LCEI | The Knowledge of Luxury

News Release: High Net-Worth Consumers Rank “Best of the Best” Luxury Retailer Customer Experience

NEW YORK, NY–(Marketwire - February 23, 2010) - Given the tumultuous economy and its effect on luxury retail, the objective and independent New York City-based Luxury Institute reported the top-rated luxury retailer brands in the recently updated 2010 Luxury Customer Experience Index (LCEI) survey. The LCEI identifies the top brands that deliver true luxury customer experiences based solely on the independently verified ratings of wealthy and ultra-wealthy consumers.

The LCEI asks high net-worth customers to rate luxury brands by category across three equally weighted and detailed rating components: Complete Satisfaction, Brand Personnel and Store Environment. The survey also measures Problems and Resolutions, Worthiness of a Significant Price Premium and Willingness to Recommend.

The “Best of the Best” Luxury Retailers are: (LCEI score out of 10)

--  Bergdorf Goodman - 8.23
--  Nordstrom - 8.15
--  Barneys - 7.91

“The economic recession and individual brand responses have generated quite a bit of movement in the rankings,” says Milton Pedraza, CEO of the Luxury Institute. “For example, Barney’s, which had not been highly ranked in previous periods, has risen significantly due to a multi-year focus on improving customer experience. We have seen a tremendous interest in luxury brands seeking to dramatically redesign their customer experience, with a focus on both Luxury Cultural CRM initiatives and Analytic CRM projects working together to deliver measurably improved customer experiences.”

The proprietary Luxury Customer Experience Index (LCEI) survey is the only unbiased measure of true customer experiences of leading brands among wealthy and ultra-wealthy Americans. A national sample of 1,265 wealthy consumers was surveyed online in January 2010.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
(914) 909-6350
mswanson@luxuryinstitute.com

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Survey: Nordstrom Top of High-End Retailers

Posted in LCEI, Retail

by FN Staff
Posted Friday July 17, 2009
From Footwear News

The Luxury Institute reported Thursday that Nordstrom department stores ranked first in its annual report of top-rated high-end retailers.

According to the results of its annual Luxury Customer Experience Index, Neiman Marcus was rated second and Brooks Brothers rated third among wealthy consumers who were polled online about such areas as satisfaction, personnel and store environment. Respondents had an average weighted net worth of $3.2 million.

“Luxury retail clients tell us they look for expertise and trust, along with lasting value, when they shop luxury, and Nordstrom delivers that even in a down economy,” said Milton Pedraza, CEO of the Luxury Institute. “As the luxury retail industry finally sheds its ‘Industrial Age skin’ and adopts organic, customer-adaptive principles, we predict innovations from luxury leaders, such as independent customer advocates sitting on boards of directors, customer segment managers running the business and customer retention, customer referral and customer profitability … [becoming] the most critical metrics for the business.”

http://www.wwd.com/footwear-news/survey-nordstrom-top-of-high-end-retailers-2213898?gnewsid=b1f93d95d96c7257e33a29b209a7a9c5

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Luxury Institute Survey:High Net-Worth Consumers Rank “Best of the Best” Luxury Retailer Customer Experience

Posted in LCEI, Press Releases, Retail

(NEW YORK) July 16, 2009 - The Luxury Institute reported the top-rated luxury retailer brands in the 2009 Luxury Customer Experience Index (LCEI) survey, which identifies the top brands that deliver true luxury customer experiences in numerous categories based solely on the independently verified ratings of wealthy and ultra-wealthy consumers.

High net-worth consumers who have been customers of the brand during the past 12 months rated Nordstrom the “Best of the Best” among eight major luxury retailers. Those who recommend Nordstrom say:

“I like Nordstrom because they have the best shoe collection I have ever seen. They are so well organized and fairly priced. If I could, I would buy everything from there.”
“Everyone in the store is committed to helping you, even if it is not in their direct department. Selection is great and quality is never an issue. If you have a problem, they take it back, no question.”
“Their salespeople are really helpful and knowledgeable. I am buying their expertise more than anything else when I shop there.”

The LCEI asks high net-worth customers to rate luxury brands by category across three equally weighted and detailed rating components: Complete Satisfaction, Brand Personnel and Store Environment. The survey also measures Problems and Resolutions, Worthiness of a Significant Price Premium and Willingness to Recommend on the Part of Wealthy Customers.

