Over the past several years, the interest in and popularity of the use of the LINE platform for business purposes has increased continuously. Even high-end brands are no exception. This category traditionally created customer experiences exclusively on-site. Nowadays, however, there has been a significant push into the online marketplace. This shift is evident in the annually increasing number of global luxury brand LINE Official Accounts (OAs) in Thailand. Recently, LINE Thailand organised ‘LUXURY Day 2023’, an exclusive seminar tailored to the luxury goods business sector. The event brought together experts in marketing and luxury brands to discuss and provide insights into using the digital tools available on LINE. It also highlighted significant trends in building brand devotion among digital-era customers.
Insights into the current use of LINE by luxury brands
Supawadee Juengjaroensukying, Business Consultant – Luxury Industry, LINE Thailand, stated that LINE is a leading digital platform currently reaching over 54 million people in Thailand. It appeals to people of all age groups, especially the working-age population with purchasing power in the luxury goods market. According to the latest figures, there has been a 20% year on year increase in the number of luxury brand LINE OAs. Additionally, the number of users following these luxury brand OAs has risen by more than 40%. Notably, over 70% of these users are women, primarily in the 30-39 age group, followed by those aged 50 and over and the 40-49 age group.
Notably, luxury brands increased their active engagement with LINE Official Accounts (OAs) in 2023. There has been a 155% increase in message broadcasting through LINE OAs and an 11-fold increase in communications via the API. Furthermore, there has been a focus on building brand recognition and identity through LINE Sponsored Stickers, particularly with big stickers and animated stickers, which saw a 2-fold growth this year. It is projected that the investment value in the LINE platform from luxury brands will rise by over 41% by the end of 2023. Nonetheless, the use of LINE by luxury brands in Thailand is still limited, compared to other business sectors, indicating significant potential for luxury brands to use LINE more effectively. This is especially true when leveraging LINE’s unique tools and features, such as customer data collection and the implementation of personalisation strategies.
New era customers accessed through personalisation strategies
Kunchalee Sumleerat, Founder, DigiNative, a modern marketer and communicator, highlighted the evolution of brand building. The focus has shifted from product-centricity to advertising-driven branding. Presently, it is more about creating diverse content. This trend is, however, also evolving as consumers, especially the younger generation, are seeking more choice and control over their media consumption, engaging only with that content which is relevant to them or presented in an on-demand format. Therefore, personalised communication is becoming a key trend for luxury brands. To implement personalisation strategies effectively, brands need to gather comprehensive and clear data, to maximise their understanding of each customer or consumer. LINE distinguishes itself as a platform that facilitates comprehensive personalised marketing for brands.
LINE as a platform for luxury brands in personalised marketing
The LINE platform is not just a medium for communication. It also serves as a sales channel, a service provider and a means by which to cater to various customer needs. Additionally, it is a crucial channel through which brands are able to collect diverse customer data for analysis. This deeper understanding of and connection with customers is facilitated through various tools. These include the LINE OA as the primary communication and marketing tool on LINE, LINE Ads for advertising, to broaden brand awareness and increase OA friends, and tools, like MyCustomer and Business Manager, for data storage and management. These help brands to categorise, segment and analyze collected data, enabling them to design targeted and effective marketing strategies. Moreover, solutions through the LINE API, developed by LINE and other developers, offer brands the option of seamlessly enhancing the user experience on LINE. This includes implementing personalised CRM solutions for customers, further strengthening their personalised marketing capabilities. Kanchalee also outlined two key factors for success in using LINE OAs by luxury brands:
(1) Creating a utility that meets customer expectations: Brands should first gather customer data, to differentiate customer groups accurately and clearly. For example, new customers, potential customers and existing customers. Each group should receive tailored communications and services on LINE OA, facilitated by the LINE Messaging API. For instance, for new and general customers, the focus should be on brand building communications, potential customers should be presented with product selling points, which spur purchase interest, and existing customers should receive product updates, after-sales services and various notifications about purchased products or received services. Using the LINE Messaging API allows brands to communicate, showcase products and offer useful services that meet customer expectations on LINE OA.
(2) Creating personalized communication at an individual level. This comprises 5 crucial steps:
- Planning Data: Brands should clearly define their objectives, to determine the type of data needed, such as demographics, interests, etc.
- Collecting Data: Brands should design appropriate data collection methods for each customer type, to encourage their interest and willingness to provide information, such as through Mission Stickers.
- Segmenting Data: Using various tools to help marketers acquire data that meets their specific objectives, such as MyCustomer.
- Designing Personalised Communications: Tailoring the format and content of communications to meet each customer’s expectations, using tools like LINE API, MyCustomer and LINE Official Notification.
- Optimising Communications: Integrating data obtained from LINE with existing brand databases, for efficient analysis and future product and service design.
In the current, continually evolving business environment, brands must adapt quickly, especially luxury brands that rely on creating exceptional customer experiences. LINE emerges as a digital platform and set of tools which fully meet the needs for both technology and data. They serve as a vital channel for brands in the online world, working in tandem with offline channels to craft complete luxury customer experiences.
Luxury businesses interested in making the most of what the LINE platform has to offer are welcome to contact [email protected] for more information.
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