Luxury Institute News

October 30, 2014

October 21, 2014

Luxury Institute Introduces Luxcelerate, an Empirically Proven Method to Drive High Performance in Building Client Relationships

Marketwired
October 21, 2014 80763_LuxcelerateLogo

NEW YORK, NY–(Marketwired – Oct 21, 2014) – Today, the New York-based Luxury Institute announced the launch of Luxcelerate, an enhanced version of its innovative successful 7-Step Customer Culture process. Luxcelerate is designed to accelerate sales performance via a proprietary methodology that focuses on empowering the customer-facing online and offline associates, helping brands to improve both client relationships and sales exponentially.

Presently, top brands are struggling to both expand and retain their client base. Top brands have a conversion rate of 10-15%, a data collection rate of 30-40% (approximately 25% of this data is unusable) and a first time buyer retention rate of 10%.

Luxcelerate encourages the individual sales associate to learn and execute the best practices in client relationship building. The process is designed to improve sales performance via an exclusive methodology that focuses on relationship building, while improving a brand’s conversion, data collection and retention rates.

Luxcelerate’s proprietary methodology is based on shared relationship values and standards that are designed by a brand’s front-line teams, and is therefore customized to fit the unique DNA and culture of each brand. Custom education programs use empirically proven learning principles to drive retention of critical knowledge. Measurement and reinforcement methodologies are then deployed individually to guarantee consistent daily execution. The outcome is humanistic, effective client relationship building that leads to sharp increases in sales.

Luxury Institute’s CEO Milton Pedraza developed Luxcelerate’s 7-step methodology. Mr. Pedraza established this innovative methodology after being inspired by best practices from education, medicine and aviation. Using this process, a number of top-tier luxury brands have doubled, or tripled, the accurate collection of critical client data, and have significantly increased client conversion and retention rates. Luxury Institute has worked with the top brands of major luxury groups, well-known brands owned by private equity firms, and small boutique brands, to drive sales at rates of 15-30% per annum.

“The Luxury Institute was invaluable in helping Malia Mills define and implement our clienteling process. The first quarter that we implemented our program we increased sales by a significant amount.” — Carol Mills, Co-Founder, Malia Mills

“Since embarking on this project, we have seen double digit increases in data collection, conversion and a significant acceleration in retail momentum.” — Claudia Poccia, President and CEO of Gurwitch, Owner of the Laura Mercier brand

References are available upon request. For more information please email luxinfo@luxuryinstitute.com or fill out a contact form at www.luxuryinstitute.com

Source: http://www.marketwired.com/press-release/luxury-institute-introduces-luxcelerate-empirically-proven-method-drive-high-performance-1959706.htm

October 14, 2014

WEALTHY AMERICANS RANK PREMIUM WINES, DIVULGE SPENDING AND DRINKING HABITS IN NEW LUXURY INSTITUTE SURVEY

Market Wired

NEW YORK, NY — (Marketwired) — 10/14/14 — More than two-thirds (70%) of wealthy U.S. consumers, under the age of 50, drink wine at least once a month, and they’re willing to pay premium prices for preferred vintages — an average of $48 per bottle at retail and $64 at a restaurant. These are among findings of the New York-based Luxury Institute’s just released Luxury Brand Status Index (LBSI) premium wines survey.

Consumers 21 and older from households with income of at least $150,000 a year evaluated 20 premium domestic wine brands on the degree to which each embodies the four “pillars” of brand value: superior quality, exclusivity, enhanced social status and an overall superior consumption experience. Respondents also reveal which wines are worth paying premium prices, which they would recommend to people close to them, and which brand they will buy next.

Based on overall 1-10 LBSI scores, Ghost Pines (7.65) earns top honors, and it ranks the highest on all four pillars of value. Known for California winemaker Michael Eddy’s multi-appellation blends of grapes from Napa, Sonoma, Monterey and San Joaquin counties, Ghost Pines is also the brand consumers deem most worthy of a price premium, even though many of its bottles sell for less than $20.

