The mousetrap – stuck in luxury consumer stereotypes

“This felt fake. She wasn’t interested in getting to know me; only when I asked for a more expensive piece she paid attention. It seemed like she wondered if I could even afford it.”

As part of my trainings on customer experience in luxury, I ask my trainees to conduct Mystery Shopping. Often a sobering experience. Especially to the Millennials and Gen Z’s among them – two generations that knowingly value community, purpose, connectedness, and emotions. Why do we fail to build rapport and fall into the mousetrap of stereotyping?

Changing environment

The ultimate luxury for a luxury brand is winning the loyalty of its customers. Yet, we struggle with the concept of long-term relationships in luxury retail. Some brands are spoiled by strong customer interest, not seeing the need to bond beyond the purchase. Others are sleeping while trends spurred by younger generations, challenge traditional luxury practices: The segmentation between those who can and cannot afford luxury is blurring. Interest in sustainability is growing. Boundaries between male and female are fading. Diverse spending power, interest in niche and purpose-driven brands and gender fluidity are just a few trends impacting the luxury landscape.

Breaking categorization

Stereotypes have many shapes and forms. Traditionally, men would flaunt their possessions to show they were good candidates for marriage; Women owning luxury products were labeled “trophy wives”; A 26-year-old buying a high-end product? Must be the child of wealthy parents.

These days, traditional luxury cornerstones like exclusivity, social distance, and status are upside down -  and so are “classic” product categories. The 42mm watch with the blue dial? For men. The smaller version with a pink dial? For women – Not anymore. Gen Z is breaking with the traditional gender classification, showing the highest awareness for non-binary pronounce compared to Millennials and Boomers. Does this influence the luxury sector? Yes, profoundly. Are these developments making it harder or easier to connect with clients?

Let’s stay connected

Stereotypes are used to simplify our daily lives. Categorizing helps to decide quickly how much effort to put into an interaction. Beyond that, there can be a clash of interests when it comes to customer experience: We talk about long-term connection yet incentivize short-term transaction.

What happens when we cling to outdated ways and fear what we can’t categorize? SNAP! We get caught in the mousetrap of stereotyping. We miss out. We miss the opportunity to get to know and stay connected with our clients beyond the purchase.

Authenticity as a starting point?

How can we avoid being ensnared by the trap? By being authentic, inclusive and by inviting our customers to be their authentic selves, too. We can find common ground with anyone – if we are courageous enough to look for it. I say courageous because authenticity comes at a cost. Its currency: Self-reflection, sincerity, sensitivity to individual and cultural differences, as well as accountability.

“It was such a nice experience. I felt welcomed and taken seriously. Not just as a potential customer but as a person.” I cannot wait to hear my trainees saying this after finishing their Mystery Shopping missions. When was the last time you found yourself caught in the mousetrap?