The one thing you shouldn’t cut in a struggling economy.

As the economy continues to struggle upward, luxury brands still need to find ways to increase their bottom line. And some of them make the big mistake of cutting sales staff.

To this, we say (as emphatically as we can without exclamation points): wait, stop, don’t.

One of many things Milton Pedraza, CEO of the Luxury Institute, suggests to do this year is stay on top of “clienteling” – making sure all of your sales staff are trained in how to develop crucial, ongoing relationships with your consumers.

We would go further and say you should not only invest in sales staff on your retail floor, but also for a subtle, but constantly available online chat function.

There are three reasons you should arm your sales team:

    1. Affluent consumers who have a relationship with a sales associate spend almost twice as much as those who don’t.
    2. These consumers are, of course, more likely to come back.
    3. The sales experience is almost equivalent to the brand experience. In an age when the wealthy value experiences over things, particularly travel, the in-store and online environments are more important than ever.

Leave a Comment