The five-star Ham Yard Hotel in Soho, London, provided an appropriate setting for an in-depth look at the role of luxury in optical practise at the Nikon Business Conference 2023. Outside of presentations by three expert speakers, there was ample opportunity for attendees to take in the opulent surroundings and consider the value of luxury service.
After a welcome and some scene setting from Amy Baig, head of education and professional services at Nikon Optical UK, the first speaker took to the stage. Dr Paul Russell is a consumer behavioural psychologist and co-founder of Luxury Academy, a business specialising in enhancing client experience in up-scale retail settings.
Russell delivered what proved to be a most entertaining masterclass on the psychology of luxury, full of interesting digressions but centred on practical advice for an audience largely made up of independent practice owners. He made the point that luxury means different things to different people but is, above all, a feeling that cannot be faked.
‘I grew up in India, in an area where rain was a luxury,’ said Russell. ‘But when I came to England as a schoolboy that was reversed. To a man who travels constantly for work, two days at home can be a luxury. It could be said that the pandemic made travel a luxury for many people again. Luxury evolves. Luxury is a feeling. I can get a fake Rolex and get the same attention from people as with the real thing but I won’t get the feeling of luxury that comes with the real thing.’
Life of luxury
Russell discussed the etymology of the word luxury, then considered whether there was a link between luxury and scarcity, before coming to the conclusion that ‘luxury is what is perceived to be luxurious’. He then described the five-second psychology of arriving in a retail environment, with potential customers noting how they are greeted, how the space looks, how it smells, and how they are treated. From a practical point of view, he advised audiences to make their practices’ entrance spaces as wide and uncluttered as possible.
Going into detail on psycholinguistics and the use of language to influence, build rapport and activate buying behaviour, Russell outlined the importance of avoiding conflicting conversations where cues are misinterpreted, the technique of cognitive reframing, and communicating through verbal, tonal and physiological means. He also noted that lowering one’s voice by an octave can help build trust.
The second presentation of the day was delivered by Adam Moore, retail sector director at global research company Ipsos. Moore began by asking the audience what they felt was happening on the high street. Customers were described by one attendee as ‘more demanding and self-focused’ than before the pandemic, while another said there were ‘plenty of people but they aren’t spending’.
Moore then presented some data that pushed back on the often-heard assumption that the high street is dying. Moore said that before the first Covid-19 lockdown in March 2020, 30% of non-food purchases were made online, a figure that understandably doubled to 60% by May of the same year. The latest figures from Ipsos showed that in September, 2022, the online share had dropped back to 39%.
This, Moore noted, meant that the pandemic had not been a lasting disaster for the high street and many customers, who had been forced online during lockdowns, had returned to bricks-and-mortar retail. Additionally, those returning had favoured high street retail locations over retail parks and shopping malls; good news for the majority of optical practices.
All practices with people in attendance at the conference had taken part in mystery shopper research run by Ipsos to assess customer service. During a break in proceedings, attendees were given a report detailing their practice’s performance, starting with initial impressions of the practice’s website and social media through to patient visits and any post-visit communications. The overall findings from the project were presented by Moore in the second half of his presentation.
Multi-sensory experience
Dr Darren Coleman drew the conference towards a close with a detailed examination of multisensory brand experiences and how they can help practices deliver distinct value that customers are prepared to pay for.
‘Multisensory comprises hearing, smell, vision, touch and taste,’ said Coleman. ‘The senses work together like an orchestra in the brain to produce an understanding of the environment.’
Coleman said Harrods, with its iconic logo, building and green colour, was an example of effective visual branding, while the Champions League piece of music played at matches in the highest level of European club football exuded ‘premiumness’.
During a Q&A session after his talk, Coleman said that ‘scent is the most important sense’ in creating a multisensory experience in retail as it is the only sense that goes to the memory part of the brain. He went on to say that he recommended lavender for retail environments as it will slow customers down and can be used in conjunction with calming music to that effect.
The event concluded with an evening of socialising in the hotel’s 10 pin bowling alley.