Last week I was invited to hear Dr. Heidi Grant Halvorson talk about her new book No One Understands You and What To Do About It. Dr. Grant Halvorson is a social psychologist who writes about the science of motivation. In this book, she explores intentions versus perceptions. For anyone in a sales or customer service position this is recommended reading. If you’ve ever felt that you just weren’t getting through to someone or you weren’t getting your message across the way you intended to, then Dr. Grant Halvorson has some suggestions for you.
There is so much in this book that can be applied to everyday social interactions, business meetings, and customer conversations. But there is one area in particular that I’d like to focus on – and that is developing trust. Anyone in sales will tell you that trust is at the core of the sales process. The customer must trust you before they’ll buy whatever you’re trying to sell.
My husband and I just returned from an extraordinary vacation in Bali. It had been my lifelong dream to visit this enchanting island and experience its unique spiritual and artistic culture. If this were a travel blog, I’d share more about the activities, food and scenic wonders we enjoyed. But this is a blog devoted to luxury customer service. During my stay, I discovered the level of care and attention to detail the Balinese people delivered at even the most humble establishment, met or exceeded my definition of luxury service – and I wondered why.
We were fortunate to have a knowledgeable and friendly driver (he went by the nickname “Smiley”) who patiently answered our questions about the island, its people and its culture. When we inquired about the level of crime in Bali, he responded that it’s low since most Balinese are Hindu and believe in the concept of karma and the idea of rebirth. (Nearly 84% of Bali’s population practice Hinduism). They don’t want bad actions determining their future destiny.
I started to think about how karma relates to serving others and wanted to capture those thoughts for this blog. I had a very simple understanding of the concept of karma (and I still do). For purposes of full disclosure, I did some minimal research on the concept of karma. Wikipedia states that karma is complex and difficult to define. At this point, I don’t presume to have even a beginner’s understanding of the topic. The best I can offer you is my own interpretation of the word and how I think it relates to service. In doing so, I sincerely hope I do not inadvertently misinform or offend anyone. My sole intention is to share some thoughts on customer service.
Karma is a Sanskrit word meaning action, work or deed. It also reflects how your actions can influence the future. Your actions have consequences. Good actions will result in good consequences, and of course, bad actions bring about bad consequences. Karma is also closely tied with the idea of rebirth, meaning your actions will follow you not only through this life, but also into the next.
Philosophically this means your successes and failures are mostly products of your actions. If you think and act positively, you will succeed. If you think and act negatively, you will bring negativity upon yourself. Now let’s look at this from a customer service perspective. Karma says every action has an equal reaction either immediately or at some point in the future. How can an act produce an effect at a future time far removed from the act’s performance? Perhaps it’s as simple as thinking about cause and effect. Think about how easy it is to ruin a customer’s day. You need only greet someone with a scowl, make them wait, be abrupt, complain about your work, and not thank them for their business. The impact of your rude behavior may stay with them long after they’ve left your store. And the negative interaction certainly won’t make you feel any better.
One article I read said that karma is like a seed. This, of course, parallels the old adage “you reap what you sow.” What does that have to do with customer service? Well, even if you don’t consider the concept of rebirth, what if you thought about how your every action could condition your future? Would it change how you greet a new customer after you’ve had a long and tiring day? Would it affect the time and attention you pay somebody who simply wants to return a purchase? Would it encourage you try to put a smile on the face of someone who’s complaining? Consider the consequences your actions have not only on your customers, but on you.
If this post is a bit of a departure in tone from those I usually write, I’m not surprised. While in Bali I had the luxury of taking time to relax, breathe and contemplate. I was deeply affected by the magic of Bali. I hope I was able to share a bit of that magic with you and to inspire you to think about the karmic effects of your customer interactions.
On another note:
I celebrated a birthday while in Bali and as a present my husband took me to the John Hardy showroom and factory – and bought me a lovely bangle to take home! We also scheduled time to visit the amazing Green School and Green Village founded by John Hardy and his wife, and to tour the remarkable homes designed by his daughter, the architect Elora Hardy. I would definitely recommend these destinations to anyone visiting Bali.
On a recent flight back from Boston, I re-watched one of my favorite TED Talks. Simon Sinek’s How Great Leaders Inspire Action. It’s a great video in which Sinek describes why great companies inspire loyal employees. My thoughts turned to luxury selling and I thought about how great associates can inspire loyal customers.
In the video, Sinek talks about three different types of companies. Those that know what they do (the majority), some that know how they do it, and the few that know why they do what they do. Sinek refers to this as the Golden Circle. Every organization knows what it does – it’s the products or services they sell. Some organizations know how they do it. This usually translates into what differentiates them from other companies that do what they do – in other words, their value proposition. But very few companies know, or can articulate, why they do what they do. The Why isn’t about making money. The Why is about contribution and impact. The Why is about inspiration.
