Luxury Institute News

January 11, 2018

Data Feed: December 15, 2017

Key stats you need to know about today

eMarketer
By: Rahul Chadh
December 15, 2017

 

Net Neutrality Nixed: The US Federal Communications Commission (FCC) voted to end net neutrality regulations that prevented businesses from charging higher prices for better quality content and services delivered over the internet. The action will also end the designation of high-speed internet as a utility. The change was protested by consumer advocates and heralded by those opposed to government regulation.

Social Disconnect: A new report by Common Sense and SurveyMonkey polled parents and teens in the US about the use of social media. It found that more than half of parents thought they were well-versed in their teens’ social media behavior, but only 30% of teens thought their parents were up to speed. In addition, more than one-quarter of parents said they used a tracking or other type of monitoring device to keep tabs on their teens’ online behavior.

Year in Search: Google has released its year-end review of search, reporting that Hurricane Irma was the top trending query in 2017. The iPhone 8 and iPhone X finished second and third, respectively, underscoring the strong hold Apple still has on the collective consciousness. The top 5 was rounded out by former TV host Matt Lauer and soon-to-be royal bride Meghan Markle.

Down with OTT: Video ad serving platform SpotX reported that 26% of ad spending on its platform in October 2017 was dedicated to over-the-top (OTT) video. That was up from just 8% a year ago. SpotX also expects OTT video to command around 30% of ad dollars spent on its platform by the end of the year.

Premium Plays: According to Freewheel, ad views for premium video content in the US increased by 24% year over year in Q3 2017. Video content featuring full show episodes saw the largest bump, while ad views for live streaming of linear broadcasts posted a smaller gain.

State of Luxury: A survey of affluent consumers across the world from Luxury Institute found that more than nine in 10 respondents expect to purchase luxury services or items in the coming year. And more than one-quarter think they’ll spend more on luxury in 2018 than they did in 2017. Only 9% expected to shrink their luxury spending next year.

 

Source: https://www.emarketer.com/content/data-feed-december-15-2017

 

May 6, 2016

Stella McCartney celebrates individuality to woo next-generation

Luxury Daily
By: Sarah Jones
May 6, 2016

Kering-owned fashion label Stella McCartney is communicating its brand values through a handful of millennial spokesmodels.

To launch its latest scent, Pop, the brand has brought together a posse of personalities who have similar feelings about issues such as sustainability and the treatment of animals, asking them to share their views in a social media campaign. Through this “celebration of individuality, authenticity and adventure,” Stella McCartney opens up its brand to a younger audience whose ideologies may align.

“This campaign feels like it’s taking away the filtered, glossy effect of other social media campaigns on Facebook and Instagram and focusing on providing a real connection with this ‘girl gang,’” said Lauren Klostermann, director of digital marketing at Blue Moon Digital, Denver, CO.

“It targets a younger audience that is interested in issues they share with Stella, including animal rights and sustainability,” she said. “It also emphasizes individuality and acceptance.”

Ms. Klostermann is not affiliated with Stella McCartney, but agreed to comment as an industry expert.

Stella McCartney was unable to comment directly before press deadline.

Personal appeal
Stella McCartney’s #PopNow campaign stars Lourdes “Lola” Leon, the daughter of pop star Madonna and a performing arts student; musician, writer and director Grimes, reach name Claire Boucher; actress and campaigner Amandla Stenberg and animal activist Kenya Kinski-Jones.

When first revealing the campaign faces, the brand’s eponymous founder took to social media, sharing why each of the women inspire her personally. This adds a layer of genuineness to the choice of spokesmodels.

Still campaign imagery shared on Instagram and across other social media channels depicts the young women in natural settings, whether playing an electric guitar sitting on a bed or palling around with each other.

Photographer Glen Luchford, who has previously worked with the brand and worked with Ms. McCartney’s mother Linda Eastman, shot the still campaign.

While the brand began teasing the campaign around the time that the perfume became available in late March, additional video elements of the campaign did not roll out until a month later.

The campaign features the women in separate short social videos, as they talk about their beliefs.

Grimes shares that sustainability is very important to her, saying that an ecological focus is what draws her to Stella McCartney as a brand. She also speaks about her friends, who are not afraid to tell her when her music is not good.

These statements are spoken in voiceover to vintage-tinged footage of the pink-haired Grimes on the California desert.

A second film released May 5 takes a closer look at Ms. Kinski-Jones’ feelings on animals.

