The Myth of Luxury Businesses' Training Priority (Part I)

I recently had a coffee meeting with the General Manager of a luxury retail brand. Our conversation focused on the training priorities of the Client-Facing team in the current challenging macroeconomy, to build instant rapport with the luxury consumers.

From the General Manager's perspective, investing in offering luxury lifestyle exposure to the retail team, such as Michelin-starred restaurant dining and wine-tasting experiences, is how Client Advisors learn about building rapport with luxury customers.

The myth is that luxury customers look for Client Advisors with similar lifestyle exposures.

In the last two decades, I have cultivated relationships with HNWIs worldwide, and I often ask their opinions on what they are looking for from the Client-Facing team. Are you ready to hear their answers? Here are some quoted responses:

"It is a bonus if the Client Advisors have interesting exposure and knowledge of luxury lifestyles; but first and foremost, they need to know their brands well and be able to personalise the recommendations that suit me."

"I want to be looked after by someone genuinely interested in what I am looking for."

"I expect impeccable service in the luxury industry; client Advisors who can anticipate my needs are gold."

"I value someone in it for the long run, not pressuring me for immediate sales."

From the numerous luxury audits I conducted and my personal experience as a luxury client, 99% of luxury businesses have not yet perfected the two basics of luxury clienteling:

Number one:  Building instant connections that drive conversion.

Number two: Cultivating relationships that foster repeat business. 

Let me share some insights on point number one  "How to build instant connections" with you today:

Your Client Facing Team 𝗛𝗮𝘃𝗲 𝗦𝗲𝘃𝗲𝗻 𝗦𝗲𝗰𝗼𝗻𝗱𝘀 𝘁𝗼 𝗠𝗮𝗸𝗲 𝗮 𝗚𝗿𝗲𝗮𝘁 𝗙𝗶𝗿𝘀𝘁 𝗜𝗺𝗽𝗿𝗲𝘀𝘀𝗶𝗼𝗻

We all know the power of first impressions. However, you may not know how little time your Client-Facing team has to make one.

Within the first seven seconds of engagement, customers will form an impression of who you are and determine whether they trust you.

In a retail context, instantly recognising and adapting to a customer's preferred communication style is a game-changer. It's about making a good impression, building instant rapport and increasing conversion rates.

The six main types of preferred communication that people have are as follows:

💡 30% are more comfortable to speak with feelings and warmth.

💡 25% resonate with facts, data and logic.

💡 20% see the humour in things and enjoy being in the present.

💡 10% are inclined to give opinions, beliefs and judgments.

💡 10% prefer to be left alone and have their space respected.

💡 5% are naturally charming, firm and direct.

Being able to spot your luxury client's preferred communication channel instantly and respond in the same channel is ultimately crucial to building instant connection and trust.

The most essential traits luxury customers look for are summarised in a SPCV model:

𝗦 - 𝗦𝗶𝗻𝗰𝗲𝗿𝗶𝘁𝘆 refers to honesty, openness, and genuineness in interactions. Clients in the luxury market seek genuine connections and want to feel valued as individuals, not just as sources of revenue.

𝗣 - 𝗣𝗿𝗲𝘀𝗲𝗻𝗰𝗲: This involves being fully engaged and attentive at the moment, actively listening to the customers, showing genuine interest in their thoughts, unique needs and preferences, and making customers feel seen.

𝗖 - 𝗖𝘂𝗿𝗶𝗼𝘀𝗶𝘁𝘆: It refers to the genuine desire to learn more about the customers, such as their interests, aspirations, and lifestyle preferences, to provide personalised and relevant product recommendations.

𝗩 - 𝗩𝗲𝗿𝘀𝗮𝘁𝗶𝗹𝗶𝘁𝘆: It involves adapting one's communication style and approach to different clients, situations, and contexts. In the luxury industry, versatility is crucial, as clients have varying expectations and preferences in their luxury purchases—some look for speed and efficiency, and others seek recognition and companionship, to name a few.

In next week's newsletter, I will share more context on the two other key components of clienteling - how to cultivate and nurture relationships for your repeat business.