Other highly ranked premium domestic brands include Mount Veeder (7.39), Meiomi (7.30), Bridlewood (7.16) and Edna Valley (6.90).

“Winemaking is the quintessential luxury business in many ways,” says Luxury Institute CEO Milton Pedraza. “Brand value begins with the best-quality raw materials and grows with fine craftsmanship and a relentless focus on execution and consistently delighting customers.”

Contact the Luxury Institute for more details and complete survey data.

Visit us at www.LuxuryInstitute.com and contact us with any questions or for more information.

The Luxury Institute, LLC
luxinfo@luxuryinstitute.com

Source:

http://www.einnews.com/pr_news/229093149/wealthy-americans-rank-premium-wines-divulge-spending-and-drinking-habits-in-new-luxury-institute-survey

October 1, 2014

Coldwell Banker Previews International Luxury Market Report Reveals Newcomers On List Of Hottest U.S. Cities For Luxury Home Sales

PR Newswire
October 1, 2014
High Net-Worth Consumer Survey Reveals Dramatic Gender Gaps
MADISON, N.J.Oct. 1, 2014 /PRNewswire/ – Quiet, unassuming areas adjacent to traditional luxury markets have rapidly transformed into hotbeds of luxury real estate in the 12-month period from July 1, 2013 through June 30, 2014.  Leading the way and making its debut in the top 5 U.S. luxury markets for homes valued at $1 million+ is San Jose, where high-end home sales are up a staggering 76% from this time last year, according to the Luxury Market Report prepared by the Coldwell Banker Previews International® marketing program. With Silicon Valley luxury real estate on fire, the affluent enclave of Atherton doubled its sales in the $10 million+ range from 2013. Burlingame, located approximately a mile from Hillsborough in Northern California emerged in the $10 million+ list for sold homes for the first time, most likely as the result of low inventory in the Bay Area’s most sought-after ZIP codes. Adjacency is a powerful trend playing out in high-demand luxury cities well beyond Silicon Valley and the Bay Area, notably in Miami.North Miami Beach made its debut among the top 20 cities for $10 million+ homes sold —signaling that luxury buyers are expanding their horizons beyond the typical hotspots of Miami Beach, South Beach and the private communities of Star and Fisher Islands. Overall, San Francisco led the nation with the highest number of sales in the $1 million+ category—up nearly 57% from this time last year. During the last 12 months through June 2014, the top five U.S. cities with the highest number of luxury home sales valued at $1 million+ are:

Coldwell Banker Previews International Luxury Market Report

Ranking

City

State

Number of Home Sales Valued at $1 million+

1

San Francisco

Calif.

2,485

2

Los Angeles

Calif.

2,170

3

New York

N.Y.

2,145

4

San Jose

Calif.

1,119

5

Houston

Texas

981

6

Chicago

Ill.

972

7

Naples

Fla.

964

8

Miami

Fla.

933

9

San Diego

Calif.

927

10

Washington

DC

878

The number of sales for four out of five of these top cities is up by at least 36%. Extending the range up to the $10 million+ category, Miami Beach and Aspen have another strong showing against long standing luxury real estate epicenters New York and Beverly Hills.

Coldwell Banker Previews International Luxury Market Report

Ranking

City

State

Number of Home Sales Valued at $10 million+

1

New York

N.Y.

58

2

Beverly Hills

Calif.

28

3

Los Angeles

Calif.

25

4

Miami Beach

Fla.

17

5

Aspen

Colo.

16

6 (tie)

Greenwich

Conn.

14

6 (tie)

Atherton

Calif.

14

7

Santa Barbara

Calif.

10

8

Malibu

Calif.

8

9

Palm Beach

Fla.

7

10 (tie)

Laguna Beach

Calif.

6

10 (tie)

Kailua Kona

Hawaii

6

10 (tie)

Naples

Fla.