As she twirls with pink balloons or hangs with her fellow campaign faces, she talks about how Pop as a fragrance represents the idea of being in the moment and unapologetic.

The animal activist also talks about how people should be thinking of all creatures and not just themselves. This is paired with a picture of a polar bear with the words “Not tested on animals” superimposed.

As a sustainably-focused business that does not use leather, having spokesmodels that reflect not just the brand image but also the ethos will help to reinforce its position. This campaign gives Stella McCartney the opportunity to reach out to younger, cause-minded consumers.

A yet-to-be-released campaign film by Melina Matsoukas follows the foursome on a road trip, a representation of their drive in their own lives. The concept centered on friendship is meant as a departure from the typical fragrance film.

“Pop is a spirit,” said Stella McCartney in a statement. “It is about capturing and celebrating that very special and exciting time when you are finding yourself and coming into your own.

“It is about freedom, and starting your life away from judgments or labels,” she said. “Together as one, these strong young women are a force to be reckoned with.”

Ms. McCartney believes that beauty should enhance natural beauty rather than covering it.

Pop Eau de Parfum, developed under the brand’s licensing deal with Procter & Gamble Prestige, combines tuberose and sandalwood to create a vibrant, contemporary scent. The fragrance is produced using biomimicry technology, extracting oil from a blooming flower rather than processed ones, helping to save a sandalwood tree per every 2,500 bottles.

Taking the concept of flipping tradition, the bottle is an inverted version of the brand’s Stella fragrance bottle, topped with the Stella McCartney coin in metallic hot pink.

Continuing its commitment to the environment, Pop’s packaging was made using technology that limits its ecological impact. The boxes come from sustainably managed forests and the bottles are 100 percent recycled plastic, allowing consumers to support a brand they can trust.

Ms. McCartney approaches her business with an innate sustainability mindset, which she explained to the audience at the 2014 FT Business of Luxury Summit.

From using wind power for a store to foregoing leather and PVC, Ms. McCartney considers environmental friendliness so automatically that she forgets she is doing it. This has become part of her namesake label’s story, even if it is one that it does not overtly promote.

Accompanying the Pop perfume is an accessories collection that includes a Pop Falabella handbag in punchy colors and vegan leather, keychains, scarves and shoes.

“Stella McCartney is looking to connect with a younger, edgier audience with these spokesmodels,” Ms. Klostermann said. “These girls are a down-to-earth version of other Instagram stars like Kylie Jenner.

“The Stella girl cares about specific issues and wants to use her disposable income to support causes that matter to her.”

Next generation
As millennials gain disposable income, marketers are appealing to them with focused campaigns.

Beauty marketer Estée Lauder is appealing to the next generation of consumers with a collection designed specifically for a social media-savvy clientele.

The Estée Edit is retailing exclusively through Sephora in the United States and Canada on March 15, with a coinciding launch campaign featuring influencers and models Kendall Jenner and Irene Kim. When developing the line, Estée Lauder envisioned what its eponymous founder would do to disrupt the beauty market today, keeping heritage at the heart of this new brand extension.

Consumers are split on their willingness to download luxury brand applications, but when dispersed into generations, 72 percent of millennials are inclined to download a branded app, according to a report from The Luxury Institute.

Digitization of the luxury world is slowly evolving as younger generations grow into being affluent consumers. Luxury clients differ across more than just generations, but understanding the prime and upcoming consumer can prepare marketing teams for the future.

“By using video & bios in a magazine-type layout, this will engage the younger audience to hear from spokesmodels that they relate to,” Ms. Klosterman said. “Via the use of Facebook advertising, they will also hit a younger demographic that appreciates the individualistic message.

“Finally, via the use of the #PopNow hashtag, their audience can feel engaged in the mission of the campaign outside of the perfume itself, creating a greater affinity with the overall brand.”

Source: https://www.luxurydaily.com/stella-mccartney-celebrates-individuality-to-woo-next-generation/

October 16, 2015

Authenticity, engagement make for stronger social media presence

Luxury Daily
October 15, 2015
By: Forrest Cardamenis

NEW YORK – Any brand can create a social media account, but using these platforms to create a natural extension of the label and leverage social clout to generate sales and loyalty is another matter, according to a speaker at Luxury Interactive 2015 on Oct. 13.

Social media has shrunk the distance between brands and consumers, but bringing these parties closer together has also destroyed traditional business/customer relationships. To be successful on social media, consumers need to be treated like equals and people, otherwise social presence could, counterproductively, push consumers to competition.

