The Luxury Institute, a New York-based consultancy, says companies catering to the wealthy are not doing enough to enhance their customers’ ...

The Luxury Institute, a New York-based consultancy, says companies catering to the wealthy are not doing enough to enhance their customers’ experience and are losing potential sales, profits and customer loyalty. “Wealthy consumers are among the savviest businesspeople and are fully aware of the capabilities and tools firms have to enhance their customer experiences,” said Milton Pedraza, chief executive of the Luxury Institute. He added: “high net worth individuals are sending a loud and clear message to marketers, fail to listen, and act, and risk losing the game to more nimble competitors. Luxury firms should be at the forefront of implementing high-touch/high-tech enhancements to create customized customer experiences.” The report found that companies selling to the wealthy such as private banks often fumble on obvious things like tracking customer complaints, preferences and customer value. Nearly three quarters (74 per cent) of wealthy respondents say that companies that use best practices should track all customer complaints and how they were resolved. And more than 65 per cent of the respondents say firms need to know individual purchasers' preferences. How long one has been a customer was important to 62 per cent, while 58 per cent say companies need a record of how many times a customer contacted the company and what happened. The ultra high net worth ($30 million in assets) are especially adamant, with 83 per cent saying companies should not ask for their information if they do not explain how it will be put to use. The report, entitled “Enhancing the Customer Experience of the Wealthy: Best Practices Report” surveyed 200 households, with $200,000 plus gross annual income, and net worth of $750,000 plus to examine how companies can best serve the affluent in two areas: customer information and customer recognition.