Luxury Institute News

February 5, 2013

Wealthy Customers Sing Praises of Shopping Experiences at Bergdorf, Nordstrom and Barneys

Posted in Customer Experience,LCEI,Luxury Brands,Press Releases,Retail,Wealthy Consumer
Tags: Barneys, Bergdorf Goodman, Customer Experience, Luxury Market, Milton Pedraza, Neiman Marcus, Nordstrom —

(NEW YORK) February 05, 2013 – U.S. shoppers earning at least $150,000 a year share detailed opinions and evaluations of seven leading luxury retailers in the 2013 Luxury Consumer Experience Index (LCEI) conducted by the independent and objective New York-based Luxury Institute. Based on an average of seven customer experience components rated on a 1-10 scale, Bergdorf Goodman (8.58) ranks first, but wealthy consumers are far more likely to shop at second-place Nordstrom (8.36).

Visited by 34% of wealthy shoppers in the past 12 months, Nordstrom is the most popular luxury retail chain, and it is also most likely (92%) to be recommended favorably to family and friends. The affluent shoppers who have visited Bergdorf Goodman’s two stores in the past 12 months rave about it, ranking it first on six of seven experience criteria, including having polite, trustworthy, knowledgeable and enthusiastic employees, as well as stores that are appealing and well maintained. Bergdorf’s parent, Neiman Marcus, ranks first for being the retailer that high-income shoppers say, “completely satisfies my needs.”

Despite the high praise for its people and its stores, wealthy shoppers perceive Bergdorf’s merchandise as a bit too pricey, ranking it last (63%) on the question of whether its products are worth premium prices. Barneys New York ranks first (85%) for deserving premium pricing.

“Bergdorf Goodman retains the cachet of a classic boutique that delivers outstanding experiences,” says Luxury Institute CEO Milton Pedraza. “On a larger scale, Nordstrom deserves credit for replicating great experiences with a customer centric culture across its entire network of stores.”

Wealthy shoppers also evaluated Saks Fifth Avenue, Burberry, Bloomingdale’s and Brooks Brothers.

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.

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October 11, 2012

Ultra-Wealthy Shoppers Spend More On Luxury Where They Maintain Personal Relationships; Pentamillionaires most likely to be close with specific sales professionals at Barneys, Bergdorf Goodman

(NEW YORK) October 11, 2012 – U.S. consumers with at least $5 million in assets and $200,000 in annual income share detailed opinions and observations about their relationships with salespeople in six luxury categories in the new 2012 Luxury Customer Relationship Index survey from the independent and objective New York-based Luxury Institute.

High-ticket categories show higher rates of customers who deal with a specific salesperson. Watches (49%) lead all categories in terms of proportion of customers who maintain relationships with salespeople, followed by jewelry (40%) and men’s ready-to-wear (38%). There is a noticeable drop-off in rates of personal relationships at luxury retailers (30%), handbag brands (27%) and women’s ready-to-wear (21%).

Across categories, 70% of ultra-wealthy customers who transact and communicate with a specific salesperson say that this relationship causes them to spend more on goods and services in stores and on the Web. The biggest positive impact on sales comes when customers maintain relationships with salespeople in luxury retail, and in both men’s and women’s ready-to-wear categories.

In luxury retail, Bergdorf Goodman (51%) and Barneys (49%) enjoy the highest rates of maintaining relationships with ultra-wealthy customers, with larger chains like Bloomingdale’s and Nordstrom seeing lower incidence of relationships. In the middle are Brooks Brothers (36%), Neiman Marcus (32%), Lord & Taylor (30%), and Saks (26%).

“Luxury retailers know that relationships drive sales,” says Luxury Institute CEO Milton Pedraza. “The right hiring, education programs and Customer Culture help to promote more productive relationships and higher sales.”

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 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.

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May 9, 2012

Nordstrom Tops Luxe Experience Index

Posted in Customer Experience,LCEI,Wealthy Consumer
Tags: Barneys New York, Bergdorf Goodman, Milton Pedraza, Nordstrom —

By Evan Clark
WWD
May 8, 2012

Nordstrom Inc.’s intense focus on customer service seems to be paying off.