6

10 (tie)

San Francisco

Calif.

6

HIGH-NET-WORTH CONSUMER SURVEY The U.S. high-end residential real estate market remains strong, with nearly half (48%) of all wealthy consumers indicating that they plan to purchase a luxury home within the next 12 months, according to the companion survey of wealthy U.S. consumers with a net worth of at least $5 million (penta-millionaires) conducted by the Coldwell Banker Previews International® program and the Luxury Institute.  Younger buyers are by far the most highly motivated to purchase:  An overwhelming 81% of affluent individuals under 35 plan to buy a luxury home in the next year. The survey reveals dramatic generational differences:

  • Penta-millionaires 35 and under reported the highest average purchase price of all age groups - $7.8 million – and have the largest percentage (80%) of all age groups paying all-cash.
  • By stark contrast, wealthy buyers 45-64 paid an average of $2.7 million for their most recent home purchase while buyers 65 and older spent just $1 million.

The report brought to light strong gender gaps:

  • 70% of women reported paying all-cash for their most recent property vs. 57% of men.
  • Women reported buying more expensive homes than men:
    • 22% of women spent $10 million or more for their most recent property vs. 13% of men in the same wealth bracket.
  • 46% of women have plans to buy another home in the coming year, up from 31% in 2013.

Location, location, location may no longer be the golden rule of real estate:

  • With the ability to work remotely now a reality for many, only 25% of the under-35 age group indicate that location dominates their search criteria.
  • Instead, 75% say that lifestyle considerations are the No. 1 factor driving their choice of which home to buy.
  • As evidence of this powerful generational shift, 86% of buyers 65 and older say that location remains their top priority.  

Hottest In-Demand Amenities:

  • Nearly one-third of all wealthy buyers under the age of 45 count a “green” or “LEED certified” home as more important than it was 3 years ago.
  • The trend is also catching on among wealthy buyers of all ages, with 21% saying that they want to buy an eco-friendly home, up from a mere 7% in 2013.
  • As homes become increasingly high-tech, 25% now consider a fully automated home a priority.
  • 37% of respondents under age 35 and 30% of those with a net worth exceeding $10 million will prioritize safe rooms in their next homes.

