The luxury service encounter

The luxury service encounter 

The luxury service encounter consists of e main elements:


- People
- Physical Evidence
- Surroundings


People are the most important aspect in a service encounter because they can make or break a deal. If one is dealing with unhappy employees, the customer will more often than not end up with bad service. This will not only ruin the customers experience, but also potentially lose the business a client for life, and result in alot of bad word of mouth.  In business it is said that retaining customers is often cheaper than adding new ones. This is one of the most important concerns for brands today. 

Keeping employees happy is very important in today's business world. However it is also important to understand that we can no long just expect 'service with a smile'. It has to be a win-win situation inorder for us tto get the most out of the employees in the service the brand offers.




Certain things like employee benefits, promoting teamwork, empoyering employees etc can all be used as part of customer dervice delivery experience to ensure we are are giving the best service and keeping the employees happy at the same time.

This graph shows other aspects that are part of the customer delivery experience.






Next, The Physical Evidence is extremely important.


The style and appearance of the physical surriundings are extreemly important espically when dealing with the luxury industry and client. We have certain expectations to what we expect when we check into a hotel, restaurant or spa etc.


The pictures below show us some examples of extremely stylish physical surroundings:

THE DORCHESTER (http://www.archimage.co.uk/dorchester.htm)

Ritz London (http://www.forbetterforworse.co.uk/honeymoon/the-ritz.shtml)






Lastly, surroundings are very important as well. Location is key, we expect certain hotels and restaurants to be located in posh areas because their location affects the consumers perception of the service and quality of that particular place.  The Dorchester and Ritz Carlton are both located in prime areas of london, as are members only clubs like Mortons.

The collective reflection of the class: different brands, and different feelings. I have summed these up as given below:

 

 

 Lastly, we discussed what are the things that drive consumers to brands 'Loyalty Drivers'. I have attached a snapshot of the group idea below. It is not essential to be a 100% on all of these aspects howebver I believe that atleast some of them should be check off

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

Sustainability

 




Sustainability can be related to several aspects. 

The oxford dictionary defines sustainability as "ability to be maintain a certain rate or level'. This could be in terms of CSR, products, ecological in nature etc. Businesses have the responsibly to ensure that their practices are 'sustainable'. In order to ensure that what is available for this generation is also available for the next generation.


This is very important for luxury brands because luxury itself is very precious as is the luxury brand.  
Luxury products like jewelry, watches, sunglasses and other accessories are often passed through the generations because fashion often works in cycles.


However when it comes to products like yachts, cars, jets sustainability needs to be considered at a deeper level because these products have huge impacts on the environment.




The global elite are increasingly well educated and concerned about social and environmental issues. They want their brands to reflect their own concerns and aspirations for a better word.



The video below explains this a little further:

Sustainability goes beyond individual brands and has also moved to specific countries:
- Certain countries have banned imports/exports of particular kinds of leather and fur in order to sustain environmental sustainability.

- Certain products are made in a way that can be passed on to the future generations: 


Patek Philippe watches.

Tiffany also based their business model on sustainability and says 

“Sustainability is our most important designer; Nature is our best designer.”  Tiffany.

- Brand Sustainability: Sustainability as part of the Brand DNA

Loro Piana :  They use Vicuna fibers, and because the animal is almost extinct they breed these animals and sell the fur. This is a sustainable business practice.

Other examples of brands that are practicing sustainability:

1) Apple: They recycle use Ipods and give consumers discounts on new stock.

2) Loro Piana: as mentioned above.

Fashion and sustainability:

Personally, my favorite example of sustainability and fashion is Anya Hindmarch's "I am not a Plastic Bag'. She designed a simple bag saying this and got millions of people aware of the importance of sustainability and environmental concern.

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Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

Website :YouTube:  Global warming fashion and plantable packaging (http://www.youtube.com/watch?v=Dtaa98jPKJw) Used on March 22, 2011 (London, U.K)

Design Strategy In Reaction To A Business Plan

Design Strategy In Reaction  To A Business Plan

I found this lecture to be extremely useful because it explained the relationship between design and the business plan.  The class was started by stating the importance of being creative, especially for luxury brands. This made me think about where I could possibly use design elements in my brand extension (business plan). 

How does design management support the realization of a luxury brand and support corporate endeavors? 

Design has various layers, and each layer signififies something different.  For example: Design in meaning (is the mental layer: i.e its concerned with the menaing behing the product -> this relates to design as expression. Each layer has to be designed in specification to the corporate endvour to ensure that the brand isnt losing meaning.

Within luxury, it is even more critical that people think creatively, and invent and reinvent to represent the brand as well as possible and keep it relevant to the times…

We found that Good Design often has certain characteristics that go along with it. The diagram below lists some of these characteristics.

The following video explain the relationship between business and design: It explains the relationship and the problem that comes along with this marriage.

Reference:

Module Slides, Class Lecture: Serena Gossain and John Harrison

 

Website :YouTube: Richard Seymour - Business and Design

 (http://www.youtube.com/watch?v=HT6z7HZdYj0) Used on March 22, 2011 (London, U.K)