The Seattle-based retailer ranked highest in the Luxury Institute’s 2012 Luxury Consumer Experience Index, a survey that tracks U.S. shoppers earning at least $150,000 a year and takes into account a retailer’s store personnel, shopping experience and the consumer’s overall satisfaction…

Click the link to read the entire article (subscription required): http://www.wwd.com/retail-news/department-stores/nordstrom-tops-luxe-experience-index-5899721?src=nl/mornReport/2012050

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May 8, 2012

Nordstrom Ranks First in Luxury for Wealthy Shoppers; High-End Retailer Earns Top Scores on Multiple Measures of Customer Experience and Loyalty

Posted in Customer Experience,LCEI,Press Releases,Retail,Wealthy Consumer
Tags: Barneys New York, Bergdorf Goodman, Nordstrom —

(NEW YORK) May 8, 2012 — Wealthy U.S. shoppers earning at least $150,000 a year rank Nordstrom highest among luxury retailers in the 2012 Luxury Consumer Experience Index (LCEI) survey by the independent and objective New York-based Luxury Institute. LCEI scores are based on customers’ evaluations of a brand’s store personnel, shopping environment and degree of satisfaction with the total experience.

Nordstrom earns the top overall score of 8.41 out of 10, followed by Neiman Marcus’ Bergdorf Goodman subsidiary (8.37), and Barneys New York (8.23). It is also the most widely visited luxury retailer, with 36% of wealthy consumers reporting shopping at Nordstrom in the past 12 months.

Only 7% of shoppers have visited Barneys, and 6% have shopped at Bergdorf Goodman, but exclusivity helps with pricing: 76% of Bergdorf’s shoppers and 74% of Barneys’ say that goods in those stores are worth a significant price premium; 65% say the same about Nordstrom’s merchandise.

“Retailers, especially in luxury, are selling experiences to customers more than they are selling any particular good,” says Luxury Institute CEO Milton Pedraza. “In the case of a retailer like Nordstrom, we see that a program of continuous improvement in the customer experience can lead to higher degrees of loyalty and improved financial performance.”

In addition to its top overall LCEI score, Seattle-based Nordstrom ranks first on two critical measures of customer loyalty: 96% of high-income shoppers plan to shop at Nordstrom again, and 94% recommend Nordstrom to family and close friends.

Survey participants reported average income of $292,000 and average net worth of $3 million.

About the Luxury Institute ( www.LuxuryInstitute.com )

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July 7, 2011

Wealthy Online Shoppers Rank Top Luxury Retailer Websites; Nordstrom Is Most Visited While Barneys, Bergdorf and Brooks Brothers Tie For First Place Along With Net-A-Porter

Posted in Customer Service/CRM,E-Commerce,Fashion,Internet/Web,LOCEI,Luxury Market,Press Releases,Retail
Tags: Barneys New York, Bergdorf Goodman, Brooks Brothers, Milton Pedraza, Net-A-Porter, Nordstrom —

(NEW YORK) July 7, 2011 – Wealthy shoppers earning at least $150,000 a year weigh in on their most and least favorite luxury retail websites in the 2011 Luxury Online Customer Experience Index survey conducted by the independent and objective New York City-based Luxury Institute.

Affluent consumers rated sites based on visual appeal, navigability, product selection, use of images and text in helping them better understand product features, security of personal data, ease of purchasing and access to customer service. They also indicated how likely they were to return to the site and to recommend it to family and friends.

Based on 1-100 composite scores, the top-ranked luxury sites are those of Barneys, Bergdorf Goodman, Brooks Brothers and Richemont’s Net-A-Porter, each earning a score of 81. Nordstrom has the most frequently visited site, with 23% of respondents visiting Nordstrom.com in the past 12 months.

Wealthy shoppers considered a total of 16 retail sites:

Traditional Retailers:
-Barneys New York
-Bergdorf Goodman
-Bloomingdale’s
-Brooks Brothers
-Lord & Taylor
-Neiman Marcus
-Nordstrom
-Saks Fifth Avenue

Online Only:
-Bluefly
-eBay Fashion Vault
-Gilt Groupe
-HauteLook
-Ideeli
-Net-A-Porter
-Rue La La
-Shopbop

“Except for Net-A-Porter, key luxury multi-channel retailers significantly outperformed the pure online players, with the flash luxury sites being rated in the bottom tier,” says Luxury Institute CEO Milton Pedraza. “Although the pure online players are growing fast, it is becoming a commoditized product space where the only thing that matters will be long-term customer experiences as evidenced by high customer retention scores and increasing average spending. Net-A-Porter proves that it takes far more than content and algorithms to create lasting customer relationships. Online players should borrow a page from the Zappos playbook and create customer-centric cultures that Outbehave the competition. Customer-centricity is the sweet spot of success in the 21^st century.”

For greater details about wealthy customer preferences on all criteria for each of the 16 online luxury retailers, please contact Martin Swanson.

About Luxury Institute (www.LuxuryInstitute.com)

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

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May 2, 2011

Is Twitter an effective traffic driver to luxury stores?

Posted in Luxury Market,Marketing,Mobile Commerce,Social Media
Tags: Bergdorf Goodman, Bloomingdale's, Bluefly, Four Seasons, Milton Pedraza, Stella McCartney, Twitter —

By Rachel Lamb
Luxury Daily
April 29, 2011

Twitter is often used as a forum where brands can communicate with consumers to inform them of special deals, in-store events and online exclusives. But does it actually do its job - drive sales to retail and online locations?

Brands, retailers and hotels such as Bloomingdale’s, Stella McCartney, Bluefly, Bergdorf Goodman and Four Seasons are actively tweeting messages that drive in-store or online conversions, which is the main reason these companies even use the social media site. The messages are short and to the point, with all signs pointing to sales.

“When we talk to luxury consumers, they consider Twitter the second-most prominent social media channel for them, aside from Facebook,” said Milton Pedraza, CEO of the Luxury Institute, New York.

“I think that consumers see a lot of a service or an opportunity to report to a brand and get an immediate response,” he said. “They usually don’t use it to get main brand information, but it’s a great source for product referral and product feedback, both to and from the brand and consumer.”

Twitter
Some brands find that Twitter is the easiest way to link to products on Web sites or to tell their customers about online-only finds.

For instance, Bluefly, an online retailer of discount designer accessories and apparel, enthusiastically tweeted about a must-have bag available on the commerce-enabled Web site.

An excited, cheery tweet could act as the fire lit under the customer that is on the edge of buying an item.

“The nature of Twitter is relevant and instant,” Mr. Pedraza said. “In that sense, it has its uses.

“It is not a place where you’re going send a lot of product information, but you will get influenced on a transaction, purchase, referral or review very quickly and that’s what the greatest use is going to be over time,” he said.

Meanwhile, Four Seasons uses Twitter to communicate to its customers about upcoming events.

To promote its Mother’s Day package, the hotel is encouraging its customers to look at details and possibly snag the deal.

By hitting a sweet spot for many consumers – humor and, of course, their mothers – Four Seasons succeeds in hooking potential guests.

Also, this could just be the brand’s way of reminding customers who could have forgotten about the package.

Either way, the possibility of money spent at the hotel or on its site is great.

Luxury brands that tweet can also benefit from consumers who check their Twitter accounts via smartphone.

If an on-the-go affluent consumer happened upon a Stella McCartney tweet encouraging her to shop the new collection, the brand could benefit from a last-minute mobile purchase.

This is also where having a mobile-optimized site comes in handy for easy access of products, which will lead to buying.

Bricks click
Brands can also use Twitter to send customers to retail locations.

Retailers such as Bloomingdale’s and Bergdorf Goodman use the social network to alert customers about in-store events.

Bloomingdale’s woos Miami-based consumers with free makeup lessons from an executive at a popular brand, based on a recent tweet.

New York-based department store Bergdorf Goodman takes it a step further with an embedded image that shows products in the store.

The retailer also tweeted about an in-store event featuring these bags beforehand, further encouraging consumers to come to the store, shop and possibly meet a fashion industry icon.

This is appealing to the affluent consumer because Twitter is a personal experience, especially if a customer is directly messaged, is re-tweeted or mentioned by the brand.

Connecting personally with a brand will encourage loyalty in all mediums.

“Twitter allows the brand to communicate on a more personal level with the consumer, as well as to provide up-to-the-minute brand news,” said Isabella Josefsberg, community manager at Spring Creek Group, Seattle.