“A lot of brands think ‘We have to do this, we have to create content, we have to get out there,’” said Aliza Licht, also known as “DKNY PR Girl,” former public relations executive for DKNY. “A lot of times the need or the urgency to create content is overshadowing the importance of staying true to your brand’s DNA.”

Social engagement
Establishing your brand’s DNA is crucial to creating an authentic and admired social media presence. Brands must identify their core values and ideas and set up boundaries on what topics they will and will not get involved in online.

Tweeting and posting only about promotions and new products creates an inhuman distance from the consumer’s standpoint, but getting involved in serious sociopolitical discussions could alienate those with differing viewpoints.

DKNY Scandal tweet
DKNY PR Girl often tweeted about social happenings to build authenticity

Any active user on social media will inevitably find themselves in some sort of a crisis, but that only makes it more important to engage with consumers as equals. When communication is this direct, the traditional positioning of the brand being above the consumer no longer works, and it won’t create a network of loyal consumers and defenders when that crisis comes along.

“When you’re friends with a customer you create respect and create a situation where, when you make a mistake – and we all do – you are more easily forgiven,” Ms. Licht said.

In addition, when trying to reach international consumers, the same tricks that work in one country might not work elsewhere, so international partners are crucial in helping brands find effective ways to engage. That said, there are common denominators. People all around the world want to be heard.

dknyprgirl twitter
DKNY PR Girl twitter

In one case, Ms. Licht tweeted about the 100 percent humidity in New York on a summer day. “Of course it’s a hair-wash day,” she added. By doing so, she found a natural and enticing way for followers all over the world to share their thoughts with the weather, and retweeting replies from different countries showed that DKNY listened to global consumers.

Search functions also make it easy to “listen” on social media. Users talking negatively about a brand may not be tagging that brand in their posts, but they can easily be searched, and the findings can be used to make changes that will satisfy doubters before competitors steal them away.

As it is in everything else, self-reflection and self-criticism is crucial to creating a strong social presence. A brand should examine its output to ensure it is putting forth the best version possible of itself in terms of message and attitude.

Youth movement
With millennials growing into affluence and becoming a key market, social media presence will only grow in importance.

Social media has created a unique environment that allows for personal engagement between consumers and brands, according to the creative director of Loewe at the Condé Nast International Luxury Conference April 23.

Social media allows consumers to be involved with brands on an instant basis. The stories that can be told and the people that can be reached through modern mediums change the face of the luxury industry (see story).

The genuine and personal connection that social media lends itself to is more attractive to consumers who want more from businesses than constantly being sold to.

Consumers are split on their willingness to download luxury brand applications, but when dispersed into generations, 72 percent of millennials are inclined to download a branded app, according to a report from The Luxury Institute.

Digitization of the luxury world is slowly evolving as younger generations grow into being affluent consumers. Luxury clients differ across more than just generations, but understanding the prime and upcoming consumer can prepare marketing teams for the future (see story).

“A lot of brands still maintain that position of ‘We’re up here, you’re down here, we’ll push content to you when we feel like you need to know something, we’re not going to respond to you, but we’ll let you know what is important,’” Ms. Licht said. “I don’t agree with that approach. I think being likable and being an engaging platform makes a huge difference in growing a community.

“The anti-elitist mentality is a winning mentality,” she said.

Source: https://www.luxurydaily.com/151568/

September 25, 2014

Social network aims for country club status

StarTribune
September 25, 2014
By Katie Humphrey

It could be a story from “The Onion”: Join an online country club for the elite, memberships starting at $9,000.

Except it’s true. Last week, a Minneapolis man launched Netropolitan.Club, a social network for the rich and exclusive. Forget the commoners on Twitter and Facebook. Netropolitan founder James Touchi-Peters bills his site as “a place to talk about fine wine, fancy cars and lucrative business decisions without judgment.”

Its Sept. 16 launch got so much buzz — mostly of the snarky variety — that Jimmy Fallon mentioned it on “The Tonight Show,” imagining posts about firing the gardener and the caviar bucket challenge.

The site’s landing page got so many hits it was slow to load. Then the hackers descended. On Sunday evening, Touchi-Peters, who used to conduct the Minnesota Philharmonic Orchestra, pulled the site down for security upgrades.

