Retail is separating into two camps: high priced luxury brands that give high-touch, personalized service and no-touch, stack-it-high-and-let-it-fly discounters.
Discounters are seen as no-frills, no service stores where customers only returnfor a cheap price, not for the quality, not for a relationship, and not for the experience.
The luxury brands do it better… or so you’d think.
In a recent press release, the Luxury Institute shared some startling facts:
Most luxury brands lose 80-90% of customers in any given year.
Those same brands are deficient in retaining even 50% of their top customers.
Only 10-15 % of a luxury brand's customers state that they have a relationship with a sales professional (brand ambassador) and can name that person.
Again, customer attrition rates in the luxury industry are at an astronomical 80-90 %.
Contrast those findings with the upside in the premium market, “Customers who have a true human relationship with a brand ambassador typically buy double from that brand and stay loyal for a longer period of time.”
Yet we have proof a lot of very important customers slip through premium brands’ hands every year, every month, every day – every hour. Why is that?
As I’ve said before, luxury retail is ready for a reboot – BIG TIME! The 1950’s sales practice of intimidation, feigned indifference and servitude aren’t going to deliver anything but a silent store in 2015.
Everyone agrees up until a few months ago, luxury spending had been strong, but how much more could they have gotten if they'd changed their sales training?
Customers now know an awful lot about any product they are considering - your 4 c's aren't cutting edge, they're known.
Selling is not just an anyone pulling out a calculator and figuring the discount they can give the customer.
Selling is selling the merchandise by selling themselves first.
Especially at the top end.
Since many miss on this, it isn’t that surprising we find the odds are 90% of customers not coming back because the salesperson hasn’t made the relationship personal and they’ve lost the key to the customer’s wallet. It isn't more product knowledge they need, it's retail sales training.
How to sell luxury retail :
1. Have A Treasure Trove
Your salespeople must have a million ways to develop trust and sell your product. The one-size-fits-all approach that might work for someone working in a department store will not work when selling non-essential goods. Customers who purchase the best brands have stronger personalities, are self-assured and are just like the most exclusive luxury goods - no two are ever alike.
2. Have Four Versions of Stories
Yes stories and product details are what make your luxury goods unique, but the four personalities demand that the story be shaped to their individual styles. That means cut it down so Drivers quickly see why it’s the best, stretch it out with reams of information so Analyticals know how it’s the best. Expressives want you to explain its uniqueness, and Amiables want to know how popular it is and which celebrities have endorsed it.
3. Address Smartphones
Luxury customers are busy with multiple demands on their time, even when they’re shopping. This is where your intuition, personality style training and patience have to kick in. While a coffeehouse can put up a sign, “Please finish your call before ordering,” you can’t, so come up with a way to deal with the probable interruptions. Even though every interaction/interruption will be different and there will be no one “right” answer, you must discuss these situations with your crew using past experiences as material for role playing. Otherwise, their hurt feelings might kill the sale.
4. Know All The Brands
Whether you sell cars or cashmere, the new luxury buyer is a player; their connections, brains, talent or looks got them their money. Salespeople must notice the brands that these customers are already wearing, from the Jimmy Choo shoes on their girlfriend’s feet to the Omega Seamaster watch on his wrist. Premium customers appreciate talking to people who know the difference in feel, in smell, in taste and in service. If they don’t sense this shared appreciation, those customers won’t respect any advice or goodwill-building the employee has to offer. They’ll remain nameless.
Goodwill building is what is typically missing in many retailers. That’s why increasingly premium brands are turning to me to help them upgrade and reboot their customer experience.
If you are a such a brand, contact me and let me help you using my retail sales training program to create exceptional experiences for your customers like I've done with many premium brands, so you can keep your customers returning.