Make sure your online customers are happy before you try to wow them.

online_shoppingIn Michiel Gasterlaand’s article “The Secret to Winning the Customer Service Battle in eCommerce” in Entrepeneur, he states that only 1% of web store customers feel their expectations are being met. Web stores are missing the opportunity to differentiate themselves through customer service. Gasterlaand writes:

Whether they realize it or not, web stores now are competing primarily on customer service. Apart from offering a great product for a great price, customer service clearly is the new battleground.

Continue reading “Make sure your online customers are happy before you try to wow them.”

The Tricky Balance of Marketing to the Affluent

diamond2Yesterday’s Marketplace radio program featured Andrew Sacks, president of AGENCYSACKS and The Affluence Collaborative (two companies that help brands target affluent consumers) speaking about how brands can appeal to the affluent customer. Sacks highlighted two critical points: Continue reading “The Tricky Balance of Marketing to the Affluent”

Coach Yourself to Sales Success With These Three Questions

question-markYesterday I was at the gym. (Though I never achieved the bikini body I’d hoped for this summer, I do try to stay fit). While there, I noticed a sign-up sheet for a free session with a personal trainer. I thought this would be a great opportunity to pick up tips on my workout and get the most out of my routine.

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Do your salespeople really understand the luxury perspective?

Ritz-Carlton ServiceWhen I was at BMW, we designed a training program for the dealers that required them to stay at a Ritz-Carlton hotel. What the dealers experienced as Ritz-Carlton customers became the basis for their learning. We realized we had been asking dealers to deliver a luxury experience to BMW customers without them fully understanding what that meant. After their Ritz-Carlton stay, the dealers were able to articulate their expectations as luxury consumers, and in turn, they successfully translated that experience to their own customers. Training Magazine has just posted an article about a similar learning program conducted by the Turkish luxury supermarket brand Migros, entitled “Migros’ Luxury Perspective.”

The Migros’ training program was conducted in two phases: first was an in-class session, followed by a second phase that included a a trip to New York and London. According to the article:

The program includes competitor analyses, shopping experiences in luxury stores, experience sharing from world-famous luxury brand sellers, a session of listening to expectations from luxury customers, eating in luxury restaurants, staying in luxury hotels, and many other lifestyle experiences.

The entire experience was designed to help associates get “closer to the customers in terms of general culture and experience.” The result was an increase in customer loyalty from 6% to 15%,

What are you doing to help your sales associates better understand the luxury experience you’re asking them to deliver?

“What’s it to you?” – Igniting Customer Desire

matchWhat’s it to me? Everything! If you can’t articulate why your product or service is important to me, you’ll likely not win me as a customer. Very often sales associates try to differentiate themselves by becoming subject matter experts. They then overwhelm potential clients with a litany of facts and product features with no regard for what’s actually important to the customer. In other words, what is the benefit to the customer?

Being able to distinguish between a feature (a statement of value) and a benefit (a personalized statement of value) is the key to igniting customer desire. When purchasing a luxury service or product, it’s less about need than it is about desire—and desire is emotion based. That means in order to tie into the emotion that will create desire, you need to position not only the value of your product or service, but its value to your customer. Continue reading ““What’s it to you?” – Igniting Customer Desire”

Has your luxury experience been ruined by bad language?

badwordsIn this excellent Forbes article “Are You Killing Your Customer Service with these Language Mistakes,” Micah Solomon confirms what I’ve believed for years… the language your sales associates speak must align with your brand. This canon holds true especially for luxury brands, since luxury customers have heightened service expectations.

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“I’m just looking” can mean so much more

OLYMPUS DIGITAL CAMERAYour customers have said it. You’ve probably said it yourself. “No thanks, I’m just looking” is the most common response to the oft heard question “May I help you?”

How can you avoid the “I’m just looking?” response from customers? The first step is to stop asking closed-ended questions. By using inquisitive, open-ended questions, you’ll initiate a dialogue and side-track the automated “I’m just looking” comeback. (Check out this previous blog post for tips on asking open-ended questions.)

Continue reading ““I’m just looking” can mean so much more”

What do you think of smart luxury?

smartIn today’s New York Times, fashion commentator Vanessa Friedman coined a new term (with the help of one of her readers): smart luxury. Friedman uses the term to describe designer Tomas Maier’s new aesthetically luxurious styles that don’t carry a luxury price tag. Friedman suggests ‘smart luxury’ could serve double duty as a substitute for the less pleasant sounding ‘wearables’. Who wouldn’t want to buy smart luxury?

What are your thoughts? Is ‘smart luxury’ a phrase that will catch on? (Read the New York Time’s article here.)

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7 out of 10 Affluent Customers Disappointed by In-Store Service

2014%20Brochure%20picIn a previous post I dissected the upcoming Journal of Consumer Research report that purportedly found customers who receive poor treatment from sales associates in a luxury retail environment are more likely to make a purchase.  Many blogs turned this particular factoid into a headline. But if you dove deeper into the study, you saw that this off-putting approach had no staying power. It only worked on aspirational customers and not for customers who were already familiar with the brand. Even worse, the majority of aspirational customers who, in a vain attempt to be considered “part of the club,”  succumbed to the snooty behavior of their luxury sales person, wound up returning their purchases within two weeks.

Continue reading “7 out of 10 Affluent Customers Disappointed by In-Store Service”