Why luxury brands don’t sell themselves: Loyalty requires every interaction

In many of my luxury sales trainings, I observe a recurring myth among luxury brand staff: that once a brand reaches a certain prestige, it essentially sells itself. This belief is compelling—when a brand achieves significant desirability, clients seem to just “want it.” This can lead to complacency, making people think they can rely on autopilot and still generate sales. However, this belief is dangerous. In the luxury world, nothing is guaranteed, not even loyalty. Countless research insights, projects, and brand audits over the years show that your most loyal clients are often the first you may lose. Desirability and client loyalty must be fought for, earned, and regained with every interaction. Luxury brands do not exist in a vacuum, and the competition for clients’ attention, money, and loyalty is more intense than ever. A recent study I conducted with Adobe provided a significant insight: when luxury brand clients break up with a brand—after years of loyalty—they do so in 65% of cases due to a dissatisfying interaction with the brand. While clients sometimes switch brands for a better experience elsewhere, in most cases, the brand is to blame, typically due to poor human-to-human interaction. These interactions are critical. Loyalty breaks down faster in luxury than in almost any other sector. Why? Luxury clients have no shortage of alternatives, and their expectations are sky-high. If a brand fails to deliver extraordinary experiences consistently, clients will move on. The notion that past success guarantees future loyalty is an illusion. Luxury brands must prove their worth in every interaction, every single time. The myth of the self-selling luxury brand The belief that a luxury brand can sell itself stems from the idea that brand heritage, exclusivity, and craftsmanship are enough to secure long-term loyalty. Many luxury brands have built legacies over decades or centuries, and their iconic status often leads to complacency. In my luxury masterclasses, particularly when interviewing sales staff, I often hear the belief that the brand’s name and cachet alone are enough to attract and retain clients, leading to a false sense of security. This mindset is dangerous because it overlooks the most critical factor in luxury: the client. No matter how strong a brand’s desirability may be, luxury clients expect constant reaffirmation of the brand’s value. More importantly, they expect to be at the center of attention because luxury purchases are about anticipating a significant positive emotional shift. The psychology behind this is often overlooked, requiring all eyes to be on the client. Reality, however, is often different. Many client interactions with luxury brands feel transactional. Worse, when a client returns for service, client-facing staff often don’t care because they won’t get a sales commission. This short-term thinking is fatal. If a brand delivers underwhelming experiences, it risks becoming irrelevant to that client almost immediately. Our study showed that just 1.7 below-expectation experiences can turn a loyal client into a breakup. And like in a relationship, breakups with brands are always ugly, with ramifications far beyond losing one client. The fragility of loyalty in luxury Loyalty in luxury is delicate and fragile. Unlike mass-market brands, where loyalty is often built around convenience or price, loyalty in luxury is deeply emotional and easily broken. In luxury, the stakes are dramatically higher. One single misstep—whether it’s a poorly handled client interaction, a poor client experience, or a failure to deliver on the brand story—can send even the most loyal clients looking elsewhere without hesitation. During my masterclasses, I repeatedly encounter a false sense of security regarding loyal clients, which can lead to behavior that, from a client’s perspective, feels arrogant or complacent, even if the salesperson or brand ambassador is unaware. In today’s luxury reality, clients are more empowered than ever. They have access to a global market, are hyper-aware of trends and experiences, and demand personalization on their terms. The moment a luxury brand fails to meet their expectations, their loyalty is at risk. Brands must work constantly to win clients over, time and time again. Luxury brands are not entitled to loyalty; they must earn it. Every interaction is a battle for desirability Luxury is not just about offering exceptional products and services. Fundamentally, it’s about the human factor: creating emotional experiences that resonate with clients on a deep, personal level. Every interaction—whether it’s a conversation with a sales associate, a social media engagement, or the unboxing of a product—must reinforce the brand’s desirability and uniqueness. Every interaction counts. Every interaction is a battle for desirability. What many brands fail to recognize is that every single touchpoint is an opportunity to either strengthen or weaken that emotional connection. If a client walks into a boutique, a hotel, or any luxury venue and is met with indifference, that experience is a lost opportunity—or worse, the breaking point. If a luxury brand’s digital presence feels impersonal or outdated, that brand’s desirability takes a hit. Brand breakups often happen unnoticed—when a client calls customer service and is put on hold endlessly, when you bring your luxury car to the dealer for service and are told to come back in a few weeks, or when you go to a store with an issue and are told it was your fault. These seemingly “small” moments, when poorly handled, can quickly unravel years of brand equity. Luxury clients expect brands to support and inspire them with every interaction. They want to feel part of something exceptional, requiring constant effort from the brand. A luxury brand that does not actively engage its clients becomes ordinary in no time, and in luxury, ordinary is unacceptable. The ramifications are brutal—just look at the financial performance of brands. While some brands grow consistently, others decline at unprecedented rates. The fight for loyalty is in every interaction. Every moment counts. Are you ready? Daniel conducts masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Why luxury brands don’t sell themselves: Loyalty requires every interaction

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Published September 02, 2024

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Why luxury brands don’t sell themselves: Loyalty requires every interaction