Luxury Retail and Digital Management, 2nd Edition

Chapter 6Customer Identification and CRM

Your most dissatisfied customers are your biggest source of learning.

–Bill Gates¹

The better one knows one's customers' tastes, the easier it is to persuade them. It is therefore important to know them as personally as possible. The more one can identify the overall profiles of the customers who visit one sales point or another, the better one can cater to their needs. For example, if Koreans visit a store very frequently, it would make sense, if possible, to have a vendor who speaks Korean. If a store has a young clientele, it is better to have a young sales staff. The brand should therefore have a database as comprehensive as possible.

This database is created together with the key performance indicators (KPIs) that each store should elaborate to ensure the smooth follow-up of operations. These are:

• The attraction rate: Number of passers-by who enter the shop, compared to the number of people who walk by. This indicator is important in a shopping centre, for example, and helps to determine whether the brand corresponds, more or less, to the clientele of the centre.
• The conversion rate: Number of customers who make purchases as against the number of customers entering the store.
• The number of customers that enter the boutique daily.
• The average ticket.
• It may also include: Turnover generated by fashion products and turnover from accessories.

In a properly managed boutique, the store manager could enter the number of passers-by (counted ...