The full list of the Top 20 Best Performing U.S. Cities in Luxury Real Estate by price points of $1 million+, $5 million+ and $10 million+, and the high-net-worth consumer survey results can be viewed here www.previewslmr.com. About Coldwell Banker Previews International® The Coldwell Banker Previews International program has been a world leader in the marketing of luxury homes since 1933. The Previews® program was acquired by Coldwell Banker Real Estate LLC in 1980 and re-launched as Coldwell Banker Previews International, the brand’s luxury homes program.  The exclusive group of certified Previews Property Specialists make up approximately 8.5 percent of the Coldwell Banker sales associates worldwide.  Coldwell Banker Previews International participated in more than 20,000 transaction sides of homes priced at $1 million or more in 2013. On average, Previews handles $102.7 million in luxury homes sales every day. Coldwell Banker, Previews and Coldwell Banker Previews International are registered marks licensed to Coldwell Banker Real Estate LLC. Each office is independently owned and operated. Sales associates affiliated with Coldwell Banker offices are independent contractors. About Coldwell Banker® Since 1906, the Coldwell Banker® organization has been a premier provider of full-service residential and commercial real estate. Coldwell Banker is the oldest national real estate brand in the United States and today has a network of approximately 84,200 independent sales associates affiliated with more than 3,100 offices in 48 countries and territories. The Coldwell Banker brand is known for creating innovative consumer services as recently seen by being the first national real estate brand with an iPad app, the first to augment its website www.coldwellbanker.com for smart phones, the first to create a iPhone application with international listings and the first to fully harness the power of video in real estate listings, news and information through its Coldwell Banker On LocationSMYouTube channel.  The Coldwell Banker System is a leader in niche markets such as resort, new homes and luxury properties through its Coldwell Banker Previews International® marketing program.  Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.  Each office is independently owned and operated. Coldwell Banker is a subsidiary of Realogy Holdings Corp. (NYSE: RLGY), a global leader in real estate franchising and provider of real estate brokerage, relocation and settlement services. Methodology Manhattan area active listing data has been gathered from the Real Estate Board of New York (REBNY). Not all Manhattan area real estate brokerage firms make Information about their property listings available to any cooperative resource, including REBNY.  Manhattan area sales data has been gathered from REBNY and from StreetEasy.com, an online consumer and private industry portal that reports closed real estate transactions from REBNY as well as other reporting brokerage resources. Not all Manhattan area real estate brokerage firms report their closed sales to any cooperative resource, including StreetEasy.com and / or REBNY. All other data has been gathered from the Multiple Listing Service (MLS) databases known or believed to be the primary real estate broker cooperative resources for each market referenced in the report. All closed sales activity reported is for the annual period July 1, 2013 through June 30, 2014. Closed sales reported to the MLS significantly later than this analysis period will not be included. All active status listing records were downloaded and processed to the same standards, and on various dates, during the months of July and August, 2014. Property specific listing and sales records were standardized to USPS address city and ZIP Code, inaccurate list and sale prices were corrected when necessary, and all duplicate records were manually excluded. As a result, statistics available via the source data providers may not correlate to this analysis. While all results are believed to be highly accurate, MLS systems do not report all real estate activity in their primary marketplace, and there may have been property transfers not included in this analysis. Copyright © 2014, Real Data Strategies, Inc. All rights reserved. Licensed for the exclusive use of Coldwell Banker Real Estate LLC. The Luxury Institute, in partnership with the Coldwell Banker Previews International® program, conducted research on the topic of real estate during Quarter 2, 2014. This in-depth survey includes responses from 506 ultra-wealthy male and female consumers in the United States. Respondents were recruited and screened to only include those age 21 or older with a minimum gross annual household income of $200,000 and a minimum net worth of $5 million.

SOURCE Coldwell Banker Real Estate LLC

Media Inquiries:

Athena Snow

Coldwell Banker Real Estate LLC

973.407.5590

Athena.Snow@coldwellbanker.com

Holly Taylor

Rogers and Cowan for Coldwell Banker Real Estate LLC

310.854.8115

hetaylor@rogersandcowan.com

SOURCE Coldwell Banker Real Estate LLC RELATED LINKS http://www.coldwellbanker.com http://www.prnewswire.com/news-releases/coldwell-banker-previews-international-luxury-market-report-reveals-newcomers-on-list-of-hottest-us-cities-for-luxury-home-sales-277723761.html

September 23, 2014

Luxury Institute Survey Of High-Income Travelers from Europe, China and Japan Reveals Brand Status Ranking Of World’s Top Luxury Hotels

NEW YORK) September 23, 2014 – The New York-based Luxury Institute has released findings of its 2014 Luxury Hotels Brand Status Index (LBSI) survey of affluent overseas travelers who shared detailed impressions and evaluations of 37 global luxury hotel brands.

LBSI scores (1-10) are based on each brand’s perceived quality, exclusivity, social status and overall guest experience. In addition, affluent consumers weigh in on whether a hotel deserves premium pricing, if they would recommend it to people close to them and how likely they are to stay at a brand’s property on their next trip.

Here are the top five brands as rated by wealthy consumers from each region, with Europe including the U.K., Germany, France and Italy.

