Category: Customer Experience

Brand, Customer Experience, Fashion, Luxury Brand, Luxury Talent

Luxury Talent Goes Big

by Victoria MacdonaldLeave a Comment on Luxury Talent Goes Big

Big3This Harvard Business Review post, “Luxury’s Talent Factories,” discusses how large luxury conglomerates such as LVMH, Kering and Richemont actually drive talent performance. Most management research would argue the opposite. It’s generally accepted that companies can increase their financial returns by focusing on core lines of business. Contrary to this evidence, the article states: “Diversification generally does not add value unless there are significant cost savings and operational synergies across units—which isn’t necessarily the case with all luxury groups.”

Diversification generally does not add value unless there are significant cost savings and operational synergies across units—which isn’t necessarily the case with all luxury groups.

According to the article, here are some of the reasons the “Big 3” are able to use their size to their business advantage in developing luxury talent:

Mobility – Diversification of internal brands means that employees who move from subsidiary to subsidiary bring a core set of brand values and skills. They are also better able to build their personal networks across multiple internal brands. The advantage to the enterprise is that they’re able to leverage talent when and where they need it.

Best practices – The organization can identify and transfer best practices across products, and gain the benefit of new perspectives at the same time. In one case, CRM talent from a fashion group was brought in to help build a CRM function for a watch brand.

International Experience – Cross-cultural exposure inspires creativity and provides exposure to a larger pool of manufacturers and suppliers.

Understanding the Global Customer – As technology and social media create a growing international marketplace, it’s imperative that brands understand how luxury customer expectations vary from country to country.

Although Europeans can explain to customers what luxury means, they also must have experience in foreign markets to understand which aspects of luxury the customers there actually care about. For example, in America consumers will buy watches for their functionality or performance, whereas in Asia it’s more about the prestige of the brand.

The three large luxury groups are able to leverage these advantages for the individual as well as for the enterprise. It only works, however, when the group is able to keep its brands relevant and continuously invests in developing premium talent.

Customer Experience, Customer Service, Luxury Brand, Luxury Sales Training

Please don’t be rude!

by Victoria Macdonald3 Comments on Please don’t be rude!

rudeMilton Pedraza, CEO of Luxury Institute recently confirmed, “Luxury brands lose half of their top customers every year. The biggest reason why a consumer won’t come back is not the product—it’s a rude or inattentive salesperson” (The new face of luxury: breaking down the myths and stereotypes of the luxury shopper). On the surface this statement seems to contradict the finding of a recent study titled, Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers’ Desire for the Brand (October 2014 Journal of Consumer Research). The study (co-authored by Dr. Darren Dahl, a marketing professor at the Sauder School of Business and Prof. Morgan Ward of the Cox School of Business) found customers who receive poor treatment from sales associates in a luxury retail environment are more likely to make a purchase.

Luxury brands lose half of their top customers every year. The biggest reason why a consumer won’t come back is not the product—it’s a rude or inattentive salesperson

Continue reading “Please don’t be rude!” →

Brand, Customer Complaints, Customer Experience, Customer Service, Luxury Brand

Handling Customer Complaints with Grace

by Victoria Macdonald3 Comments on Handling Customer Complaints with Grace
complaint
The British Museum in London holds one of the earliest recorded customer complaints inscribed nearly 4,000 years ago on a Babylonian clay tablet dated circa 1750 BC.

When customers have a higher expectation of service, as in the luxury sector, the potential for customer dissatisfaction increases. I may not expect a hand-written thank-you note after purchasing a fashion ring at Macy’s, but I’d be surprised not to receive one if I bought a yellow-diamond pendant at Tiffany & Co. Because the service expectations of the luxury customer are so high, complaints need to be handled with extra care.

The goal, of course, is to prevent customer complaints altogether by listening attentively to the customer and ensuring seamless service. But things can and do go wrong, even in a luxury environment. When they do, it’s important to remember to act with grace. The dictionary defines ‘grace’ as a polite or pleasant way of behaving. It’s important to note as well, that the word ‘grace’ comes from the Latin gratia—to give thanks. Many people say grace before a meal in order to express gratitude. In the same way, a complaint can be seen as a gift. It presents an opportunity to exceed customer expectations and create loyalty. When we handle the complaint with grace, we are thankful for this gift.

