The January Return Blues: Turning Returns into Opportunities

The word ‘return’ can make even the most seasoned sales associate quiver with fear. Yet the returning customer presents a golden opportunity for luxury associates to foster the customer relationship. Your mindset can play an important role in cultivating customer relationships. If you view “returns” as a hassle or something that causes you stress, then customers will sense your aggravation. But if you treat the return as an occasion to build and strengthen the connection you have to your customers, you will have laid the path for them to return again and again. Below are some tips to help you avoid the “January Return Blues.”

  • There’s a customer in front of you!
    Here’s your chance to distinguish yourself through your grace and elegance, and ensure the customer remembers you above all the other sales associates they’ve seen today. Being warm and welcoming when handing returns shows how much you value your customers. That in turn, will keep them coming back.
  • You now know what the customer doesn’t like!
    What a great opportunity you have to explore what your customer didn’t like about the gift and what they might fancy even more. Offer some suggestions on items that might they might find more appealing.
  • Suggest ways to make sure it doesn’t happen again!
    Offer options for sharing their “wish list” with a friend or loved one to ensure they receive the perfect gift next time.

Remember, it takes about nine times as much as to make a new customer, as it does to retain an old customer.  So to help you develop on positive perspective of the word ‘RETURN’, consider this acronym:

Readiness – Expertise – Trustworthiness – Understanding – Responsibility – Nurturing

Readiness – Be ready for your customers by preparing open-ended questions in advance to help you establish an emotional connection. Be prepared to take note of important dates, celebrations, preferences, and personal details. Ensure you are practiced on how to present your contact information to the customer gracefully.

Expertise – Be an expert on your product and services. Share what new items or features may be debuting that might be of interest your customer. Offer to be available to answer any questions or concerns they may have in the future.

Trustworthiness – How many times has a sales associate asked to you provide a phone number or email address without first establishing a level of trust? If you take the time to create an emotional connection, customers will be more likely to share their personal information. In addition, if you explain why you’re asking for contact information – for example, to keep them informed of new products, upcoming events, sales, etc. – you will provide an incentive for customers to share their data.

Understanding –  It’s not the number of questions you ask, but rather the kind of questions you ask that will help you build trust in your customer relationships. Asking open-ended and strategic questions will not only increase your warmth factor, you’ll also learn what your customers like and what features are most important to them. This earlier post will help you learn what questions to ask: “Good Salespeople Have Great Answers, but Great Salespeople Have Great Questions.”

Responsibility – As a luxury associate, you are responsible for cultivating the client relationship. Consider all the reasons you may have to reconnect with a customer once you’ve made the sale: a handwritten thank you note, a follow-up call to make sure everything is working, a check-in to ensure the gift was delivered, a service reminder, or an invitation to an event.  Additionally, clienteling software can help remind you of upcoming service appointments, special dates, and what’s on customers’ wish lists.

Nurturing – Any relationship requires nurturing and attention in order to grow. Luxury associates need to demonstrate genuine care and concern for their customers. 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. Recently a Gartner Group study found 80 percent of your sales will come from just 20 percent of your existing customers. This is why it’s so important to continually nurture the customer relationship.

If you keep in mind that every return presents an opportunity for you to connect with a customer, you can turn January into your favorite time of year.

The January Return Blues: Turning Returns into Opportunities

The word ‘return’ can make even the most seasoned sales associate quiver with fear. Yet the returning customer presents a golden opportunity for luxury associates to foster the customer relationship. Your mindset can play an important role in cultivating customer relationships. If you view “returns” as a hassle or something that causes you stress, then customers will sense your aggravation. But if you treat the return as an occasion to build and strengthen the connection you have to your customers, you will have laid the path for them to return again and again. Below are some tips to help you avoid the “January Return Blues.”

Continue reading “The January Return Blues: Turning Returns into Opportunities”

“Thinking” about Luxury

thinkingDoes your heart quicken when you see someone carrying a Chanel bag? Do your eyes widen when you spy a Lexus LS turning the corner? It’s been said that luxury is not defined by need but by desire. There’s a certain feeling you get when wearing, driving, or obtaining the luxury item. You feel special.

Many of the posts in this blog talk about the role desire plays in luxury sales and customer service (see What’s it to you?” – Igniting Customer Desire and The Value of Luxury). The CEO of Hermès, Axel Dumas, understands how integral creating desire is to his company: Continue reading ““Thinking” about Luxury”

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”

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”

It’s All About That Service!

GiftThe month of December is traditionally one for giving and receiving gifts. It seems fitting then, as I try to select the perfect present, that I’ve spent most of the month addressing the question “What is Luxury?” (see “Is the term “luxury brand” overhyped?” and “More on What is Luxury?“).

We may have to leave the year with the question unanswered, or at the very least, we may have to settle for a paradox, according to a recent article in The Economist: “The Modern Luxury Industry Rests on a Paradox.”

I thought it fitting to wrap up the year with this article. It covers all aspects of the luxury question from many perspectives: age, geography, politics, world events, and social climate. Continue reading “It’s All About That Service!”

Finding Luxury Talent

interviewMy last post talked about educational institutions that now offer Luxury MBA degrees. This led to the question—what happens once you have such as degree? Interestingly, I just ran across an article from the Boston Consulting Group titled, “Minding the Talent Gap: Fashion and Luxury’s Greatest Challenge for the Next Decade.” The article reveals that luxury companies are struggling to find the right talent.  What a perfect time to evaluate whether those Luxury MBA programs provide the same skills and knowledge that luxury and fashion brands seek today. For example, needed skills at the executive level are: analytical and creative skills; retail, product, and brand expertise; and international experience. Continue reading “Finding Luxury Talent”

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.

 

 

 

What the Luxury Sales Associate Needs to Know in an Omni-Channel World

omnichannelMore and more luxury and fashion brands are using omni-channel retailing to maximize their brand exposure and increase purchasing opportunities for their customers. For omni-channel to work successfully, the brand message needs to be consistent across all consumer touch points, including in-store, online, mobile apps, social networking, etc. In order to deliver a seamless customer experience, sales associates will need a new level of training in technology, product and processes. Continue reading “What the Luxury Sales Associate Needs to Know in an Omni-Channel World”

The Value of Luxury

auction-paddle-2Luxury has been defined as something that is pleasant to have or experience, but is not a necessity. The concepts of exclusivity and rarity can also factor into the definition of luxury. Value, on the other hand, is determined by the relation of price to perceived benefit. But if luxury is not a necessity, then how do we determine its value? Continue reading “The Value of Luxury”