“Twitter can be used by brands to solidify the brand personality and reputation, as well as to help consumers connect with the brand,” she said. “Twitter also allows consumers who are fans of the brand, but may not necessarily have the means to purchase luxury items, to participate in the brand experience.”

http://www.luxurydaily.com/is-twitter-an-effective-traffic-driver-to-luxury-stores/

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April 1, 2011

Hermes, Brioni and Versace rank highest in reputation, prestige: Luxury Institute

Posted in LBSI,Luxury Market,Retail
Tags: Bergdorf Goodman, Brioni, Chanel, Christian Louboutin, Hermès, Louis Vuitton, Milton Pedraza, Nordstrom, Valentino, Versace —

By Elizabeth Zelesny
Luxury Daily
March 31, 2011

A study by the Luxury Institute found that Hermes, Brioni and Versace rank highest in reputation and prestige compared with other luxury brands.

Respondents ranked each luxury brand on worthiness of a significant price premium, their willingness to recommend it to friends and family and the likelihood of consideration the next time they make a purchase. This was the key finding of the report titled “2011 Luxury Brand Status Index.”

“One key finding is that the classic brands have remained strong,” said Milton Pedraza, CEO of the Luxury Institute, New York. “You can see that these brands are not only classic luxury brands, but large.

“With size, you can survive and thrive during a recession,” he said. “What I would emphasize is that the biggest and best got stronger during the recession.”

The Luxury Institute is a New York-based ratings and research organization.

Hey, big spender

Survey participants comprised a balance of men and women from households earning $150,000 or more with an average income of $271,000 and an average net worth of $2.4 million.

Participants evaluated dozens of luxury fashion and footwear designers on quality, exclusivity, status enhancement and the ability to create special shopping and owning experiences.

Independent French luxury house Hermés earned the top ranking in the women’s category among five luxury retailers in the survey of wealthy shoppers.

Prada received the second-highest ranking in the luxury brand status index for women, according to the Luxury Institute, with Louis Vuitton coming in third.

In the men’s fashion sector, Brioni earned the top ranking in the survey, with Salvatore Ferragamo coming in second and Ermenegildo Zegna finishing third.

Versace, Christian Louboutin and Valentino were ranked the top three luxury brands in the women’s footwear category.

“Brands need to have incredibly long product lines, classic and contemporary,” Mr. Pedraza said. “These brands have both.

“All of these brands have a strong focus and a reasonable level of service, especially for the ultra-wealthy clients,” he said. “One surprise is that Chanel wasn’t in the top three, or even the top five.”

Experience for a lifetime

Mr. Pedraza said luxury brands need to focus and improve their customer experience.

The Luxury Institute recently conducted a study that found that Bergdorf Goodman and Nordstrom score far better than other retailers at having a top-notch overall shopping and customer service experience for their affluent consumers.

Moreover, the Luxury Institute found that Burberry and Bottega Veneta excel at having enthusiastic brand ambassadors in their stores who are interested in helping customers.

Mr. Pedraza said luxury brands must focus on creating loyal clients, especially the young affluent consumers who may not be able to afford luxury products now, but possibly could in the near future.

“That is the Achilles’ heel of many brands,” Mr. Pedraza said. “How they are going to create lasting relationships with up-and-coming consumers.

“Luxury brands need to make sure the up-and-coming tiers of younger consumers become loyal clients in the future,” he said.

http://www.luxurydaily.com/hermes-brioni-and-versace-rank-highest-in-reputation-and-prestige-luxury-institute/

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March 10, 2011

Consumers: We want Gucci or Target. Forget the Gap

Posted in Fashion,Luxury Market,Retail
Tags: American Express Business Insights, Barneys, Bergdorf Goodman, Burberry, Gap, Gilt Groupe, Gucci, Louis Vuitton, Luxury Market, Macy's, Milton Pedraza, Nordstrom, Saks, Target, TJ Maxx —

By Jessica Dickler
CNNMoney
March 9, 2011

NEW YORK (CNNMoney) — Consumers are ready for a little luxury. Despite cutting back in other areas, such as dining, they are showing a clear preference for select high-end apparel brands, such as Gucci, Louis Vuitton and Burberry.

After taking a hit at the height of the recession, sales of luxury goods have rebounded strongly, up 10%-12% last year in the U.S., according to estimates by Telsey Advisory Group, a retail equity research firm. Comparatively, retail sales across the board rose just 6%.

“People are willing to pay a premium on something that delivers on luxury,” noted Milton Pedraza, the CEO of the Luxury Institute, which tracks spending among wealthy consumers with a minimum annual income of $150,000. “They will buy fewer but more expensive things. There’s a lot more value consciousness.”