Sinek then talks about how the human brain corresponds to the Golden Circle. The neocortex – our “outside” brain – corresponds to the What. It’s the part of the brain responsible for rational and analytical thought. The middle sections represent the limbic brain that controls our feelings, emotions, human behavior and decision making.
Timetrade’s recent whitepaper, Personalization in Retail: A Reality Check says that only 26 percent of consumers feel they’re receiving a customized +shopping experience even though 69 percent of retailers believe their delivering a personalized interaction.(Timetrade’s website says they help companies deliver on their brand promise of a truly personalized customer experience.) Since 90% of retail transactions take place in brick and mortar stores, it’s shocking to learn that consumers rank stores as the second worst channel for customer experience.
India is an alluring country that shimmers with vibrant colors. For centuries it has offered magnificent buildings, temples and landscapes. The past opulence of the maharajas and the splendor they created now flows seamlessly into today’s booming luxury industry.
The Indian luxury market
I recently returned from the largest international conference for professionals in the field of learning and development sponsored by the Association for Talent Development (ATD). Nearly 11,000 attendees from over 80 countries attended 300 concurrent sessions in Denver, Colorado. The exhibition hall boasted more than 400 leading training services providers. As I wandered the aisles of learning content vendors, one word repeatedly caught my attention—curated.
‘Curate’ is not a new word. Its root goes back to the Latin curare, which means to care. The first known use of the word ‘curator’ as someone who is in charge of a museum or art gallery collection dates back to 1561. The word has evolved over the centuries and today Dictionary.com defines ‘curate’ as “to pull together, sift through, and select for presentation, as music or website content.”
Content curation is so omnipresent in consumers’ lives today that we barely notice it. Your shows on Netflix are curated based on your viewing history, Spotify tailors music selections specifically to your taste, most news services feed you content according to your specified preferences, and shopping services such as StitchFix will curate a personal wardrobe for you. Curation as a marketing and sales technique gained ground in 2011 with Steven Rosenbaum’s book Creation Nation.
I love the idea of turning luxury sales associates into luxury curators for two reasons. The first reason is the root of the word – to care. Care needs to inform everything a luxury associate does: caring about the customer, caring about the customer’s needs, caring about the luxury experience, and caring about the presentation. The second reason is the idea that the curated experience is a personalized experience for the luxury consumer. Today’s luxury customers seek experiences that are customized to their personal preferences, that are exceptional, and that they can share and remember. Recently, Saks Fifth Avenue launched a service through which associates are available 24/7 to curate personalized virtual boutiques for individual customers. But curation isn’t just about technology. As Milton Pedraza, CEO of the Luxury Institute says, “Technology today presents an immense opportunity for targeting potential customers, but it is ultimately the intimate humanistic relationships that sales professionals form with customers that keep them coming back.” It is the luxury sales associate who holds the key to building those connections.
What do luxury sales associates need to do in order to become luxury curators? To find some answers I searched “How to curate?” and found some great tips on Coschedule.com. Coschedule is a marketing calendaring service whose tips are specific to how to curate online content. I’ve borrowed the heading for each tip and turned each into a suggestion for sales associates who are looking to create a curated luxury experience for their clients:
- Provide your take on things – Add your own personal touch. To paraphrase Coschedule, provide every piece with context. You should always surround the piece with your views, knowledge, and insight. Share a story about your brand’s heritage or an intimate detail about the craftsmanship.
- Don’t make it all about you – Remember your customers have different preferences than you. Research and understand the lifestyles of your luxury customers. Read luxury travel and style magazines, subscribe to luxury blogs, and know your competition.
- Answer your audience’s common questions – Be knowledgeable about your brand, your services, distinguishing product characteristics, shipping and return policies, corporate responsibility programs, etc. Common questions may also include concierge-type recommendations on where to eat, shop or find local attractions.
- Be very, very selective – Rather than rattling off a list of features, share two or three benefits (a personalized statement of value) you believe best meet your customer’s needs. To turn a feature into a benefit, think of the customer asking “Why is this important to this me?”
- Take advantage of in-house expertise – Observe your co-workers. How are they interacting with customers? What can you learn from them? Be open to asking for feedback. Ask your manager to observe you and provide suggestions on how you can improve. If you don’t know the answer to a question, make sure you find someone who does.
- Don’t forget your CTA’s (Calls to Action) – Your relationship to the customer doesn’t end when he or she walks out the door. Think about how you can proactively reach out to customers to grow the relationship by building upon additional needs. A hand-written thank you note is always welcome. You may want to invite them to an upcoming event, alert them to a new item, or just check in to see how they’re enjoying their purchase.