Europe:Small Luxury Hotels of the World (7.96), The Ritz-Carlton (7.95),Armani Hotels (7.88), Mandarin Oriental (7.86), Leading Hotels of the World (7.77)

China: Leading Hotels of the World (8.62), Oberoi (8.57), The Luxury Collection (8.54), Firmdale Hotels (8.53), Raffles Hotels and Resorts (8.50)

Japan:Aman Resorts (8.19), Oberoi (7.83), Waldorf Astoria Hotels and Resorts (7.80), The Ritz-Carlton (7.73), Orient-Express Hotels (7.68)

“The luxury hotel industry is growing in potential, but also in the dramatic number of brands that have top tier offerings,” says Luxury Institute CEO Milton Pedraza. “The winners are those who can consistently provide remarkable guest experiences, as rated by the clients.”

Respondents reviewed the following hotel brands: Aman Resorts, Armani Hotels, Banyan Tree, Club Med, Como Hotels and Resorts, Conrad Hotels and Resorts, Fairmont Hotels and Resorts, Firmdale Hotels, Four Seasons, Grand Hyatt, InterContinental, Jumeirah, JW Marriott, Kempinski Hotels, Le Meridien, Langham, Leading Hotels of the World, Loews Hotels, The Luxury Collection, Mandarin Oriental, Oberoi, Orient-Express Hotels, Pan Pacific, Park Hyatt, The Peninsula Hotels, Raffles Hotels and Resorts, Regent, The Ritz-Carlton, The Rocco Forte Collection, Rosewood, Shangri-La Hotels & Resorts, Small Luxury Hotels of the World, Sofitel, St. Regis, Taj Hotels Resorts and Palaces, W Hotels and Resorts, and Waldorf Astoria Hotels and Resorts.

Contact the Luxury Institute for more details and complete rankings.

Visit us at www.LuxuryInstitute.com and contact us with any questions or for more information.

September 16, 2014

Luxury Executives Offer E-Commerce, Sales Force Management Insights In New Luxury Institute Survey

(NEW YORK) September 16, 2014 – The New York-based Luxury Institute released findings from its most recent surveys of luxury executives that focus on luxury sales force management and e-commerce strategies and practices, respectively. More than 120 respondents shared their views, each of them holding titles of chief executive officer, chief operating officer, chief marketing officer, chief financial officer, president, vice president or director. Some executives are entrepreneurs or directors of their own companies.

Underscoring the importance of online commerce, nearly half of all luxury executives say that their companies spend at least 30% of the overall marketing budget developing digital initiatives, ranging from websites to mobile apps. Furthermore, two-thirds of executives say that they are spending more on e-commerce than they did last year, and 59% say that it is still not enough.

The digital marketing goals of highest importance to luxury executives are acquiring new customers (51%), growing brand awareness (38%), and increasing sales (28%).  In terms of directing visitors to their brands, social media sites are the most productive leads, with one in three executives saying that direct links through social media are the most important drivers of traffic outside of customers searching for a specific brand on a search engine.

When it comes to hiring sales representatives, the top qualities executives seek are a good fit with the organizational culture (21%), prior industry experience in a specific luxury category (16%) and proven ability selling luxury goods and services (11%). Nearly 80% say that the most crucial personal attribute of a successful salesperson is the ability to build long-term relationships. Online job boards, word of mouth and employee referrals are the top three ways in which managers find qualified job candidates.

 “In the luxury world, your sales professionals and your digital presence are the two most visible presentations of your brand to consumers,” says Luxury Institute CEO Milton Pedraza. “Investing heavily in these areas and operating by a set of humanistic best practices make tremendous economic sense in terms of higher sales and more repeat business.”

Contact the Luxury Institute for more details and a complete set of survey data.

Visit us at www.LuxuryInstitute.com and contact us with any questions or for more information.

April 30, 2014

High-Income Shoppers Reveal How, Where And Why They Like To Buy Luxury Goods

(NEW YORK) April 30, 2014 – The independent and objective New York-based Luxury Institute has released the second of three multigenerational studies of U.S. consumers, 21 and older, with minimum annual household income of $150,000 per year. Respondents shared details about their most recent luxury shopping experiences, providing valuable insight into shopping behaviors unique to each generation.The age bracket for the Millennial generation ranges from 21 to 34, Generation X includes 35 to 49 year olds, and the Baby Boomer generation starts at 50.

