By Margo Locust
Early in my career as a retailer my mentor Sonna Calandrino told me: “Revenue follows relationships. Build good relationships, and the rest will follow.” That being the case, building relationships can lead to luxury sales. Here’s how:
1. Understanding the customer
The sales approach for one customer is not going to be the same for the next. Retailers need to take note on the individuality of each customer, and create a cognitive empathy.
2. Customer service
When a customer walks in, what’s the first step? A quick response.
If we aren’t available, the customer will find someone else to talk to. I once drove 40 miles with every gray sample of laminate, luxury vinyl plank (LVP) and engineered wood I had, because a customer had $6,000 to spend. I met him in a parking lot and showed him the samples. He chose LVP with a cork backing, you know, “laminated wood!”
3. Provide Information to the “already informed” customer
Today’s customer is armed with information when they show up, but online research or discussions with misinformed friends can cause confusion. As retailers, we have to acknowledge their research and concerns, and then tell them “Pergo” is not a flooring type, it’s a brand name.
4. Brand power & luxury sales
Now, when customers expect so much and have a large selection of products and price ranges to choose from, brands need to work harder.
Luxury products offer the promise of quality, expertly crafted from the finest materials. To make luxury sales, retailers must engage customers on personal levels.
Many Millennials are not brand conscious, but focused on warranties, sustainability and the “looks” that create the vibe or the experience.
According to Milton Pedraza, CEO of the Luxury Institute, and based on data from Marketing Metrics:
--Only 10 percent of customers will revisit a brand after an initial visit and only 27 percent will return to the physical store where customer relationships primarily develop.
--Repeat customers have a 60 percent to 70 percent chance of making another purchase on a future visit.
--Penalties for a poor initial interaction are severe, with 72 percent of shoppers in an Accenture survey refusing to give a brand a second chance after a negative experience.
--Eighty percent of those who were displeased, felt the retailer could have done something to keep them.
Salespeople must be able to create a unique, engaging, positive experience tailored to the customer if they want repeat business. Success in high-end sales depends upon the salesperson to convert potential buyers into satisfied customers who become a valuable source of customer retention and new referrals. For our customers, the concept of “luxury” is changing as brands begin to make themselves more accessible.
Margo Locust is publisher of Fabulous Floors Magazine and owner of a retail store in North Carolina with more than 30 years in the flooring industry. She can be reached by email at margo@fabulousfloorsmag.com.