If you view your role as a curator rather than a sales person, you will provide the level of care and personalization necessary to turn every customer interaction into an extraordinary luxury experience.
This month’s post is written by guest blogger Gretchen Shaw. Gretchen is an author, blogger and entrepreneur with a penchant for baking. She is passionate about communication, continued learning and connecting people. You can follow her on Twitter: @shawgret
If you tell a friend who labors in an unchallenging 9 to 5 job that you’re going to pursue your Luxury MBA they might think you’re pulling their leg (or acting annoyingly pretentious). They might also have a laugh guessing what your courses will be—Mink Fur Gowns 101 anyone?
In reality, luxury brand management MBAs, majors and certifications are actually incredibly useful; they sharpen your business skills and nurture your understanding of the growing luxury management sector.
Business schools such as HEC Paris, London Business School and ESSEC have created tailored MBA programs, degrees, hands-on training and clubs that prepare tomorrow’s leaders in the high-brow and frenetic luxury management sector so that they are well-equipped to deliver exactly what their clients desire.
Students learn how to properly manage creative projects, launch products, develop marketing strategies and cover communication campaigns just to name a few of the skills that are covered. Thriving in the world of luxury is no mean feat, which is why pursuing such an MBA can be vital to your success.
Let’s take a closer look at what some of the best business schools have to offer:
ESSEC offers an 11-month MBA in International Luxury Brand Management at their campus just outside Paris, France. The program was first established in 1995, and is currently partnered with the likes of L’Oreal, Gucci, Christian Dior, Swarovski and Calvin Klein.
Students are taught to look at issues in the industry from a global perspective, and get to study complex situations from financial, business and cultural angles. There are four parts to the program:
- Business Knowledge & Market Trends;
- Luxury Brand Management and Semiotics;
- Luxury Sector Management; and
- A two-month consulting project at a prestigious company.
Field trips are an important part of the program as well, and recent trips have included jaunts to Dubai, Italy and Hong Kong.
HEC Paris is one of the world’s leading business schools. Located in one of Europe’s capitals of luxury, HEC Paris offers a rapid-fire two-week luxury program that is aimed at people who already work in the sector and want to take their game to the next level. The course takes place across three cities:
- Milan; and
Students who attend the course usually already have solid experience in the world of luxury brands, and the course is known for its exclusivity. Lasting just two weeks, it seeks to endow its students with the right kind of skills, mindset and understanding that will help them succeed at luxury companies and brands around the world.
The course is super hands-on, very demanding and focuses on an all-round vision of luxury that takes a look at all its various sectors and facets.
London Business School
London Business School’s Global MBA (Luxury Brand Management) program is offered in three stages:
- Stage I encompasses marketing and business environment, accounting and managerial finance, systems and operations management, as well as research methods.
- Stage 2 moves to strategic management and leadership, luxury brand management, global marketing management and research methods.
- Stage 3 includes an online dissertation and research methods and is worth as many credits as the first two stages combined.
The program seeks to endow the student with a firm understanding of luxury brand management practices. Skills learned by the student include strategic, marketing and research skills, while intimate knowledge of this specialized industry is also a desired outcome.
The leading business school in Italy, SDA Bocconi offers both a one and a two year MBA. When it comes to the luxury market, their Executive Open Course schedule allows you to update your skills through the Strategic Management of Luxury Business class.
Luxury Connect Business School
Other schools are built entirely around luxury brand management. India is home to just such a school in LCBS (Luxury Connect Business School). This school boasts a unique experience while you train and works in collaboration with the International University of Monaco to offer a diploma or post-graduate courses.
When you don’t have the time or resources to devote a full year (or even two weeks) to a luxury training program, other top European business schools such as IMD invite executives from luxury brands such as Hublot to Discovery Events geared toward fueling discussions, sharing knowledge or best practices and experience in luxury marketing and innovation.
There is certainly no wrong time to pursue an MBA or major in luxury brand management. Rather, there is always a right time. Luxury companies are growing all the time, with some recording growth of 27% in the last three years. If entering the world of luxury is something you’ve been thinking about, getting on board a luxury MBA, or major at a top school, is a great start.
I’ve frequently written about the importance of the customer relationship when selling luxury. I’ve focused on the need to use the right language and gestures to create an environment of elegance and grace. But, until now, I hadn’t thought about intimacy and how it relates to luxury.
In the excellent article “Luxury Institute Reveals 7 Major Improvements Store Managers Recommend to Drive Sales Performance Right Now,” Milton Pedraza, CEO of Luxury Institute, LLC, shares results of an intimate focus group he conducted with store managers of premium and luxury brands and shares their best practices and recommendations to improve sales. Continue reading