The popularity of online purchases, even for luxury products and services, has risen dramatically. Right now it’s an even split between clicks and bricks: 43.5% of consumers surveyed saying that their last purchase was made online, and an equally-sized 43.5% also said they last bought a luxury item in a store.

Unlike the popularity of the online channel overall, growth of mobile shopping in the luxury industry remains slow. The vast majority of recent online luxury purchases were completed on a computer, and only 2% made via smartphone. Affluent Millennials have been quicker to embrace on-the-go mobile luxury shopping.

The various sources of influences consulted prior to a purchase show the biggest generational differences. They all gather information from brand websites, online consumer reviews, friends and family and sales associates, but Baby Boomers are far less likely to be swayed by advertising than younger shoppers.

Millennials prefer to conduct research in-store before purchasing online, and they are also open to receiving emails or text messages from luxury brands, or even individual salespeople. The 21 to 34 year olds are also the group most likely to engage with companies on digital platforms like social media and mobile applications.

“Luxury brands are still trying to understand how to capture the loyalty of affluent Millennials, because that really means cultivating the next generation of consumers and keeping your brand relevant,” says Luxury Institute CEO Milton Pedraza. “Understanding diverse shopping behaviors of different generations of wealthy consumers is essential for catering distinct marketing strategies that resonate with each of them.”

Please visit us at www.LuxuryInstitute.com and Contact Us with any questions or for more information about specific brand data and rankings.

The Luxury Institute, LLC
luxinfo@luxuryinstitute.com

April 24, 2014

How Do Luxury Brands Build Intimate Relationships With Three Generations of Affluent Consumers?

(NEW YORK) April 24, 2014 – In the first of three studies conducted by the Luxury Institute, wealthy consumers across three generations earning at least $150,000 a year share their views on the attributes required for a brand to be considered luxury, the services that luxury brands should offer to earn consumer loyalty, and the luxury purchase decision process.

Overall, affluent Millennials, Generation Xers and Baby Boomers all agree that the quality, craftsmanship, customer service, and design must be impeccable for a luxury brand to succeed. Millennials actually place greater emphasis on luxury brand heritage and investment value than Generation Xers, a slight surprise given the common portrayal of young consumers as embracing only the new and trendy. Affluent Millennials also highlight one-of-a-kind items as a vital component, a feature that allows them to express their individuality while also recognizing a brand’s luxury credentials.

Convenient return, refund, and exchange policies, lifetime guarantees, and free shipping are extremely important to all wealthy consumers when purchasing luxury.  Shopper expectations have risen dramatically given the practices of online only retailers who seek to capture market share from traditional retailers. As a result, affluent consumers now perceive these complimentary services as the norm, especially when spending significant amounts on luxury purchases. Millennials who grew up in the age of discounting and of being courted by brands find rewards programs as well as personalized communication and services far more desirable vs. Baby Boomers.

Given the plethora of marketing platforms utilized by brands today, younger affluent generations are more knowledgeable about luxury products and services, while Baby Boomers rely on previous experiences to impact their purchase decisions. “Even though wealthy Millennials have information and content at their fingertips, they are still more likely than Boomers, who have established preferences over the years, to seek out the opinions of others when making purchase decisions,” says Luxury Institute CEO Milton Pedraza.

Please visit us at www.LuxuryInstitute.com and Contact Us with any questions or for more information about specific brand rankings.