“We were aware that people would try to hack the Netropolitan Club, but we were not prepared for the overwhelming amount of attacks,” he said in a statement posted on the Netropolitan Club’s Facebook page. (Because, apparently, even elite social networks need Facebook.)
He said it would be back up by the end of the week.

But will it catch on? We may never know. Touchi-Peters won’t say how many members have joined the site, or give any hint of their backgrounds. He also won’t give anyone a peek at the advertising-free network — unless they pony up the whopping membership payment.

“The attraction is that it’s private,” he said. “So far it’s exceeded our wildest expectations.”
Still, it could be a tough sell.

Privacy is valuable to the wealthy, but so is value, said Milton Pedraza, CEO of the Luxury Institute, a New York City research firm specializing in data and insights of high-net-worth consumers.

“I’m a bit of a skeptic,” Pedraza said of Netropolitan. “What are the benefits?”

Previous attempts to create elite-only networks have mostly fizzled, Pedraza said. One that is still active, ASmallWorld, is focused on jet-setting young adults, offering travel perks and hosting parties around the world. Membership, by invitation only, is $105 a year.

Touchi-Peters, a musician who travels frequently, said Netropolitan is aimed at like-minded people who may not have time to socialize in person, a group he calls the “working wealthy.” Or, he said, it could also appeal to rich people who live in rural areas and don’t have access to traditional social clubs. Users create profiles and can post on message boards organized by interest.

“Most people are going to join to meet other people,” Touchi-Peters said.

More specifically, people who can afford $9,000 upfront and the subsequent $3,000 annual fee.
So much for the idea of an open, egalitarian Internet.

That was a myth, anyway, said Seth Lewis, assistant professor of digital media and journalism at the University of Minnesota. Even Facebook started as the digital playground of Ivy League college students.

“It’s almost like [Netropolitan is] trying to put the genie back in the bottle,” Lewis said, referring to the site’s exclusivity. “The proposition is interesting. It’s hard to see how it succeeds.”As for the name Netropolitan, Touchi-Peters said, it’s a play on the words “metropolitan” and “Internet.” He wanted something that spoke to a cosmopolitan crowd, but the title “Cosmopolitan” was already taken.

“Netropolitan does not stand for ‘net worth,’ ” Touchi-Peters said.

But you’d better be worth a lot if you’re going to get past the virtual gate.

http://www.startribune.com/lifestyle/blogs/277098901.html

September 8, 2012

Internet finance: How to kick-start your bright idea

By Claire Adler
Financial Times
September 7th, 2012

A watch brand has emerged as the king of crowdfunding, a trend that allows creative people to connect online with the public for cash to fund their business ideas.

In April, after numerous rejections from venture capitalists and rapidly running out of cash, five 20-something men from Silicon Valley turned to Kickstarter, a site that allows creative companies, including many filmmakers and musicians, to raise money from individuals online.

The site does not charge to set up a campaign. But, if it is successful, the site takes 5 per cent of the final amount. Amazon, which processes the payments, takes 3 to 5 per cent.

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://www.ft.com/cms/s/0/51da221e-f1c3-11e1-bda3-00144feabdc0.html#ixzz26Cbscu00

September 5, 2012

Get Ready for the Loyalty Marketing Renaissance of 2013

Six New Ways to Serve Loyal Consumers in a Smartphone Age
By: Adam Broitman
AdAge.com
September 04, 2012

The essence of loyalty marketing has not changed since its invention; incentivize your best customers and they will not only remain patrons, they will tell their friends about their experiences with your brand. The rise of social technologies has multiplied the positive effects of a brand supporter and underscores the importance of influential evangelists.

Though the substance of loyalty has not changed in the past 30 years, the tactics and technologies required to implement a loyalty program have been displaced — so much so that history may designate the years between 2012 through 2015 as a renaissance in customer loyalty. Here are a few guidelines to use when planning your customer loyalty programs for 2013:

Don’t Just Be Social, Be Helpful
According to a survey by American Express one in five American’s have used social media for customer service. Furthermore, customers, on average, are willing to spend 21% more with companies that provide great service. Given that social media is an ideal channel to directly interact with your customers, a strategic approach is imperative. The mere presence on popular social networks is no longer enough. Simple, canned responses to comments on social networks no longer meet consumer expectations. It is crucial for social media to be treated as a service channel in addition to a promotional channel. The installation of an uninformed employee, armed with no more than a hyperlink to a customer service page is only slightly better than ignoring comments made within social networks.

