For many years now, everything in the luxury and retail sectors has been focused on the customer and the shopper. On the surface, this seems right; after all, the customer is always right. But the truth is that it is not working.
Recent data from The State of Fashion: Luxury, by Business of Fashion and McKinsey & Co, shows that 36% of customers believe the in-store experience has worsened. It appears that, despite much focus and discussion, our apparent efforts are not only not enhancing the much-discussed customer experience, they are reducing it.
A similar trends can be seen in travel retail, where the market has been battling falling footfall and shopper engagement in recent years. The travel retail sector benefits from a guaranteed supply of potential shoppers, but each of them is subject to distractions, from flight times to mobile phones, which make it more difficult than ever to create creating engagement and a lasting impression.
These issues across the industry are a serious concern and there is no doubt that a serious mindset shift is needed. So from here on, I am not talking about or considering shoppers or customers in the retail sphere. I am talking about guests.
From here on, I am not talking about or considering shoppers or customers in the retail sphere. I am talking about guests.
With the modern consumer seeking service and experience which is delivered in a personal and tailored manner, it is time we, as an industry, reframe how we look at the people who are in our stores and patronising our brands.
The State of Fashion: Luxury report tells us that 80% of high net-worth individuals are set to shift a portion of their spend to wellness and experience this year. That should not come as a surprise. The demand for experience has been there for a while – questions remain over whether we have met it properly. The growth of the wellness category is, I would argue, directly linked to this. Wellness experiences are, by their nature, personal and tailored. They are not products, they are services. Not shoppers, but clients and guests.
The primary concerns of the modern shopper support this approach. Today, people value experiences over goods; they are less loyal to brands, meaning that every interaction must be perfect, or custom is lost, and all in-store experiences must be consistent with the brand experience up to that point. The team from McKinsey &Co and Business of Fashion argue, as I have previously suggested, that brands must identify their target customer and tailor their offer to that person and their needs.
Today, people value experiences over goods; they are less loyal to brands, meaning that every interaction must be perfect
The shift to a guest mentality would be a huge benefit for frontline staff as well. It would help those in-store team members, who are the apex of the brand experience, to consider people entering the shop as individuals to be attended to and well-treated in a way which is not transactional. The whole experience should be tailored and premium, regardless of whether a purchase is being made.
Such an approach also brings about a change in the mindset towards the retail space itself. When one considers customers as guests, the space ceases to be just a shop, or a place of work, it becomes somewhere to show off and welcome people in to. It elevates the aspirations of those on whose actions our brands’ futures rely.
The shift to a guest mentality would be a huge benefit for frontline staff as well
So, I urge all of you, let us make 2025 the Year of the Guest. Customers and shoppers are our past, if we want to get experience and engagement right, the guest mentality is the way forward.