The Luxury Institute, LLC
luxinfo@luxuryinstitute.com

March 10, 2014

Luxury Institute Reveals Wealthy Gamblers’ Rankings And Specific Critiques Of Casinos in Las Vegas, Atlantic City And Connecticut

(NEW YORK) March 10, 2014 – For the past two decades, casinos at top gambling resort destinations in the United States have expanded on a grand scale and competed aggressively to attract high-end travelers. To find out how these casinos are currently perceived by wealthy consumers, the New York-based Luxury Institute surveyed men and women 21 and older with a minimum household income of $150,000 to gather detailed opinions and ratings of top casino resorts in three major U.S. gambling destinations:

Las Vegas: ARIA, Bellagio, Caesars Palace, Cosmopolitan, Encore, Mandalay Bay, MGM Grand, Mirage, Palazzo, Venetian, and Wynn Las Vegas

Atlantic City: Borgata Hotel Casino & Spa, Caesars Atlantic City, Golden Nugget, Harrah’s Resort, Revel Casino Hotel, and Trump Taj Mahal

Connecticut: Foxwoods and Mohegan Sun

Results from this 2014 Luxury Brands Status Index (LBSI) include an overall ranking of each property given eight attributes of status related specifically to casinos: luxurious guest rooms, superior service staff, unique dining options, attractive gaming floors, lavish pool areas, clubs, appealing entertainment, and desirable retail stores.

Wealthy travelers also assess each property’s worthiness of a significant price premium, and whether or not they would recommend it to family, friends and business associates.

Results show significantly higher LBSI scores for Las Vegas casinos compared to East Coast properties. One notable exception is the Borgata in Atlantic City.

“Even as more cities in the United States start to open casinos, Las Vegas is clearly still the leading destination for luxury properties, especially for affluent travelers,” says Luxury Institute CEO Milton Pedraza. “All elements of the casino, not just the gaming floors, are now crucial to create unique customer experiences.”

Respondents have average income of $370,000 and average net worth of $3.1 million.

Please visit us at www.LuxuryInstitute.com and Contact Us with any questions or for more information about specific brand rankings.

About the Luxury Institute (www.luxuryinstitute.com)
The Luxury Institute is the objective and independent global voice of the high net-worth consumer. The Institute conducts extensive and actionable research with wealthy consumers globally about their behaviors and attitudes on customer experience best practices. In addition, we work closely with top-tier luxury brands to successfully transform their organizational cultures into more profitable customer-centric enterprises. Our Customer Culture consulting process leverages our fact-based research and enables luxury brands to dramatically Outbehave as well as Outperform their competition. The Luxury Institute also operates LuxuryBoard.com, a membership-based online research portal, and the Luxury CRM Association, a membership organization dedicated to building customer-centric luxury enterprises.

February 5, 2014

Wealthy Shoppers Tell Brands How They Want Technology Integrated Into The Shopping Experience

(NEW YORK) February 5, 2014 – The New York-based Luxury Institute asked consumers 21 years of age and older from U.S. households with minimum annual income of $250,000 about their views on incorporating technology in the shopping experience.

Nearly half (47%) of wealthy consumers say that a sales professional providing live chat or video assistance online would help them understand more product details, and 58% appreciate the convenience of instant answers.  Only 15% of shoppers say that they have tried chat or video and refuse to do it again.

Wealthy shoppers do not mind companies collecting personal data and using it for customized marketing, but they do show strong distaste for clandestine data gathering via mobile phones, facial recognition software and GPS tracking; 69% say information collected in this manner is a privacy violation.  Just 24% approve of retailers using facial recognition software to identify them and observe shopping habits.

Using technology in-stores to accelerate checkout is popular, but many affluent shoppers shy away from self-checkout.  Almost three-fourths (73%) say that they appreciate the time savings of checking out via mobile devices instead of standing in line at cash registers.  Although 45% say that self-checkout is more efficient, 44% prefer transactions with help from staff.

Technology has little to do with what wealthy shoppers desire most: free shipping and returns, cited by 92% of respondents.

“Habits of today’s wealthy consumer have increased the desire to browse, reserve and purchase using a mix of channels,” says Luxury Institute CEO Milton Pedraza. “Technology allows brands to leverage customer data and shopping habits, however salespeople still play a vital role into creating unique and engaging experiences.”

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