When a customer is dissatisfied with your product or service, here are six steps you can follow: Continue reading “Handling Customer Complaints with Grace” →

Brand, Customer Experience, Customer Service, Fashion, Helping Customers Envision, Luxury Brand, Luxury Sales Training

Once Upon a Time: Telling Luxury’s Story

by Victoria Macdonald1 Comment on Once Upon a Time: Telling Luxury’s Story

story“Only 19 percent of consumers believe sales associates have relevant information,” says Adam Silverman, principal analyst at Forrester Research, San Francisco. “That’s very shocking and that’s clearly an indicator that the sales associate role needs to change.”

One way in which you can change that role is to perfect the art of telling luxury’s story. A good story engages and excites the listener. Stories create emotions and those emotions, in turn, drive desire. We buy luxury items not because we need them, but because we desire them.

Continue reading “Once Upon a Time: Telling Luxury’s Story” →

Brand, Customer Experience, Customer Service, Fashion, Luxury Brand, Luxury Sales Training

The Rarity of Platinum Service

by Victoria Macdonald3 Comments on The Rarity of Platinum Service

platinumPlatinum is more expensive than gold because it is rarer. Similarly, a platinum level of service is more precious than the “gold standard” of service offered by most sales professionals. The Golden Rule states: “Treat other people as we would wish to be treated ourselves.” It is the rare sales professional, however, who knows and lives by the Platinum Rule: “Treat other people as they would wish to be treated.” The difference comes down to a small, but meaningful, change in perspective.

Continue reading “The Rarity of Platinum Service” →

Brand, Customer Experience, Luxury Brand

Three Principles of Luxury

by Victoria Macdonald1 Comment on Three Principles of Luxury

3GoldBarsLet me start by apologizing to anyone who is expecting a definitive list of principles that define luxury. This post may leave you with more questions than answers. I ended the year 2014 with a few posts devoted to the very question of what luxury is. It seems I’m still on the same track now that the new year has arrived.

I just finished reading a recent LinkedIn post by Alan Crean, a self-described Subject Matter Expert in Professional Services Automation. The post is titled “Luxury Brands as a Professional Services Market.” It begins with a succinct summation of the luxury question I’ve been pondering. According to Crean:

There is no official definition of what constitutes a ‘luxury good.’

Continue reading “Three Principles of Luxury” →

Customer Experience, Customer Service, Fine Dining, Luxury Dining

It’s All About that Service II: Fine Dining Edition

by Victoria MacdonaldLeave a Comment on It’s All About that Service II: Fine Dining Edition

diningThe day after I finished writing my last post “It’s All About that Service” I caught chefs Daniel Boulud and Eric Ripert (Le Bernardin) being interviewed on CNBC. Though both chefs were in the studio to talk about their new cookbooks, the conversation was more focused on why fine dining continues to thrive as a business while other luxury sectors are in a decline. “Right now, people want an experience.” says Eric Ripert  This sentiment echoes what I wrote in the previous post—that there is an oncoming shift from having “things” to having “experiences.” Chef Ripert goes so far as to suggest the success of fine dining augurs better days ahead:

When fine dining does well it means it’s going to be good down the line.

Continue reading “It’s All About that Service II: Fine Dining Edition” →

Customer Experience, Customer Service, Luxury Sales Training

Should We Try to Exceed Customer Expectations?

by Victoria MacdonaldLeave a Comment on Should We Try to Exceed Customer Expectations?

Happy CustomerYesterday someone told me there’s no point in trying to exceed customer expectations, because once you do, the bar is raised and the exception becomes the norm. It creates a never ending spiral upward. All I can say, is “poppycock” (yes, people used to say “poppycock,” probably the same folks who used to say “balderdash”). Anyway, you get my point. Continue reading “Should We Try to Exceed Customer Expectations?” →

Brand, Customer Experience, Customer Service, Luxury Sales Training

Luxury Institute’s Seven Trends Shaping Luxury in 2015

by Victoria MacdonaldLeave a Comment on Luxury Institute’s Seven Trends Shaping Luxury in 2015

Following is a link to the seven trLuxuryInstitute_Logo_taglnends the Luxury Institute forecasts for 2015:

Click here to view the Luxury Institute’s Seven Trends Shaping Luxury in 2015.

After reading through the list, some of my key takeaways are:

  • There is over saturation in the luxury sector. Brands will need to do an even better job of differentiating their products and services. Customer service, relationship building and social outreach are critical.
  • Leaders must strive to inspire, empower, measure and reinforce best practices.
  • It’s all about developing relationships, particularly across channels. (See my previous post What the Luxury Sales Associate Needs to Know in an Omni-Channel World).

Also, and very importantly, look for luxury brands to empower store sales associates who have multi-channel clients to reach out and build human relationships after the client purchases in any channel.