But with an eye on value, shoppers are also hunting down designer brands at steep discounts, frequenting stores such TJ Maxx and online sale sites such as Gilt Groupe.

Ed Jay, senior vice president of American Express Business Insights, calls this “the barbell effect.”

Who’s buying homes? The rich

“They are more high and low in the way that they are spending,” Jay said of today’s consumers. “High-end brands are holding ground among consumers, while spending at value oriented stores has also been pretty stable. It’s a tough place for mid-tier right now,” he said, referring to retailers like the Gap, Chico’s and Ann Taylor.

Susan Towers, who owns her own design business in New York, admits she shops high and low, but nothing in between.

“I shop at Barney’s and Bergdorf’s and take a walk through Loehmann’s every so often,” she said. Lately she says it’s more Loehmann’s and less Barney’s, but still “I’ve never really believed in buying mid-priced stuff.”

She has had to make sacrifices to afford Barney’s, though, because she makes about half of what she used to bring in before the recession. “I had to cut back, eat out less, take less vacations, things like that,” Towers explained.

Part-time French teacher Geraldine Trippitelli also says she would rather have one luxury item, which she pairs with other much less expensive clothing, than more mid-range brands.

“I prefer one Chanel jacket with cheap jeans and T-shirt, but just one, and then I have to be careful for a long time,” said Trippitelli, who shops either in high-end boutiques in New York or discounters like TJ Maxx and Target.

And other shoppers seem to be following suit. Overall luxury fashion spending is up 35% in the past year, while mainstream fashion spending gained just 8% since last year, according to the most recent data by American Express Business Insights, which tracks the spending habits of its 90 million cardholders.

And while high-end department stores like Nordstrom and Saks have rebounded strongly from the recession, more middle-of-the-road shops, such as Macy’s and JC Penney, have struggled to gain ground.

Same-store sales, an important barometer in retail, rose 5.8% at Macy’s and 5% at Kohl’s in February, while Nordstrom jumped 7.3% and Saks was a whopping 15.3% higher. The Gap and Banana Republic both had same-store sales below where they were a year ago.

Part of this trend, explained Robert W. Baird & Co. retail analyst Erika Maschmeyer, is the shift in focus to quality rather than quantity during the recession. “People got used to a different standard of living in the boom area and once you’ve traded up, it’s hard to shift back down,” she said.

Still, as the economy improves and consumer confidence continues to increase, Maschmeyer predicts even those mid-level stores will eventually see stronger sales. “I wouldn’t bet against the American consumer; we like to spend money,” she said.

http://money.cnn.com/2011/03/09/pf/consumers_prefer_luxury/

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March 1, 2011

Wealthy U.S. Consumers Rate Bergdorf Goodman Customer Experience Best in Luxury Retail; Nordstrom Excels in Loyalty, Brooks Brothers in Total Satisfaction

Posted in LCEI,Luxury Market,Press Releases
Tags: Bergdorf Goodman, Brooks Brothers, Milton Pedraza, Neiman Marcus, Nordstrom —

(NEW YORK) March 1, 2011 – For the second consecutive year, Neiman Marcus’ Bergdorf Goodman subsidiary earns the top ranking among eight luxury retailers in the 2011 Luxury Consumer Experience Index (LCEI) survey of wealthy shoppers conducted by the independent and objective New York-based Luxury Institute. Respondents rated retailers on store personnel, the shopping environment and whether the overall experience resulted in complete satisfaction.

Brooks Brothers earns the second highest overall LCEI score but ranks first for completely meeting wealthy customers’ needs. Nordstrom receives the third highest LCEI score, and remains the most popular luxury shopping destination, visited by 38% of wealthy shoppers in the past 12 months. It is also earns the highest loyalty, with 98% of shoppers planning to come back.

“The top-tier brands of luxury with resources are now focused on becoming customer-centric global enterprises,” says Milton Pedraza, CEO of the Luxury Institute. “The only way to achieve this is to create establish a self-reinforcing culture of service to your associates and your customers. The work is extremely hard but the financial returns can be dramatic.”

Survey participants had minimum household income of $150,000, with average income of $271,000 and average net worth of $2.4 million.

