“Such a high turnover rate is extremely problematic for the industry, given the important role it plays. … (+)
getty
Any luxury buyer knows that a retail store must be more than just a place to buy products. It has to be an immersive brand experience. The front-line employees of a retail brand can make or break the customer experience.
However, a global survey of 12,000 retail workers across 12 luxury brands found that dissatisfaction among luxury retail employees is widespread. According to consultancy CXG, an astonishing 51% of people plan to leave their current employer for an opportunity to have more ownership, feel more valued, and have a better work-life balance. .
Ultimately, luxury customer experience (CX) is closely tied to employee experience (EX). Dissatisfied employees will inevitably lead to dissatisfied customers.
CXG’s research suggests luxury brands are failing in this regard, and better to fix it before it starts to show up at the customer experience level – or maybe it’s already happening, says Bain. The luxury goods market has shrunk by 2% for the first time this year, according to the report. Since 2008.
“Our research shows that the luxury retail industry has reached a critical juncture,” Christoph Kais, founder and CEO of CXG, said in a statement. “Luxury brands need to refine their employer value proposition (EVP) strategies to attract and retain top talent who can deliver exceptional luxury experiences.”
Employee Experience Survey Results
CXG just released a 50-page report called “Advisor Effectiveness: Driving Retail Success by Rethinking the Role of the Client Advisor.” This report delves into the findings of the Voice of the Team survey to help luxury brands drive retail success by rethinking the role of customer advisor. Enhance employee engagement and help retail talent recruitment and retention.
Expansion of job responsibilities
Retail employees will be expected to excel in retail sales skills, which increasingly require digital fluency, and demonstrate high levels of emotional intelligence to respond to and anticipate customer needs. facing challenges.
Retail employees are expected to continue to be in-person on the sales floor and to serve e-commerce customers remotely and via social media. Specifically, you need to:
Leverage digital to nurture and serve customers online, make personalized recommendations remotely, manage return and exchange processes, curate social media content, and identify trends and personal preferences. We will conduct data analysis to Build personal relationships by knowing your customers’ lifestyles and preferences, allowing them to tailor personalized concierge services and provide after-sales support. Become the brand’s lead advocate through storytelling and an expert on the brand’s evolving product line and trends across the luxury industry. Achieve sales and business development goals and execute customer retention strategies.
“The responsibilities of senior client advisors have expanded dramatically. Modern advisors are now expected to engage in digital interactions and relationship management while mastering storytelling and customer relationship management (CRM) skills.” explains the report.
“This evolution requires a blend of emotional intelligence, adaptability, and technological capabilities to improve the customer experience.”
While luxury brands increasingly seek advanced digital capabilities and engagement, CXG research finds that soft/emotional skills take retail employees from satisfactory to outstanding. These skills are difficult to measure in recruiting and difficult to teach.
“Advisors who are passionate, proactive and charismatic team players who can adapt and empathize easily, who can build relationships and resolve conflicts are most likely to be successful. ” states the report.
dissatisfaction
Perhaps the dissatisfaction felt by employees at high-end retail stores is due to employers focusing on quantifiable hard skills and undervaluing immeasurable soft skills.
Approximately 30% of high-level employees surveyed are dissatisfied with their day-to-day work. Only 38% of people feel they work in a motivating environment, and less than a third (31%) think their brand has growth potential.
Over 40% feel a lack of authority at work and 33% feel undervalued at work. Additionally, 61% feel they need more work-life balance.
The Luxury Institute, which conducts research specifically for the luxury goods industry, confirms high levels of employee dissatisfaction and adds context to the challenges luxury frontline workers are experiencing post-pandemic. Masu.
“They bear the brunt of customer anger and mistrust caused by low-quality products, unfair pricing, and poor customer experiences,” said Milton Pedraza, founder and CEO of The Luxury Institute. .
“They lament the robotic, scripted training and no training at all. It’s a perfect storm of negativity, and their colleagues are the punching bags,” he continued.
Find the off-ramp
Feeling this friction, about 51% of all people surveyed are looking for job opportunities elsewhere, and the percentage is even higher in the United States and France, where 60% plan to leave their jobs.
“Given the critical role of client advisors as a competitive asset in the customer journey, such high turnover rates are highly problematic for the industry,” the report states.
And that point is driven home by the statistic that according to Bain, 68% of a brand’s VICs (Very Valued Customers) will defer to a client advisor when transitioning to a new brand.
what it means
Bain reports that approximately 53% of luxury goods revenue is now generated through direct-to-consumer retail channels, more than doubling since 2010, and this incredible retail talent pool The potential losses would be equally staggering for luxury brands.
The news couldn’t come at a worse time for luxury brands, says John BR Long, a trusted retail advisor and executive recruiter at Korn Ferry, Russell Reynolds Associates, Bain and Accenture. He says:
“The luxury goods industry is experiencing a recession, and when business is tough, demands are especially high on front-line workers,” he said.
Hybrid payroll approach
“This is a commission-based industry, so employees receive small commission checks and are competitive with other employees in the store,” Long continued.
CXG believes that a better way to reward retail employees is based on sales metrics, customer satisfaction scores, repeat purchase rates, and other customer loyalty metrics, rather than on a commission basis based strictly on sales volume. We propose that a “hybrid approach” be taken.
CXG’s Kais writes, “By removing the pressure to push big-ticket items, sales staff can focus on long-term customer satisfaction, foster loyalty, and improve team performance.” .
more than money
Employers offer employees the prestige of working for a well-known luxury brand, the opportunity to engage with high-profile clients, and access to exclusive products, as well as global opportunities and cutting-edge training and competencies. Pathways for career advancement, such as development programs, must also be provided.
“Retention requires a sophisticated, multifaceted approach that goes beyond traditional compensation packages and basic career advancement,” the report states.
“The challenge for luxury brands is to equip their advisors with the skills to excel in all their endeavors, while creating an environment so enriching and rewarding that they can’t imagine leaving.
“In this sense, the luxury retail industry, with its unique blend of craftsmanship, customer service and brand heritage, poses both special challenges and unique opportunities for talent retention.”
trust is required
However, CXG’s research found that “there is a fundamental mismatch between brands’ perceptions of the working environments they provide and client advisors’ fundamental perceptions of the working environments in which they operate.” are.
That’s why nearly half of luxury retail employees are looking for an exit to their current job, whether it’s to move to another luxury brand or another industry. Excellent customer care and customer service experience is in high demand across all industries.
Like retail employees everywhere, high-end retail sales associates are looking for increased opportunities for career growth and financial benefits, including personal recognition, flexibility, work-life balance, and more meaning and purpose in their careers. and desire to expand non-monetary rewards.
“We are not surprised by CXG’s findings, as research across all industries and institutions shows that trust between employees and employers is at an all-time low.
“The only way forward is for employers to take responsibility and restore the trust of their team members, not just with nice words and sound bites, but with concrete actions that build trust,” Pedraza concludes. I attached it.
See also:
