March 3, 2011
A study by The Luxury Institute found that Bergdorf Goodman and Nordstrom excel far better than other retailers at having a top-notch overall shopping and customer service experience for their affluent consumers.
This was the key findings of the report titled “Luxury Consumer Experience Index.” Respondents rated retailers on store personnel, the shopping environment and whether the overall experience resulted in complete satisfaction.
“I think what we found was Bergdorf Goodman is really outperforming anyone in customer experience,” said Milton Pedraza, CEO of The Luxury Institute, New York. “It’s a large store in the middle of New York City with global clientele.
“That means that people are having a great experience with sales associates who are knowledgeable, respectful and polite,” he said.
The Luxury Institute is a New York-based ratings and research organization.
Survey participants had minimum household incomes of $150,000 with average income of $271,000 and average net worth of $2.4 million.
Top notch
Neiman Marcus’ Bergdorf Goodman subsidiary earned the top ranking among eight luxury retailers in the survey of wealthy shoppers.
Nordstrom received the third-highest ranking in the luxury consumer experience index, according to The Luxury Institute, with Brooks Brothers coming in second.
Brooks Brothers excelled in the total satisfaction category.
High-end retailer Nordstrom remains the most popular luxury shopping destination, visited by 38 percent of wealthy shoppers in the past 12 months. It also earned the highest loyalty, with 98 percent of consumers returning to shop there.
Barneys scored fourth in terms of customer experience, with Saks coming in fifth and Bloomingdale's finishing eighth.
“I think one of the biggest conclusions is these companies sell similar products,” Mr. Pedraza said. “So it’s not the products that are going to differentiate them, it’s the service.
“It’s about the experience consumers have in the store,” he said. “And what kind of relationship these consumers have with the sales professionals.”
Thumbs-up
The Luxury Institute recently conducted a similar study that found that Burberry and Bottega Veneta excel far better than other companies at having enthusiastic brand ambassadors in their stores who are interested in helping customers (see story).
Luxury brands and retailers understand the value of creating a customer service experience.
The findings provide insights into how well luxury retailers take advantage of the opportunity to control the environment in which they present their goods.
This study shows the opportunity for the lower retailers on the list to really step-and and deliver a much better customer experience.
Bergdorf Goodman and Nordstrom have a very strong focus on the customer service experience.
“I think there’s a lesson in this study that luxury retailers need to step up in a measureable way,” Mr. Pedraza said. “The learning is they need to dramatically out-behave competitors on customer experience.
“These rankings show where brands are doing well, and where brands are not,” he said.
Final take
The Supima collection from Brooks Brothers
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