Life Style Marketing

The World's Worst Salesperson

I had come to believe I was the world's worst salesperson. I have an offering which is guaranteed to produce a 10x return on investment (ROI). When properly applied it results in 200%-500% increases in revenue-per-email I have presented it to a variety of companies. A few have tested it and achieved the results. The rest have either ignored the results or said "too good to be true." As I said, this had brought me to the conclusion that I must be doing something terribly wrong.

Then I read Thinking, Fast and Slow by Daniel Kahneman, a Nobel Prize winner in economics. ( http://www.businessweek.com/magazine/book-review-thinking-fast-and-slow-by-daniel-kahneman-10272011.html) I realized that the reason that our LifeStyle research is receiving such a dismissive response is that I have been talking to my prospect's System 1 frame of mind. This is the lightening fast mechanism we are all equipped with that helps us decide what to pay attention to and what to ignore. It relies on heuristics developed over time. My prospects have all been taught that "if something sounds too good to be true it probably is." So now it makes sense to me that this work has received the initial reaction that it has. It is not that I am the world's worst salesperson. It's that I have a totally new idea to present. I should expect this.

What I need to do, I realize, is anticipate this initial reaction and immediately address the "too good to be true" objection. How does one do this? Kahneman, whose work challenged conventional wisdom, gives a suggestion in the book. He indicates that people are more likely to change an embedded attitude if confronted with a particular and striking instance which demonstrates the new point. Kahneman says that people can sometimes "go from the particular to the general" and change an opinion. It is much harder to go from the general to the particular.

So, it will be better for me to start with the case histories (the particular) and move to the benefit (the general 200-500%) rather than state the benefit first and then move to the demonstrations. A good lesson for a marketer to learn. Thank you, professor.

How a Brand Thinks

Marketers often recommend conceptualizing a brand as a person. In this mode of thought, various human attributes are attached to the brand. These attributes are often the ones research has indicated are most important to the consumer. A famous example (dating myself) was the creation of the Marlboro Man to embody the attributes male smokers valued. Another example is Betty Crocker. Most brand statements today include some version of a brand personality.

What is missing? Well, if you are an employee of the brand you may have a question regarding how you (as an example) a 23 year old MBA graduate working in sales, how do you get to the point where you can act like the Marlboro Man might act in a particular situation? Not that you have to wear chaps and carry a branding iron; but how do you display the character of your brand in your personal behavior?

Or if you are working in Nordstroms, how do you enact that brand personality? Or a Mercedes dealership's personality? This is where the concept of a "habitus" (http://en.wikipedia.org/wiki/Habitus_(sociology) comes into play. There are several steps in developing (let's use the more common term) a habit. For example, there must be memories of actually performing the behavior to draw on. These behaviors are rooted in a belief.

So when we ask the MBA graduate to "act the way the Marlboro Man would" we should have previously provided some insight into how the true (brand) Marlboro man thinks and what he he believes in. We should have provided insight into how and why the Marlboro Man translates this in a particular set of behaviors. Very importantly we would provide insight into why other, alternate behaviors would not be acceptable to the Marlboro Man, even if they would be socially acceptable to someone else.

And we would have provided our MBA graduate an opportunity to practice.

The point is that an employee can act like the brand only if he/she has been taught to think and feel like the brand.

Critical Success Factors for the Luxury Market

What are the factors critical to success in the luxury market? How does a luxury brand different itself from a "mass" brand? What does a "mass manufacturer" trying to move up-market need to worry about? This one-pager summarizes key factors to which senior management should attend.(http://www.premiumknowledge.net/assets/files/pdf/Luxury_Market_From_an_economist_POV.pdf)

The deBoulle Experience

The following interview with Denis Boulle, deBoulle Jewelers, appears in the current issue of Lustre. I refered to the interview in yesterday's entry as a reflection of a management philosophy that results in exceptional customer service and experience.

"Over the last 25 years, deBoulle has grown from an 800-square foot shop with two employees (my lovely, talented wife Karen and me) to a 13,600-square foot signature store with 25 employees. As our business grew, Karen and I strove to make it different from other jewelers. We began by attracting the finest brands. This, in turn, allowed us to attract high-performing salespeople which, in combination, attracted highly affluent clients. We grew fantastically and wanted to know how to keep the process going. What had developed from intuition now needed a systematic approach.

"We were fortunate to have Bob Bloom, chairman of Publicis N.A., and a marketing genius (who has just published a book, The Inside Advantage), as a friend and client. Bloom led our team through a “branding” exercise. He tasked our team to define exactly what deBoulle was, what the unique benefit to our client was, and what competitive advantage that gave us. After two days of head-scratching and soul-searching, we concluded it was the human element, the way that we interacted with each other and our clients, that was the real difference between us and the competition, local or national. We called this phenomenon “The deBoulle Experience.”

OUR DIVERSITY IS A STRENGTH

"That discovery may sound arrogant, but it was humbling. We realized our business can only be as good as we are to each other. Our growth hinges on the ability to serve a diversity of affluent personalities and tastes. We can only be as great as our ability to nurture the variety of internal talents it takes to run a fine jewelry business: the blending of fashion and finance, attention to detail, and stimulation of desire. We serve an international clientele. As a result our team includes Americans, Brazilian, Canadian, English, French, Korean, Lebanese, Laotian, Mexican, Spanish, and Vietnamese. “The deBoulle Experience” binds us together and our customers to us.

