(luxury) retail is sitting on a gold mine, and they don’t know it

Introduction: A Flagship Store Losing Its Local Touch

In 2024 a luxury brand operating a 1 300 m² flagship in Barcelona entered a period of turmoil. The store offered a multi‑category assortment (leather goods, small leather goods, ready‑to‑wear, shoes and childrenswear) and employed 65 staff (30 % Catalan speakers, 30 % Chinese speakers and 100 % fluent in Spanish and English). With five managers overseeing operations, the store boasted high visitor numbers, averaging 1 400 entries per week (≈ 250 a day). Yet the numbers masked a critical weakness: 97 % of sales were to non‑locals, and 80 % of that non‑local business came from Asian tourists. The conversion rate hovered at only 8 %, despite satisfactory average transaction values.

The brand was then run as a franchise by a local Catalan family. When head office decided to end the franchise and regain control of the store network, the local factory closed and suppliers lost business. Locals felt betrayed and boycotted the brand, replacing domestic shoppers with busloads of tourists. High traffic but low conversion meant the brand “ran on fumes”; it depended on tourist footfall rather than relationship‑driven sales. Client advisers, believing that tourists would never return, stopped collecting client data and stopped using the CRM. Managers insisted on “tick‑the‑box” tasks (fill in the CRM, complete follow‑ups), but associates’ motivation deteriorated.

The situation typifies a broader challenge in luxury retail. Research from BoF and McKinsey shows that 75 % of shoppers are likely to spend more after receiving high‑quality service, and over 20 % of missed in‑store sales at a prominent US retailer were linked to poor engagement or unavailable staff*. Associates are the differentiator: human interactions, not store décor or digital gimmicks, drive delight and loyalty*. Yet many retailers treat clienteling as a compliance exercise rather than an opportunity to build trust.

The Challenge: Overreliance on Tourists and Underused Data

The Barcelona flagship’s metrics reveal a dangerous imbalance:

· Traffic ≠ transactions – 1 400 visitors each week yielded an 8 % conversion rate. High footfall did not translate into sales because groups of tourists entered together but purchased individually.

· Foreign reliance – 97 % of revenue came from non‑locals, with 80 % of those shoppers being Asian (mostly Chinese). Locals, hurt by the franchise termination and the factory closure, no longer trusted the brand.

· Unmotivated staff – Advisors believed tourists would not return; locals expected to be addressed in Catalan. Without language support or training, advisors saw little value in capturing contact details, so CRM adoption stalled.

These challenges are not unique. Studies show that 64 % of shoppers are more likely to visit stores with knowledgeable associates, and 75 % spend more after receiving high‑quality service*. Yet 71 % of consumers expect personalisation and 76 % feel frustrated when it is missing*. Modern consumers are willing to share data when they see the benefit – 90 % of users will share behavioural data if it improves their experience or saves them money* – but staff must be trained to collect and use that data meaningfully.

Data vs. People: Why CRM Alone Isn’t Enough

Head office initially responded by focusing on compliance metrics: CRM completion rate, collection rate and outreach tasks. But clienteling is more than a database. As Proximity explains, traditional CRM systems store data but often fail to empower store teams to act on it in human ways; clienteling bridges that gap by enabling one‑to‑one interactions driven by real‑time insights*. For luxury shoppers who seek exclusivity and recognition, data without empathy is meaningless. A clienteled customer becomes 4–5 times more valuable than one who only receives generic marketing*.

Industry statistics underline this paradigm shift:

· 89 % of business leaders believe personalisation is critical to future success*.

· Personalisation leaders generate 40 % more revenue than their peers*, proving that data‑driven service directly affects the bottom line.

· 85 % of consumers still prefer brick‑and‑mortar shopping*, but they expect experiences that justify leaving their homes. Personalised attention is no longer a luxury but a baseline expectation.

These insights demonstrate that numbers are not enough. The goal is not merely to collect data but to understand it and act on it authentically. Coaching becomes the bridge between numbers and people, turning data into behaviour.

Listening to the Voice of the Customer: Using NPS as a Tool

Soon after joining the Barcelona store, the brand launched the Net Promoter Score (NPS). NPS asks customers, on a scale of 0–10, how likely they are to recommend the brand. Scores of 9–10 are Promoters who may advocate for the brand; 7–8 are Passives; 0–6 are Detractors. The store’s NPS results were guarded by the general manager, who personally contacted detractors. While this secured control, it withheld valuable feedback from the team and reinforced the notion that clienteling was a managerial task.

To shift the focus from numbers to people, we adopted a simple rule: positive feedback must be shared. Each Saturday we printed 10–15 comments from Promoters and dedicated the briefing to “the client’s voice.” Before reading a comment, I would ask the advisor whether they remembered Mr. or Mrs. X. Often the answer was no. I would then read the customer’s heartfelt praise of the advisor and reveal the NPS (often a 10). The team applauded. Advisors began to realise that, while they forget hundreds of faces, customers remember them when they feel valued.

This practice served several purposes:

1. Recognition – Celebrating individual success publicly reinforced positive behaviours. Success breeds success.

2. Motivation to collect data – To thank customers for their feedback, advisors needed contact details. Collecting an email or phone number became a means to an end, not a KPI.

3. Human connection – The exercise reminded the team that the gold mine is not in the CRM but in human relationships.

Over time, advisors expected Saturday feedback. They wanted their names mentioned. To ensure they could respond to Promoters, they started collecting basic data without being prompted. Our completion rate and data collection rate increased organically. Advisors felt that the brand trusted them to build relationships rather than simply fill forms.

Coaching as a Catalyst for Behavioural Change

Coaching is often confused with training or instruction. In my view, coaching is an attitude – a commitment to understanding why results occur and empowering people to change. In the Barcelona case we focused on four principles:

1. Celebrate successes: Publicly recognise when advisors connect with customers. According to BoF‑McKinsey, quality interactions dramatically influence spending*. Applause is a powerful motivator.

2. Provide dedicated space for connection: Carve out time in the schedule for outreach and follow‑up. When associates know that clienteling is part of their role, not an extra task, they take it seriously.

3. Coach, don’t command: Rather than telling advisors to fill in CRM fields, ask them how they felt during a sale, what they learned about the customer and how they can deepen the relationship. This encourages curiosity and empathy.

4. Treat your team like clients: “Cherish the team the way you want them to cherish their clients.” When managers demonstrate appreciation, honesty and authenticity, advisors mirror those behaviours with clients.

These principles align with research showing that knowledgeable associates attract more visitors and increase spending*. Moreover, training and upskilling staff are top priorities for retailers in 2025*. Investing in people is not optional; it is strategic.

Results: Turning Data into Relationships

Within eighteen months, the Barcelona flagship achieved a remarkable turnaround:

KPI : Before coaching & After coaching

1. Change Share of local business 3 % 34 % (+31 % pts )

2. Completion rate (CRM data captured) Low 100 % ↑ to full capture

3. Outreach rate (follow‑up contact) Minimal 100 % ↑ to full outreach

4. Retention rate Baseline Tripled 3×

5. Conversion rate 8 % +22 % vs baseline Significant lift

6. Behavioural change Advisors disengaged 100 % engaged Cultural shift

Beyond numbers, the culture shifted. Advisors started to see themselves as relationship builders, not salespeople. Locals who had boycotted the brand slowly returned, noticing the renewed warmth and personalised service. Tourists, once treated as transient, became long‑term customers who recommended the brand to friends back home. The NPS comments captured this transformation; customers appreciated being recognised by name, invited back for private appointments and followed up after purchase. Staff morale improved, and turnover decreased.

Key Takeaways for Retail Leaders

· