with actionable insights to optimize their offerings and engagement strategies.
RFID Integration: Neiman Marcus is implementing RFID tags on all products as part of its affiliate program strategy, aiming to enhance tracking capabilities and understand customer interactions within stores. This technology enables monitoring of which items are being tried on most frequently and which are converting to sales, providing valuable insights into product performance and customer preferences.
Data Analytics Platform: As part of its data-driven approach, Neiman Marcus will develop a centralized data analytics platform to aggregate information from RFID tags, point-of-sale (POS) systems, and online shopping behaviors. Leveraging machine learning algorithms, this platform analyzes trends, predicts customer preferences, and generates actionable insights to benefit brand partners and optimize business strategies.
Customer Insight Reports: Neiman Marcus will regularly generate detailed reports for brands based on the collected data, offering comprehensive insights into behavior patterns, purchase histories, and preferences. These reports empower brands to understand their target audience better and tailor their products and marketing strategies accordingly.
Customer Connectivity: By leveraging customer connectivity through the Neiman Marcus WiFi network, the retailer can track the online behavior of shoppers within its stores. For instance, the system can track how many customers visit a brand’s website after viewing an item in-store, demonstrating the retailer’s ability to drive direct traffic to brand partners and showcasing the effectiveness of its affiliate program in driving online engagement and sales.
Neiman Marcus Brand Partnership Dashboard Mock Up by Lawson Burrows
Emerging Designer Showcase Created in MidJourney AI
PILLAR 4.0: Relationships with Future VICs
OBJECTIVES
Pillar 4.0 strategically focuses on forging strong relationships with future high-net-worth customers, aiming to cultivate a new generation of loyal Neiman Marcus shoppers. The initiative emphasizes understanding and engaging emerging market segments through innovative marketing, personalized interactions, and cutting-edge technology. By leveraging data-driven insights to tailor experiences and offerings, Neiman Marcus seeks to resonate deeply with prospective customers, integrating seamlessly into their digital and physical lives. This effort not only aims to enhance brand perception among younger and tech-savvy demographics but also to build a sustainable pipeline of clientele who view Neiman Marcus not just as a retailer, but as a pivotal part of their luxury lifestyle.
THE VIRTUAL RETAIL EXPERIENCE
The virtual retail experience designed by Neiman Marcus aims to leverage its strong curation and unique editorial perspective to create immersive online shopping environments that attract new users and highlight the brand’s unique selling proposition. These environments, tailored around exclusive collections and thematic edits, will seamlessly integrate into the Neiman Marcus website, ensuring a cohesive and controlled branding experience. Neiman Marcus can partner with Obsess, an innovative company that created virtual environments for Laura Mercier, Dior, and more to create this world. After its creation, it can be constantly updated by an in-house team.
For each exclusive collection, such as the Loewe experience, Neiman Marcus will design a bespoke virtual environment that reflects the aesthetic and ethos of the brand. This could involve a virtual walk-through of a curated gallery displaying the collection, complete with rich multimedia content—videos, music, and interactive elements—that tell the story behind each piece. Capitalizing off the in-store activation done in partnership with Loewe, Neiman Marcus will integrate an online replica so customers can experience the same magic online. This will act as another touchpoint for customers to understand the exclusive partnerships that Neiman Marcus is capable of.
Neiman Marcus incorporates editorial curation on their e-commerce site already, putting together product roundups to inspire visitors. They can take this curation of unique products one step further with thematic environments. For example, images showcase a “Spring Has Sprung” environment featuring a selection of spring clothing highlighting top trends of 2024. Customers can click “+” to expand product information, as shown to the right. These differentiated environments showcase Neiman Marcus’ distinctive taste, highlight existing and emerging designers, and provide a completely new and innovative way for customers to shop.
Neiman Marcus can enhance this experience further with the following offerings:
Early Access to New Releases: Virtual-environment shoppers could receive early access to new collections a day before they are available to the general public. This not only incentivizes the use of the virtual shopping experience but also rewards customers with a sense of exclusivity and encourages them to visit the store in person.
Loyalty Points Boost: Users could earn enhanced loyalty points for purchases made within the virtual environment. For example, double points for items bought through the interactive “Loewe Experience” could encourage more spending and deepen customer engagement.
Interactive Contests and Giveaways: Engage customers by hosting interactive contests or giveaways within these environments. For example, finding hidden items or solving puzzles in the virtual world could entice customers to win exclusive events, such as a members-only fashion show or free style consultation, encouraging aspirational shopping with the brand.
Virtual Stylist Consultations: Offer the services of a virtual stylist who can provide live feedback and suggestions as customers explore different environments. This personalized service could also include a follow-up email with recommended items based on the customer’s interests shown during the interaction.
Neiman Marcus Virtual Store Trend Edit Mock Up by Lawson Burrows, Created in MidJourney
3D SCANS FOR PERSONALIZATION & SOCIALIZATION
The in-store body scan experience at Neiman Marcus revolutionizes the traditional shopping journey by offering customers a personalized and immersive way to explore and try on clothing. Upon entering designated booths equipped with state-of-the-art LiDAR 3D body scanning technology created by Fit:Match, an innovative technology brand, customers undergo a quick and non-invasive scan that precisely captures their body measurements. These measurements are then used to create a digital profile that is accessible both on the Neiman Marcus website and the sales associate platform. Customers can choose to visualize clothes on their 3D body scan, either as a customizable avatar reflecting their unique body shape or as a sleek, glossy model akin to a mannequin. Over time, as the implementation progresses, customers can seamlessly transition these avatars into the virtual shopping world for a fully integrated shopping experience. Key features of this service include PersonalizedSizeRecommendations: Utilizing AI algorithms, customers receive personalized size recommendations based on their body measurements, ensuring a perfect fit for every garment. The image to the right shows what this might look like on the Neiman Marcus website.
Customizable Avatars: Customers can customize their avatars with features such as hairstyle, skin tone, and facial features, creating a digital representation that closely resembles them.
Social Interaction: The platform fosters social interaction by allowing users to interact with their avatars, share wishlists with friends, and even receive feedback and recommendations from their social network.
Enhanced Shopping Experience: By visualizing clothes on their 3D body scan, customers better understand how garments will fit and look onthem, reducing the need for returns and exchanges.
Improved Loyalty and Engagement: The personalized and interactive nature of the in-store body scan experience strengthens customer loyalty and engagement with the Neiman Marcus brand, fostering long-term relationships.
Seamless Integration: The integration of the body scan profiles across online and offline channels ensures a seamless shopping experience, allowing customers to access their digital profile and personalized recommendations anytime, anywhere.
Neiman Marcus 3D Scan Mock Up by Lawson Burrows, Created in MidJourney
THIRD SPACE MARKETING
Marketing to the future customer in third spaces involves leveraging AI algorithms and strategic event sponsorship to capture the attention of the younger, ultra-wealthy demographic in their preferred environments. This initiative requires a nuanced un- derstanding of their interests, behaviors, and preferred communication channels to effectively engage with them on their terms. Potential event sponsorships include:
New York Fashion Week: A partnership between Neiman Marcus and New York Fash- ion Week for the Emerging Designer Showcase offers a powerful platform to connect with future wealthy customers, engage existing VICs, and increase brand visibility in the high-fashion community. By aligning with one of the most prestigious events in the fashion industry, Neiman Marcus solidifies its position as a trendsetter and taste- maker, appealing to affluent individuals who value style and exclusivity. Through ex- periential runway shows highlighting the winner of the Emerging Designer Showcase, exclusive previews, and VIP experiences, this partnership provides unparalleled ac- cess to the latest designer collections and fashion trends, fostering a sense of aspira- tion and sophistication among Neiman Marcus’ target audience. provides a visualiza- tion of a Neiman Marcus runway show in support of their chosen emerging designer.
Desert X: A partnership between Neiman Marcus and an artist at Desert X presents a unique opportunity to engage with future wealthy customers through the lens of con- temporary art and culture. By collaborating with renowned artists featured at Desert X, Neiman Marcus can position itself as a patron of the arts and a curator of luxu- ry experiences, appealing to affluent individuals who value creativity and innovation. Through exclusive events, immersive installations, and art-focused activations, this partnership fosters a sense of cultural relevance and exclusivity, further enhancing Neiman Marcus’ brand image and connection with the next generation of luxury consumers.
TARGET MARKET
The target market for these initiatives is the Lifelong Luxuriate. These custom- ers prefer to be at the forefront of cultural initiatives. Therefore, they attend a mix of events that cater to affluent individuals that enjoy the finer things in life, such as art, technological innovations, fine food and beverages, and exclusive events. The events listed above will target different segments of this market over a strategic time- line to ensure that Neiman Marcus maintains a mental space in the future VIC’s mind.
DATA-DRIVEN APPROACH
Pillar 4.0 of Neiman Marcus’s strategy focuses on leveraging a data-driven approach to enhance relationships with future customers. This involves utilizing advanced data ana- lytics, machine learning algorithms, and artificial intelligence (AI) to personalize market- ing efforts, optimize online experiences, and target potential high-net-worth individuals effectively. The data-driven approach for Pillar 4.0 encompasses several key components:
Customer Segmentation: Utilizing data analytics to segment potential customers based on demographic information, purchasing behavior, and online interactions. By identifying high-net-worth individuals and understanding their preferences, Neiman Marcus can tailor marketing campaigns and communication strategies to resonate with their interests.
Predictive Analytics: Leveraging predictive analytics models to forecast customer behavior and anticipate future trends in luxury retail. By analyzing historical dataand identifying patterns, Neiman Marcus can make data-driven decisions aboutproduct offerings, marketing channels, and promotional strategies to attract and re- tain future customers.
Personalized Marketing: Implementing personalized marketing initiatives based on customer insights and preferences. This includes targeted advertising campaigns,customized email newsletters, and personalized recommendations on the NeimanMarcus website. By delivering relevant and timely content to potential customers, Neiman Marcus can enhance engagement and drive conversion rates.
Omnichannel Integration: Integrating data across various touchpoints, including online channels, social media platforms, and physical stores, to create a seamless omnichannel experience for customers. By connecting data from different sources, Neiman Marcus can gain a holistic view of customer interactions and deliver consistent messaging and experiences across all channels.
AI-Powered Advertising: Harnessing the power of AI algorithms to optimize advertising campaigns and maximize ROI. This includes using machine learning techniques to analyze customer behavior, identify patterns, and automatically adjust advertising strategies in real-time to reach potential high-net-worth individuals effectively.
Event Sponsorship and Targeted Marketing: Partnering with high-profile events and leveraging targeted marketing tactics to reach affluent audiences. By sponsoring exclusive events attended by the ultra-wealthy elite, such as art exhibitions, music festivals, and luxury galas, Neiman Marcus can position itself as a desirable brand among its target demographic and foster connections with future customers.
Neiman Marcus DesertX Collaboration Mock Up by Lawson Burrows, Created in MidJourney
Neiman Marcus Virtual Store Brand Collaboration with Loewe Mock Up by Lawson Burrows, Created in MidJourney