Key Takeaways:

  • The pandemic reprioritized what luxury means to many clients;
  • Represent luxury in all you do;
  • The best business attribute is trust.

By Dianne M. Pogoda

 

When speaking “The Language of Luxury,” “trust” is the most important word.

This was the main message of a KBIS NeXT Stage panel on finding, cultivating and engaging the luxury client. Moderated by Kathryn Given, style director for Luxe Interior + Design magazine, panelists David Friedman, co-founder of luxury market consultancy Wealth Quotient, Julie Faupel, founder and CEO of REALM Global, and luxury market designer Brian Brown, principal designer of San Diego-based Brian Brown Studio, discussed how some elements of the luxury market have changed — but some will always be the same.

“In the last couple of years, during the pandemic, people were home for an extended period,” said Friedman. “They paused, they pivoted, they set new priorities, and they purchased. Homes have become the new salons and entertainment spaces. We are bringing people into our homes more, and design is going to reflect that.”

Faupel, whose company is a global technology platform that matches affluent individuals with real estate professionals and high-end properties, added that as the nation has emerged from COVID, “We’re seeing a lifestyle migration. We service providers have to teach the clients how to get acclimated to their new communities and build connections.”

Drilling down to practical advice for building a luxury clientele, Brown advised designers early in their careers to treat every job with the utmost care and professionalism. “I didn’t start out in luxury, but that’s where I wanted to be,” he said. “You have to do your absolute best in every one of those jobs on the way up…that’s how you build your reputation.”

 A major part of that journey starts with the right packaging.

“You have to get your marketing in line before you start,” Brown added. “I bought really expensive business cards, I paid someone to design my logo, I spent money on a website. You have to look as legit as possible when you start — first impressions, right? So if you don’t have a luxury project to show yet, your business card could say ‘luxury.’ And then that tactile thing attaches to you.”

Friedman said the best way to cultivate a luxury clientele is to ask for referrals. “Your existing clients are connected to your future luxury clients,” he said. “People are four times more likely to buy when referred by a friend…. Referrals are three to five times more likely to convert compared to non-referrals, and referrals have a 37 percent higher retention rate compared to non-referrals. A referral conveys a layer of trust on you from someone else, whom the prospective client trusts. And trust is everything. Everyone wants a piece of the wealthy individual, so those individuals tend to be a bit paranoid about getting taken advantage of.”

Faupel concurred: “Building a business is more about building a value, through a service, and building a collaborative relationship,” she said, adding that with this approach, your message gets out there for a minimal investment.

A key element of the relationship is transparency. “Transparency builds trust,” said Friedman, adding that designers have to earn the right to be heard, and then walk that fine line between letting the client dictate what they want or what should be done, and expressing what the designer knows will work.

“I’m very honest with clients,” said Brown. “We bill on an hourly basis, and each hour is detailed in the invoice, so they can see exactly what we did. They do pay attention. You also need a set of systems for your project and your business, so you know exactly what’s going on every step of the way, with your project and budget. You set the expectation for them: you tell them how it’s going to be; you don’t let them take over the system. They have to build trust in your system…  It all comes back to trust. Once you have that, you have them forever.”

Friedman said asking questions is critical in the process. “We don’t do this enough. Too often, we’re focused on what we’re selling. Do your homework and be ready in that initial meeting to ask five great questions that have nothing to do with what you’re selling, your product, brand, platform, service, etc. These questions should relate to the client’s passions, interests and hobbies. These five questions will build trust faster than anything else. And do this with your existing clients, too. You’ll deepen your relationship with them. And once you understand what they’re passionate about, the better you can translate these passions into design elements.” 

Faupel concluded that paying attention to the trends, being mindful about the dynamic nature of luxury and how it’s evolving are important, as well as setting a standard in your own life.

“Often, people make judgments about how they want to live based on how you, as a designer, live,” she offered. “Having people into your home is more chic and more prevalent than ever, and entertaining graciously, having a beautiful table, etc., makes luxury more inclusive rather than exclusive. Bring your client into those experiences. Sharing this shows your sophistication, builds affinity and community. People don’t work with us because of what we do, they work with us because of who we are.”