Page 69 - The New Gold Standard

Be Relevant
safety.” While their specific reasons will differ, discerning afflu-
ents analyze and substantiate luxury purchases. Research further
identified three additional insights related to discerning afflu-
ents. First among these is this group’s desire to leave its mark in
the world and create a legacy, either through business or family.
Additionally, this group of customers pursues life with confi-
dence, choosing its own paths and not following others. Finally,
discerning affluents seek to lead more interesting lives where
they collect stories rich with detail.
With an understanding of this important luxury customer
segment, Ritz-Carlton leadership continued to refine their ho-
tel design and services to broadly address the needs of both types
of consumer—the more traditional and the new segment. Mark
Miller explains, “Leadership sought to retain the excellence of
the guest experience while expanding it to meet the needs of dis-
cerning affluents, whose basic currency is found in the stories
they collect. When you ask these people about their favorite lux-
ury purchase, vacation travel is always No. 1. And when you ask
them why they say that, it’s because of the memories they gar-
ner. It is as if, for these guests, money is less the currency than
time. So when they spend it, they want to spend it on something
that has meaning, relevance, and value to them. Collecting a
story that other people can’t buy off the shelf makes the experi-
ence rare and exclusive to them, and, as such, the time invested
yields worthwhile gains.”
Business analysts such as Jennifer Kirby, consulting editor
for mycustomer.com, report that companies often cling to their
traditional customer segment without demonstrating the courage
to evolve with changing customer trends. Jennifer suggests, “An-
tennae should be trained to register changing market conditions,
e.g., customer feedback, sales force intelligence, monitoring
word of mouth. And all staff [should be] alerted to [the impor-
tance of] customer experience and their own performance in de-
livering it.” In assessing the demise of Levitz, a large U.S.–based
furniture retailer, Jerry Epperson, managing director of the

49