In brief:

• Customer data is key to offering personalized, white-glove experiences.
• Privacy regulations are making the way brands handle data more sensitive than ever.
• Louis Vuitton believes having transparency about what you’re doing with that data is key.
• Transparency starts with governance and requires you to build partnerships across the business.
• Trust is the most essential element in the luxury space.

Table of contents:

Anyone who has found themselves in the enviable position of buying a luxury handbag can probably picture the scene. You’re sat down in a private room with the sales assistant, a glass of fizz and some high-end chocs. The décor is opulent, the air pregnant with wealth. And in front of you on the desk is a form to fill out while completing the purchase.

The tone is that of joining an exclusive club. And the cost of entry – beyond the reassuringly expensive ticket price, of course – is that you share details such as your address, birthday, phone number and even shopping preferences with the brand so that they tailor your experience accordingly.

Welcome to the world of white glove shopping – where personalization is everything, and customer data is king.

“For us, data is at the heart of the client experience,”
Davin Darnt, Chief Information Security Officer – Louis Vuitton

When speaking at GDS Group’s recent Security North America summit, Davin Darnt, Chief Information Security Officer over at Louis Vuitton explained “How we customize for each client, how we build high-end experiences that our clients love and want to come back for, how we make sure that clients have a rewarding experience throughout their lifecycle with ownership of our products.”

Adding the personal touch

Offering that personal touch is critical for Louis Vuitton, whose whole identity is defined by personalization. From its iconic leather goods with customizable designs to its hot-stamp monogramming service, to its engraved jewelry, the brand has a long history of putting the ‘personal’ into personal style. Product recommendations and styling advice are an integral part of its luxury offerings.

And that service extends to the experience too – not least when it comes to how the brand handles the sensitive data that those customers provide.

“We cater to the very top tier,” says Darnt. “We have heads of states, we have presidents, we have celebrities. We’re dealing with people who have real security concerns – about their personal safety, about the safety of their families. And as such we have to take our approach to how we handle that data to the next level; we have to offer them an additional tier of support and protection over their data.”

Not least because those customers increasingly demand that level of service. “It’s part of the unspoken contract between Louis Vuitton and our customers,” he says. “For them to work with us, they also expect – and demand – that upper level of support.”

A changing privacy landscape

Indeed, those expectations are rising across the board, driven in large part by the adoption of regulations such as GDPR and the California Consumer Privacy Act – both of which place more power in the hands of consumers regarding the use of their personal data. And with further regulations in the pipeline, navigating a complex and fast-moving compliance landscape is becoming ever more important.

“The lack of coherence around privacy and regulatory frameworks presents a ton of difficulty,” suggests Darnt.

“How we manage all of these different regulations across different geographies, often with conflicting requirements, and combine them into a coherent strategy is critical.”
Davin Darnt, Chief Information Security Officer – Louis Vuitton

For Darnt and his team, the foundation for that is being upfront about why data is so important. “We try to be very transparent in our relationship with customers about what data we accumulate on them and how we wish to use that,” he says. “Data needs will change, functionality and technology changes, but making sure you are clear with the client about what you’re going to do and why it can enhance your relationship is key.”

Only with that fundamental culture of data transparency in place can you then start to build out your data strategy. And for Louis Vuitton, that starts with governance. “For us it was a discussion with our key stakeholders and partners around what our risks are when it comes to data. Do we understand what we’re going to get out of leveraging the data? What are we trying to achieve? And what are the risks as well as the rewards of doing so? Making sure that we have a clear baseline where all our stakeholders understand what that looks like is key.”

The value of partnership

Darnt also recommends building strong partnerships across the business – starting with legal. “My legal counsel has been the greatest partner in this mission to co-create a responsible privacy program that our customers love,” he says. “In addition, we want to be a true business partner – and that means getting other business teams and users on board.”

For Darnt, that means helping them understand where the guardrails are and how to operate in a complex landscape. “My goal is not necessarily to say no, but just to give the business a responsible way of operating moving forwards,” he explains. “And we do that by continually engaging with our e-commerce teams, our digital teams, our marketing teams, just so they understand the landscape that’s around them. We have to make sure that our clients are at the center of every discussion.”

The key is to understand what the lifecycle of each piece of data looks like within the organization. “Where does it originate? Where does it flow to and through? Who has access to it?” says Darnt. “And if you’re then able to marry that with an understanding of what you propose to do with that data, then you can start to categorize it, build processes around it, and build frameworks for protecting it.”

Relationships built on trust

The name Louis Vuitton evokes a certain craftsmanship. But more than that, those brown handbags are a status symbol. And in the brand’s eyes, purchasing one should be all about the experience, complete with a white-glove service that is hard to replicate.

Of course, getting that right requires a close understanding of the customer and their unique needs and behaviors. Gaining a high level of customer insight is arguably more critical in the luxury space than in any other sector. But that also places a higher degree of responsibility on those brands to operate to the highest possible standards when it comes to secure and ethical data use.

“All data is sensitive,” concludes Darnt. “But for us and our very particular client base, it’s even more sensitive because our brand is centered on trust. For us, our reputation is everything and we don’t take that lightly. We take it extremely seriously. Trust is central to everything we do.”

Conclusion

Customer data plays a crucial role in shaping personalized experiences within the luxury industry. However, navigating privacy restrictions adds complexity to this process. Louis Vuitton takes a proactive approach by fostering governance collaborations that prioritize transparency. It recognizes the utmost importance of complying with legislation such as GDPR and the California Consumer Privacy Act. Moreover, Louis Vuitton actively engages in open communication with customers, emphasizing the value that data brings in enhancing their experiences.

To ensure accountability, Louis Vuitton forms strategic partnerships with key stakeholders, including legal advisors. This collaborative effort ensures that their privacy program adheres to responsible practices. By engaging business teams, Louis Vuitton empowers them to navigate the intricate landscape of regulations in a responsible manner. Understanding the lifecycle of data is crucial, enabling Louis Vuitton to appropriately classify and safeguard it. By upholding principles of openness, governance, and ethical data practices, Louis Vuitton ensures that its operations align with the expectations of its valued clients, delivering extraordinary experiences while fostering and preserving trust.

Our recent North America security digital summit that Davin spoke at, ended with an impressive average content attendance of 94% and a meeting completion rate of 117% against target.

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