THE RULES

"Over the years, we realized we had developed a culture that harnessed both ego and empathy. We evolved a set of unwritten rules about how we interacted with our associates and these rules in turn governed how our associates attended to each other and our clients.
The branding session articulated the previously informal rules that said we were to be simultaneously creative and caring. We were to be demanding of ourselves and respectful of each other. We were to care for each other like family and care for our clients like individuals. It may sound corny, but we all treated our clients the way we wanted to be treated. Over the years these “rules” had created an environment especially attractive to successful business people who can immediately tell the difference between real service and lip service.

A SALON LIKE NO OTHER

"We translated this experience into the physical environment of our new store. The added space enabled us to have a “living room” area and where our clients could feel at home, chat privately with shopping companions, look through magazines, or have the beverage of their choice.

"Sometimes our best customers want more than a cappuccino. They call with unique requests: Can we arrange a table at a hard-to-get restaurant in New York or London? Can we get a private jet during a heavily traveled time? Intuitively we know filling these needs is as much a part of “The deBoulle Experience” as satisfying a request for a unique gem or a rare timepiece. We are flattered that our clients rely on us beyond traditional jewelry services.

"We also show our caring for our clients by supporting causes important to them. Besides hosting several events in our salon, we support many more charitable and community efforts through our personal and financial involvement. We give of ourselves as well as of our resources just as our clients do.

"Recently our customers have encouraged and inspired us to add a new dimension by creating “The deBoulle Collection.” As unique and beautiful as its mastermind, who also happens to be my very talented wife, the collection offers an array of exquisite rings, bracelets, brooches, necklaces, and earrings of the finest caliber. Before a piece is added to the collection, it must pass the same litmus test as the rest of the elements making up the deBoulle experience.

THE SECRET INGREDIENT

"I shall let you in on a secret ingredient to the success of “The deBoulle Experience.” It is vital to each relationship or transaction—the fun factor. From design to consultation to closing the sale to the presentation, the experience must be fun for both the client and the associate.

"How much can we grow? How many cities can we operate in? How many “doors” can we open to our standards? We now realize it is not a matter of how much working capital we have. It is a matter of how well we work together. It is a matter of disseminating “The deBoulle Experience.' "

Denis J. Boulle
deBoulle, Dallas, Texas

Between the Rocks and the Investment Banker

The New York Times' "Critical Shopper" provided a critical look at the sales staff and resulting customer experience at Fortunoff. A quote:

"The largely untrained staff undermines what the new Fortunoff could be....i.e., more like Tiffany's, less like Macy's ...in the mind of someone new to it." (As the article points out Fortunoff has recently been taken over from the founding family by investment groups in 2005.).

In other words, the problem at Fortunoff is most likely mangement direction not just a sales or human resources snafu.

By coincidence, I have just published a column in the current issue of Lustre Magazine on this very subject: How the financial motives of large luxury brands would distract them from providing customer-centric service.

As the economy tightens I hope that investment groups that have acquired luxury brands (e.g., Texas Pacific Group, which acquired Neiman-Marcus) will be cautious as they tinker with the chemistry of their new possessions.

Because I am certain that the talented independent luxury merchants ( like Denis and Karen Boulle, featured in the same issue of Lustre) will continue to hone their competitive advantage: The Customer Experience.

Selling Luxury: The Art of Closing the Sale

How do experts "close" a luxury sale?

Representatives from four different aspects of the luxury industry shared their insights and experience in a panel discussion for The Luxury Marketing Council of Dallas-Ft. Worth. Participating were:

• Hesham Elgaghil, Park Place Motors of Texas Mercedes
• Lynn McBee, Member of non-profit boards
• David Smith, Owner, Pockets Menswear
• Lesley Smith, representative, Peter Max
• Adam McGill, Editor, Dallas CEO magazine (moderator)

Key points made included:

• Closing is most effective when it is a step in a process, not an isolated or abrupt action.
• It is OK to start with a significant proposal (or a large "ask") but this should not be confused with closing, which happens several steps later.
• Early in the process the seller must learn the buyer's priorities and sense of value by attentive listening. A good close can occur only if those priorities are addressed.
• The buyer's questions must have been understood and answered. When the buyer has run out of questions it is a good sign that a close might be appropriate..
• Effective closing is a collaborative act between the buyer and the seller. it is not something one does to the other. "Shall we write this up?"
• Closing can be facilitated by creating a sense of urgency (e.g., this is a one-of-a-kind item). But a good close cannot be forced on an unwilling or unready buyer.
• The close is not complete until the buyer is back at home and satisfied.
• If a customer returns merchadise, this should be viewed as an opportunity to correct a bad close and to close on the right merchandise.
• Closing should be aimed at building a relationship not just at making a sale.
• A "good" close is one that results in the customer feeling good about his or her decision and how they were assisted in making it.
• In some categories such as art for the home,  the close must be made with the couple not just one of the partners.

A point was made from the audience that younger luxury customers ("the modern luxury customer") are from a generation that is often skeptical of sales personnel and the sales process. But once these Generation X customers have experienced truly helpful service they become very loyal to the people who provided it.

The panelists agreed that placing a high priority on doing the right thing for the customer results in higher margins and lower expenses. That is the luxury of being in luxury sales!

The panel was held at Reflections Fine Art Gallery, graciously hosted by Brandy Carlson. A complete set of notes will be made available to members of The Luxury Marketing Council.

Any comments, case histories or thoughts on "selling luxury" are welcome.