Forget Gamification, Learn The Game
The Gamification gold rush has led many brands to the construction of superfluous “cart before the horse” initiatives in which badges and leaderboards serve little to no strategic purpose. There are countless theories that marketers can borrow from games, but in order to accurately take advantage of such ideas in an effective manner, marketers must dig deeper and strive to realize the various compulsion loops and social dynamics that make games “sticky” (apologies for the late 90′s lingo). Here are a few links for inspiration:

  • http://www.mud.co.uk/richard/hcds.htm
  • http://www.mud.co.uk/richard/Shoreditch.pdf

Feel The Power of Post-PC
The post-PC era has put massive computing power, packed in every shape and size screen, in the palm of the everyday consumer. If your legacy POS system is getting in the way of allowing you to implement a cutting edge loyalty program, consider taking advantage of consumer grade products to get the job done.

Take a look at the following payments systems that have integrated elements of loyalty into their platform:

  • Square
  • SAIL (Verifone)
  • PayPal Here
  • NCR Silver
  • Revel Systems

Learn to Outsmart “Showrooming”
“Showrooming” has become a plague for retailers. According to eMarketer, 59% of US smartphone owners have engaged in “showrooming”. Ironically, the very same mobile device that consumers are using to “showroom” can be used to create value. Marketers should look at the way in which luxury brands create value. Luxury marketers are notorious for creating value adding experiences in lieu of price breaks—as such, mobile has become a no-brainer for luxury marketers. According to the Luxury Institute, luxury shoppers expect the following from mobile applications:

  • 46% expect loyalty programs
  • 45% expect early access to sales
  • 53% want access to a sales professional that can help with finding the right product

Remember That Likes Don’t Equal Loves
These days, it is all too easy to create a “like-gated” promotion yet many of the programs that ask for personal information in exchange for entrance into a contest fall flat when it comes to any type of long term engagement. In the endless debate about the value of a “like,” many marketers have concluded that a like is only as good as the communications that follow it. Loyalty can certainly begin with a like, but a like is not guaranteed to get you to a “love”. According to eMarketer, nearly half of branded “likes” have no influence on consumer purchase decisions.

Make Love
Though last on this list, this is the most important thing a brand can do. We have seen brands like Zappos and Warby Parker take brand “amore” to new heights. Each brand uses social media and technology in exciting new ways, but each brand also manages to present their costumers with something marketers and advertisers speak about ad nauseam, “surprise and delight.” There are a variety of new brands such as Warby Parker that are set up as B Corporations. This corporate structure requires a company to generate some sort of “general benefit for society” as part of the way it defines profit. While long established plans will likely not reincorporate, this model has loyalty baked in and big brands should be looking at the types of ways these companies do business

As you are planning your loyalty efforts for 2013, do your best not to get so caught up in the trees that you forget to look at the forest. The seemingly endless number of mobile and social loyalty platforms can be so overwhelming, they can divert even the most savvy of marketers from their core objectives. With the above guides and a constant eye on ROI, 2013 should be a banner year for customer loyalty.

http://adage.com/article/digitalnext/ready-loyalty-marketing-renaissance-2013/236999/?utm_source=daily_email&utm_medium=newsletter&utm_campaign=adage

August 7, 2012

10 Things Apple Won’t Tell You

From customer service to app safety and even how its devices affect our relationships, here are 10 things Apple won’t likely tell you about its products and its business.

By Quentin Fottrell
SmartMoney
August 6, 2012

1.”Our customers are worn out.”

All that initial excitement over the first iPhone or iPad has quickly given way to what analysts are dubbing “upgrade fatigue” — with even Apple’s most loyal customers upset about the steady stream of newer models. In fact, when people buy Apple’s latest product, the company is usually already preparing its replacement, says technology consultant Patchen Barrs, who has owned 25 Apple products over the last 20 years. “Everything we buy from them is already out of date,” he says. Take a count: Since 2001, there have been six iPods, two iPod minis, six iPod Nanos, four iPod Shuffles and four editions of the iPod Touch. Apple has released five iPhone models since 2007 and has had three iPads since 2010.

Of course, newer models have their upsides: They’re usually slimmer, faster and have additional features like better cameras and improved screen quality. And Apple, which declined to comment for this story, has said that such improvements more than justify the fast pace of their new additions. (In March, for example, Apple spokeswoman Trudy Muller said the latest iPad delivered a “stunning” screen display.) But that argument isn’t enough to appease some cash-strapped consumers. Almost 50% of consumers say they’re increasingly unwilling to buy new products for fear that they will be rendered outdated by even newer versions, according to a recent survey of 2,000 people by Marketing Magazine in the U.K.