About the Luxury Institute (www.LuxuryInstitute.com)

For Further Information, Please Contact:
The Luxury Institute, LLC
Martin Swanson
Vice President
(914) 909-6350
mswanson@luxuryinstitute.com

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December 23, 2010

Luxury brands approaching revolutionary CRM innovations: expert

Posted in Customer Service/CRM,Luxury Market,Marketing
Tags: Bergdorf Goodman, Milton Pedraza —

By Peter Finocchiaro
Luxury Daily
December 22, 2010

Customer relationship marketing technology is nearing a point where prestige brands will be able to administer a quality of service that delivers on the promise of luxury in ways never before possible.

Luxury brands already emphasize CRM as key to maintaining lifelong relationships with consumers, keeping records on buys and preferences and reaching out with special offers for frequent shoppers. However, database analytics will soon render hyper-precise recommendations in real-time.

“Brands have a ways to go before they optimize the collection of data,” said Milton Pedraza, CEO of the Luxury Institute, New York. “They aren’t empowering the sales force or online experience with real-time data that gives the customer something special.

“That’s the next phase, where you walk into the store, I get your name, dial it into an iPhone and it immediately comes it with information that is relevant to the interaction I’m about to have,” he said. “I think it’s a two- or three-year target.

“But, the good news is that luxury brands are looking to innovate in the space and not just copy others.”

Premium on personalization
Luxury consumers define the value of the brand experience in terms of multiple factors, quality and service chief among them.

The degree of personalization shoppers expect from a brand is oftentimes a barometer for their value to the brand, as it drives loyalty and repeat purchases, according to Greg Furman, founder and president of the Luxury Marketing Council, New York.

“Luxury consumers define value as greater personalization, meaning they want to be better known by the store” he said. “They want to see evidence that the store or brand understands who they are and what their buying patterns are.

“They don’t want mass emails that have nothing to do with them,” he said. “The consumer is looking for evidence that they are known in a sophisticated way by the stores, because they are their best customers.”

Marketers frequently use customer data to send out targeted direct mail materials and email communications to hit consumers with more relevant offers based on the target’s history.

Certain brands such as Bergdorf Goodman are already adept at such offers, Mr. Furman said.

“I think what Bergdorf found, at a time when other brands were discounting helter-skelter, was rather than lop off a certain percentage of an item’s cost, was that it was better to offer time-limited and very specific offers to select customers based on their historical purchases,” Mr. Furman said.

In particular, such CRM strategies could be particularly effective for retailers in terms of cross- or up-selling items to customers.

For example, Bergdorf could send offers to loyal customers who have purchased within certain categories of items and offer discounts on complementary goods when shopping at a retail location within a certain timeframe.

A frequent customer who wears Chanel evening wear but never bought Chanel purses might receive an offer to buy a discounted bag within ten days.

Mr. Furman said that not all luxury brands engage in such practices currently, but that all should aspire to them.

“These tactics limit exposure to the offer and in cross-selling and up-selling into other categories than where the customer has entered,” Mr. Furman said.

“It shows the best customers that you understand their buying history,” he said. “And, it incentivizes them to transfer brand loyalty on to you, move into other categories and expand their portfolio in your store.”

Innovations approach
While such offers already offer substantial upside to luxury marketers, new technologies will revolutionize the luxury sales experience, according to the Luxury Institute’s Mr. Pedraza.

First, database analysis is getting to the point where marketers can get a more accurate idea of consumer preferences than ever before, tracking behavior across channels and synthesizing the information to render more complete behavioral pictures.

Additionally, the technology will likely be able to deliver analysis and recommendations in real-time.

Finally, mobile has progressed to a point where retailers can empower salespeople to access consumer data and analysis in real-time via a dashboard application.

Salespeople would be empowered to deliver recommendations based on preferences and buying history on the spot.

Such a system could provide retailers with metrics to track performance and progress.

“Each salesperson would know daily, weekly and monthly how many customers they captured,” Mr. Pedraza said.

“They would know how many they up-sold and cross-sold and what they bought, how much data they collected and email addresses they added, how many old customers and how many new, how many people to call because three days ago you sold them something,” he said.

“All of those things would be on a dashboard that sales personnel can use to measure themselves to take action – meaning actionable insights in real-time via CRM.”

http://www.luxurydaily.com/luxury-brands-approaching-revolutionary-crm-innovations-expert/

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