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Fallon Brainfood: How Customer Service Will Save Luxury

Jeanine Lilke
Jeanine Lilke

Luxury brands have long been the gold standard for customer service. In recent years, shifting consumer attitudes, a tight economy, and the massification of luxury have forced luxury leaders to up their game, establishing new ways to attract, connect, and retain customers. Fallon planners Savanah Brihn and Jeanine Lilke will explore how affluent consumers are placing a higher expectation on the value demanded from luxury brands as well as how luxury leaders are directly responding. Through trend analysis, case studies, and expert interviews, they will demonstrate the values and approaches that will lead luxury (and mass brands) forward. Listeners will take away new approaches to maintain the standards of luxury customer service in a way that fits the values, expectations, and behaviors of today's affluent consumer.

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we are fallon
Fallon Brainfood: Trends, ideas, opportunities, and thought leadership for our brands. Brainfood is: Agency food for thought Past Brainfood topics: The Social 10 // Being Digital // Virtuality // Design for All // Fall0nylitics 2.1 // Mobile 10 // China Rising // and more Upcoming Brainfood topics: Scenarios for the Future of Television // Start-up Mentality // Coupons 2.0 // How to Create Contagious Ideas // and more Previous Brainfoods: Go to http://www.slideshare.net/group/we-are-fallon
Why customer service will save luxury. March 8, 2011
Meet Savanah and Jeanine. Savanah Brihn Jeanine Lilke
And, youll also see two other faces via Skype. Peter Rose Mark Guarino Senior Vice Senior Auto and President Entertainment Analyst
Agenda Three Stages of Luxury Shifts in Consumer and Brand Behavior Examples of Modern Luxury Customer Service
What if I dont work on one of those fancy-schmancy luxury brands? Customer service is becoming increasingly important for all brands. And historically, mass brands adopt the behaviors of luxury brands forcing luxury to continue to raise the bar. So this is your time to learn from the masters and plunder.
Luxury customer service is no longer con鍖ned to one-on-one interactions with sales people Mobile Social Media In-Store Online Experiential
Act I: The Boom
Few were invited to partake.
It was truly a lifestyle with its own social cachet.
The best money could buy.
Made by artisans, not assembly lines.
Sold by experts.
With personalized and attentive service.
Not for Everyone Personalized Service Part of a Larger Story At its core, luxury was Made and Sold by Experts Exquisitely Crafted A Social Experience
Act II: The Fall
Consider your status when traveling.
The saddest thing I can imagine is to get used to luxury. Charlie Chaplin
And that is exactly what we did.
When luxury went corporate, the primary objective changed. From: To: Creating the 鍖nest Making money, things money could buy. lots of money.
Consumers overextended their credit.
Offered entry-level products to reach aspirational customers.
Reduced the quality to turn average pro鍖t margins into luxury margins.
No longer hired experts.
Traded individualism for homogenization.
Holiday Inn Began to expect luxury-style service in non-luxury environments.
Began to expect luxury-style service in non-luxury environments.
This triple threat brought luxury to its knees. 1. Big conglomerates homogenized brands to increase pro鍖ts. 2. Consumers expected a piece of the luxury life. 3. Mass brands incorporated luxury services.