Click the link to read the entire article which includes a quote from Milton Pedraza, CEO of Luxury Institute: http://www.marketwatch.com/Story/Story/?guid={61E63842-DFED-11E1-961B-002128049AD6}

July 13, 2012

Did Apple Tame the Salesman?

By Quentin Fottrell
SmartMoney
July 12, 2012

Salesmen are going soft. They’re toning down their pitch and ditching the “always be closing” approach. And consumers largely have the Apple Store to thank – or blame.

Industry experts say Apple’s blue-shirted smiling staff is now the envy of other retailers. Best Buy is remaking its “Geek Squad” in Apple’s image, in a pilot program at its Richfield, Minn., location. General Motors plans to institute “no-haggle prices” on some models, which will remove some of the salesman’s role in negotiating a car purchase. “Apple has had a tremendous amount of influence,” says Milton Pedraza, the president of Luxury Institute LLC, a marketing firm.

The floor staff at Apple emphasizes customer service over sales, with new employees taught an APPLE acronym for their “five steps of service,” says Carmine Gallo, a communications coach and author of “The Apple Experience.” (Approach in a warm manner; Probe politely; Present customers with a solution that may not involve a sale; Listen carefully; End with an invitation to return. ) “AT&T retail is closely following these steps,” he says.

Click the link to read the entire article which includes quotes from Milton Pedraza, CEO of Luxury Institute: http://blogs.smartmoney.com/advice/2012/07/12/did-apple-tame-the-salesman/?link=SM_hp_ls4e

June 26, 2012

Social Responsibility Is Nice But Not Worth Paying for in Today’s Economy, According to Wealthy Consumers Surveyed by Luxury Institute

(NEW YORK) June 26, 2012 — In a new survey by the independent and objective New York-based Luxury Institute, “Corporate Social Responsibility: The Wealthy Consumer’s Viewpoint,” U.S. consumers earning at least $150,000 per year define socially responsible corporate behavior, rate companies and divulge importance of socially responsible practices in shaping purchase decisions. Responses were compared to those from the same survey in 2007.

Most (82%) wealthy Americans define social responsibility by a company behaving ethically with employees, customers and suppliers. Environmental behavior and philanthropic actions are both named by respondents as an essential component of CSR (58%).

Almost half (45%) of wealthy consumers say they seek out brands with high ethical standards, but only 39% of these shoppers would be willing to pay a premium. That’s down from 56% who would pay a premium in 2007. Apple, BMW, Coach, Lexus, Mercedes-Benz, Nordstrom, Starbucks and Whole Foods are frequently cited as highly ethical standouts.

Twenty-seven percent of wealthy consumers learn about companies’ socially responsible behavior via Facebook or Twitter. That’s up from 8% who received their information from social media in 2007. Reading news articles is the most popular (52%) way to learn of CSR efforts, down from 64% five years ago.

“Even wealthy consumers have de-emphasized social responsibility as this economy focuses everyone on price/value and away from social issues,” says Luxury Institute CEO Milton Pedraza. “Nevertheless, we see that luxury and premium brands that are socially responsible do better even during recessions because doing well by doing good is a universal and timeless concept.”

Respondents reported average income of $307,000 and average net worth of $3.1 million.

About 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 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 Luxury CRM 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.

November 14, 2011

Lagging Lexus aims at creating exciting, sporty new image

By James R. Healey and Chris Woodyard
USA Today
November 13, 2011

When Toyota was preparing for the 1989 launch of Lexus, the man appointed to birth the luxury brand, J. Davis Illingworth, often said: “We don’t have a single dissatisfied customer.” 

Disingenuous, of course, because the gestating Lexus had no customers at all. But the strongly implied remainder — “… and we intend to keep it that way” — helped raise the bar for luxury car brands.

But now, after phenomenal growth that made Lexus the top-selling luxury auto brand in the U.S. from 2001 through last year, the marque is tumbling. This year, it’s unlikely to finish better than third behind BMW and Mercedes-Benz…

Click the link to read the entire article which includes a quote from Milton Pedraza, CEO of Luxury Institute: http://www.usatoday.com/money/autos/story/2011-11-11/toyota-lexus/51188682/1
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