Retail analyst Lori Monaco shares some surprising ways to win over high-end consumers
What does it take for retailers to woo today’s luxury shopper? Glancing the upper tier of Maslow’s Hierarchy of Needs is a good start, says Lori Monaco, president, Fashion Footwear, Accessories & Luxury, at market research firm The NPD Group.
Famed psychologist Abraham Maslow’s iconic five-tiered motivational theory of human needs places “esteem” at the top of the metaphorical pyramid.
But digging deeper to get at what’s actually driving humans’—and consumers’—craving for esteem can unlock the buying triggers of luxury shoppers.
Here, Monaco explains how empathy—of all things—plus technology-enabled convenience and good old-fashioned follow-through are key to the modern-day courtship of high-end consumers.
TIP #1
Forge an Empathetic Connection
Understanding why your consumer shops and how they prefer to be interacted with is key to engaging and connecting with them.
MAKE THE CONNECTION:
Do we really need that new designer handbag or pair of sunglasses? On Maslow’s Hierarchy of Needs, none of these items meets any of our basic needs for survival or sustenance, of course, but they do reach all the way up the pyramid—and our need for esteem rings the bell.
Our deep psychological need to feel accomplished and having arrived at a place in our lives drives us to luxury products and services. Being honest about the underpinning for these needs—to be loved and desired, to stand out from the crowd and/or be part of a community, to feel secure, to engage our senses, and to have fun—these are the first steps to developing an empathetic connection with your customer.
It’s the reason that authenticity has taken such a hold today. So, from the front lines, your sales teams should themselves be authentic, and allow your customers to do the same.
TIP #2
Anticipate Consumers’ Needs Before They Do
Staying connected with your customer after they walk out the door with their purchase builds an ongoing relationship that can develop in the future.
MAKE THE CONNECTION:
Over the years, I have purchased many pairs of glasses, and the relationship feels transactional. The salesperson is engaged throughout the trying on, contacting of insurance, prescription updates, and fittings.
That is all great, but then there is radio silence. There is no outreach after, no sending a new lens cloth every few months with an updated pattern, just to let me know they are thinking of me.
Wouldn’t it be nice if, after six months or a year, my eyeglass store contacted me in a very personal way and said, “Hey, if you had any scratches or need your frames tightened, come on in as we would be happy to help!” without asking for the sale? Those little touches would go a long way to creating a more meaningful connection, and I would tend to become just a bit more loyal if they did.
TIP #3
Get an App
Developing a simple app is a great way to support your in-store clients.
MAKE THE CONNECTION:
Apps are a terrific way to help your customer or patient get organized and maintain all the information needed, [while keeping] you engaged without the challenges of cutting through with social media.
Clients could keep their prescriptions, fit needs, and insurance information all in one place. You can notify clients when their perfect frame shape arrives and, if you have the resources, offer virtual try-on options. This is also a great way to encourage referrals and award loyalty points for your most prized customers.
TIP #4
Be a Do-Gooder in Your Local Community
Being good citizens is elemental to millennial and Gen Z consumers, and they expect their brands and retailers to do the same.
MAKE THE CONNECTION:
The majority of these consumers would recommend and be loyal to those who also believe in the importance of good citizenship. Retailers have the unique benefit of being local and therefore able to support local causes.
This is a key benefit to brick-and-mortar retailers and not something that online sellers can replicate. What does your community need and how does your brand align with those needs? If you are an eyeglass store, can your clients turn in their old pairs for you to refurbish and provide to people in need?
Can you help to organize grassroots events in your community? Can you support local artists or businesses that need successful role models? There is no end to the ways to impact your local community and have your clients lend a helping hand in the process.
We have heard many times that brands need to tell a story, but even more powerful are those brands that can create a story.
ABOUT LORI MONACO:
President, Fashion Footwear, Accessories & Luxury, at market research firm The NPD Group, Monaco is a business leader who has successfully partnered with brands and retailers for more than 25 years. She has vast experience in strategy, consumer insights, business development, and research.