The “Best of the Best” Luxury Retailers are: (LCEI score out of 10)

o Nordstrom- 8.31
o Neiman Marcus- 7.78
o Brooks Brothers- 7.76

“Perhaps it is no accident that Nordstrom sales continue to outperform its competition in a bruised economic climate, since the brand is an example of a customer-adaptive 21^st Century Luxury Enterprise,” says Milton Pedraza, CEO of the Luxury Institute. “Luxury retail clients tell us they look for expertise and trust along with lasting value when they shop luxury, and Nordstrom delivers that even in a down economy. As the luxury retail industry finally sheds its Industrial Age skin and adopts organic, customer-adaptive principles, we predict innovations from luxury leaders such as Independent Customer Advocates sitting on Boards of Directors, Customer Segment Managers running the business, and Customer Retention, Customer Referral and Customer Profitability metrics taking their place as the most critical metrics for the business. “

The proprietary Luxury Customer Experience Index (LCEI) survey is the only unbiased measure of true customer experiences of leading brands among wealthy and ultra-wealthy Americans. A national sample of 1,505 wealthy consumers was surveyed online. Respondents have an average weighted gross annual household income of $325,000 and an average weighted net- worth of $3.2 million. Survey results are weighted to match demographic and net-worth profiles of the same audience according to the latest Survey of Consumer Finances from The Federal Reserve.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications and research and consulting services that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the LuxuryBoard.com (www.LuxuryBoard.com), the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

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High Net-Worth Consumers Rank the “Best of the Best” Cruise Customer Experiences

Posted in LCEI, Press Releases, Travel & Leisure

(NEW YORK) May 21, 2009 - The Luxury Institute reported today the top-rated cruise line brands in the 2009 Luxury Customer Experience Index (LCEI) survey, which identifies the top brands that deliver true luxury customer experiences in numerous categories based solely on the independently verified ratings of wealthy and ultra-wealthy consumers.

High net-worth consumers who have been customers of the brand during the past 12 months rated Crystal Cruises the “Best of the Best” among 14 cruise lines. Consumers who recommend Crystal say, “This is a true luxury line. Every aspect of your trip is thought out and your every whim is catered to,” and “Excellent service, fabulous food, ideal destinations, good passenger to crew ratio and excellent amenities.”

The LCEI asks high net-worth consumers who are actual customers to rate luxury brands by category across three equally weighted and detailed rating components: Complete Satisfaction, Brand Personnel and Cruise Line Environment. The survey also measures the Problems and Resolutions ratings and the Worthiness of a Significant Price Premium and Willingness to Recommend on the part of wealthy customers.

The “Best of the Best” are: (LCEI score out of 10)

Cruise Lines
o Crystal Cruises- 8.57
o The Yachts of Seabourn- 8.55
o Regent Seven Seas Cruises- 8.34

“The luxury cruise line industry is incredibly competitive and capital intensive. As we begin to see hopes of an economic recovery, many luxury brands are rejecting the call for ‘back to basics’ while embracing innovation and reinventing luxury for the 21^st century. It is clear that luxury consumer values and attitudes have changed dramatically,” says Milton Pedraza, CEO of the Luxury Institute. “We expect the best luxury cruise lines to begin to innovate and reinvent their customer experiences to address the new needs, attitudes and desires of luxury consumers in a way that delivers pleasurable, engaging and meaningful luxury cruise experiences.”

The proprietary Luxury Customer Experience Index (LCEI) survey is the only unbiased measure of true customer experiences of leading brands among wealthy and ultra-wealthy Americans. A national sample of 2,856 wealthy consumers was surveyed in-depth online. Respondents were recruited and screened to only include those age 21 or older with minimum gross annual household income of $150,000 and/or minimum investable assets of $2 million. Survey results are weighted to match demographic and net-worth profiles of the same audience according to the latest Survey of Consumer Finances from The Federal Reserve.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications and research and consulting services that guides and educates high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates the LuxuryBoard.com (www.LuxuryBoard.com), the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

For Further Information, Please Contact:

The Luxury Institute, LLC
Martin Swanson
Business Development
Phone: (914) 909-6350
E-mail: mswanson@luxuryinstitute.com

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Luxury Institute News

February 23, 2010

News Release: High Net-Worth Consumers Rank “Best of the Best” Luxury Retailer Customer Experience

July 17, 2009

Survey: Nordstrom Top of High-End Retailers

July 16, 2009

Luxury Institute Survey:High Net-Worth Consumers Rank “Best of the Best” Luxury Retailer Customer Experience

May 21, 2009

High Net-Worth Consumers Rank the “Best of the Best” Cruise Customer Experiences