The New York-based Luxury Institute recently released its innovative 2018 Emotionally Intelligent Brand Index, featuring annual rankings and ratings for leading luxury women’s fashion brands by affluent U.S. consumers. The Emotionally Intelligent Brand Index methodology was developed using 10 years of proprietary, quantitative and qualitative research with affluent consumers, front-line associates, managers and executives.
According to the nationally representative sample of U.S. affluent consumers, Chanel is overall the most emotionally intelligent brand followed closely by Louis Vuitton. Chanel earns an overall score of 7.14 out of a maximum possible 10. Chanel’s score is driven primarily by the two elements of brand expertise, which account for 50% of the score weighting, including quality of products and customer service experience. Chanel ranks among the top two contenders for quality of merchandise and is ranked #1 for its customer service experience. The survey distills the critical components of brand equity, according to luxury consumers, in the 21st century.
On the elements that drive human bonds and emotional connection, which account for the other 50% of the overall score, Chanel, like most of the luxury fashion brands, slides down the scale. In empathy (understanding a client’s needs) Chanel ranks #7. On trustworthiness (serving the client’s interests first) Chanel ranks #3. On generosity (demonstrating generosity and kindness to its employees, clients and society at large) Chanel is ranked #13.
In interesting contrast, Stella McCartney, while ranked #17 on quality of products and #6 in customer service experience, ranked #1 in empathy, #4 in trustworthiness, and #1 in generosity and kindness. Affluent consumers tell Luxury Institute, in no uncertain terms, that a brand must deliver on both expertise and emotional intelligence to thrive in today’s marketplace. The EIBI metrics are a map for discovery directly from the voice of affluent consumers, who account for 20% of a brand’s client base, 70% of the total revenues, and almost all of the profit margin. The opportunity for each brand rated is to fine-tune and strengthen its brand equity through positive social behaviors.
“We used to ridicule politicians when they said that corporations are people too. We also used to laugh at luxury brands that sold sneakers,” said Milton Pedraza, Luxury Institute and EIX CEO. “Today affluent consumers across all generations, but especially Millennials, think of brands as organic, living entities comprised of the purpose, values and behaviors of the people who lead them and who represent them at the front lines, across any channel. A brand, today, is known well beyond its products. Just as with individuals, if a brand today cannot deliver more than expertise and deeply lacks emotional intelligence, or simply has an emotional intelligence deficit that is clear to clients, it is at a distinct disadvantage in the probability of long-term success or even survival. Unfortunately, some brand leaders, especially in luxury, would rather delude themselves than embrace, or crave, candid customer feedback and take massive positive action.”
The EIBI survey also provides rated brands with their full, detailed scores by demographic customer segments, as well as the ratings of their competitive set. Brands rated and ranked are in alphabetical order:
- Alexander McQueen
- Balenciaga
- Bally
- Bottega Veneta
- Burberry
- Chanel
- Chloé
- Christian Dior
- Dolce & Gabbana
- Donna Karan
- Fendi
- Giorgio Armani
- Givenchy
- Gucci
- Hermès
- Louis Vuitton
- Marc Jacobs
- Michael Kors
- Miu Miu
- Prada
- Ralph Lauren
- Saint Laurent
- Salvatore Ferragamo
- Stella McCartney
- Tory Burch
- Valentino
- Vera Wang
- Versace
The EIBI survey is an extension of the Luxcelerate high-performance client relationship system pioneered by Luxury Institute 10 years ago using advanced neuroscience, high performance science, and tech science. Luxcelerate helps to transform the brand’s executives, managers and front-line teams into emotionally intelligent, high-performance relationship builders. By optimizing high humanity with high performance, Luxcelerate has dramatically improved customer data collection, conversion, retention rates and profitability for small, medium and large brands across the world.
The Institute surveyed a nationally representative sample of over 1,200 responders with a minimum of $150K annual household income across several brand categories most consumed by affluent consumers.
Source: Globe News Wire