And the recent economic recession certainly didnt help luxury retain its appeal. 38% of consumers reported they reduced the amount of their luxury purchases in the past year Source: Mintel, Consumer Attitudes Toward Luxury Goods, U.S., March 2010.
And the recent economic recession certainly didnt help luxury retain its appeal. In the first half of 2009, worldwide sales of luxury goods fell 20% Source: Bain & Co. Consulting, May 2009.
Act III: The Comeback
In other words, they needed to return to this Not for Everyone Personalized Part of a Larger Story Made and Sold by Experts Exquisitely Crafted A Social Experience
In a way that isnt this
The only way to modernize luxury is through customer service and customer service is bigger than you think it is.
Af鍖uent consumers view customer service as an essential part of luxury. 57% of high-income shoppers identify superior customer service as a defining quality of luxury goods. Source: Luxury Institute, September 2010.
Yet, thats where luxury falls apart. 50% of high-income shoppers have noticed a marked decline in the customer experience. Source: Luxury Institute, September 2010.
Here are some impactful ways to draw on the classic codes of luxury in a modern style.
FROM: Brand validates customers TO: Customers validate brand Burberry: Teamed up with Facebook to create a social networking fashion blog that revolves around the famed Burberry trench.
FROM: Brand validates customers TO: Customers validate brand Burberry: Teamed up with Facebook to create a social networking fashion blog that revolves around the famed Burberry trench.
FROM: Inaccessible to most TO: Accessible to many, but truly rewarding the best Ritz-Carlton: Through collaborations with like-minded partners, Ritz-Carlton awards the best customers with exclusive experiences.
experience. FROM: Personalized one-on-one services TO: Use technology to personalize all service touchpoints Bloomingdales: Engaged shoppers with an interactive and individualized experience.
environment. FROM: Guided discovery TO: Self-directed discovery BMW: Transformed the traditional dealership experience to create a more welcoming environment.
FROM: Guided discovery TO: Self-directed discovery MINI Cooper: Extended the campaign into new markets by offering distinct experiences in the public space.
FROM: Product experts TO: Lifestyle experts Lululemon athletica: Community Ambassadors lead classes and experiences unique to the lululemon lifestyle.
Tiffany & Co.Engagement ring app effortlessly connects mobile to in-store. FROM: Singular customer interactions TO: Seamless customer interactions Tiffany & Co.: Engagement ring app effortlessly connects mobile to in-store.
FROM: TO: Brand validates customers Customer validates brand Accessible to many, Inaccessible to most but truly rewarding the best Use technology to personalize Personalized one-on-one service all service touch points Guided discovery Self-directed discovery Product experts Lifestyle experts Singular customer interactions Seamless customer interactions
Three things we want you to remember about luxury customer service.
1. The old ways of luxury laid the foundation for the modern luxury market.
2. To stand out today, luxury brands must use customer service to reinvent their identity.
3. In order for continued success, luxury needs to out-behave, not just outperform, the competition.
Thank you.

More Related Content

Fallon Brainfood: How Customer Service Will Save Luxury

  • 2. Fallon Brainfood: Trends, ideas, opportunities, and thought leadership for our brands. Brainfood is: Agency food for thought Past Brainfood topics: The Social 10 // Being Digital // Virtuality // Design for All // Fall0nylitics 2.1 // Mobile 10 // China Rising // and more Upcoming Brainfood topics: Scenarios for the Future of Television // Start-up Mentality // Coupons 2.0 // How to Create Contagious Ideas // and more Previous Brainfoods: Go to http://www.slideshare.net/group/we-are-fallon
  • 3. Why customer service will save luxury. March 8, 2011
  • 4. Meet Savanah and Jeanine. Savanah Brihn Jeanine Lilke
  • 5. And, youll also see two other faces via Skype. Peter Rose Mark Guarino Senior Vice Senior Auto and President Entertainment Analyst
  • 6. Agenda Three Stages of Luxury Shifts in Consumer and Brand Behavior Examples of Modern Luxury Customer Service
  • 7. What if I dont work on one of those fancy-schmancy luxury brands? Customer service is becoming increasingly important for all brands. And historically, mass brands adopt the behaviors of luxury brands forcing luxury to continue to raise the bar. So this is your time to learn from the masters and plunder.
  • 8. Luxury customer service is no longer con鍖ned to one-on-one interactions with sales people Mobile Social Media In-Store Online Experiential
  • 9. Act I: The Boom
  • 10. Few were invited to partake.
  • 11. It was truly a lifestyle with its own social cachet.
  • 12. The best money could buy.
  • 13. Made by artisans, not assembly lines.
  • 16. Not for Everyone Personalized Service Part of a Larger Story At its core, luxury was Made and Sold by Experts Exquisitely Crafted A Social Experience
  • 17. Act II: The Fall
  • 18. Consider your status when traveling.
  • 19. The saddest thing I can imagine is to get used to luxury. Charlie Chaplin
  • 20. And that is exactly what we did.
  • 21. When luxury went corporate, the primary objective changed. From: To: Creating the 鍖nest Making money, things money could buy. lots of money.
  • 23. Offered entry-level products to reach aspirational customers.
  • 24. Reduced the quality to turn average pro鍖t margins into luxury margins.
  • 25. No longer hired experts.
  • 26. Traded individualism for homogenization.
  • 27. Holiday Inn Began to expect luxury-style service in non-luxury environments.
  • 28. Began to expect luxury-style service in non-luxury environments.
  • 29. This triple threat brought luxury to its knees. 1. Big conglomerates homogenized brands to increase pro鍖ts. 2. Consumers expected a piece of the luxury life. 3. Mass brands incorporated luxury services.
  • 30. And the recent economic recession certainly didnt help luxury retain its appeal. 38% of consumers reported they reduced the amount of their luxury purchases in the past year Source: Mintel, Consumer Attitudes Toward Luxury Goods, U.S., March 2010.
  • 31. And the recent economic recession certainly didnt help luxury retain its appeal. In the first half of 2009, worldwide sales of luxury goods fell 20% Source: Bain & Co. Consulting, May 2009.
  • 32. Act III: The Comeback
  • 33. In other words, they needed to return to this Not for Everyone Personalized Part of a Larger Story Made and Sold by Experts Exquisitely Crafted A Social Experience
  • 34. In a way that isnt this
  • 35. The only way to modernize luxury is through customer service and customer service is bigger than you think it is.
  • 36. Af鍖uent consumers view customer service as an essential part of luxury. 57% of high-income shoppers identify superior customer service as a defining quality of luxury goods. Source: Luxury Institute, September 2010.
  • 37. Yet, thats where luxury falls apart. 50% of high-income shoppers have noticed a marked decline in the customer experience. Source: Luxury Institute, September 2010.
  • 38. Here are some impactful ways to draw on the classic codes of luxury in a modern style.
  • 39. FROM: Brand validates customers TO: Customers validate brand Burberry: Teamed up with Facebook to create a social networking fashion blog that revolves around the famed Burberry trench.
  • 40. FROM: Brand validates customers TO: Customers validate brand Burberry: Teamed up with Facebook to create a social networking fashion blog that revolves around the famed Burberry trench.
  • 41. FROM: Inaccessible to most TO: Accessible to many, but truly rewarding the best Ritz-Carlton: Through collaborations with like-minded partners, Ritz-Carlton awards the best customers with exclusive experiences.
  • 42. experience. FROM: Personalized one-on-one services TO: Use technology to personalize all service touchpoints Bloomingdales: Engaged shoppers with an interactive and individualized experience.
  • 43. environment. FROM: Guided discovery TO: Self-directed discovery BMW: Transformed the traditional dealership experience to create a more welcoming environment.
  • 44. FROM: Guided discovery TO: Self-directed discovery MINI Cooper: Extended the campaign into new markets by offering distinct experiences in the public space.
  • 45. FROM: Product experts TO: Lifestyle experts Lululemon athletica: Community Ambassadors lead classes and experiences unique to the lululemon lifestyle.
  • 46. Tiffany & Co.Engagement ring app effortlessly connects mobile to in-store. FROM: Singular customer interactions TO: Seamless customer interactions Tiffany & Co.: Engagement ring app effortlessly connects mobile to in-store.
  • 47. FROM: TO: Brand validates customers Customer validates brand Accessible to many, Inaccessible to most but truly rewarding the best Use technology to personalize Personalized one-on-one service all service touch points Guided discovery Self-directed discovery Product experts Lifestyle experts Singular customer interactions Seamless customer interactions
  • 48. Three things we want you to remember about luxury customer service.
  • 49. 1. The old ways of luxury laid the foundation for the modern luxury market.
  • 50. 2. To stand out today, luxury brands must use customer service to reinvent their identity.
  • 51. 3. In order for continued success, luxury needs to out-behave, not just outperform, the competition.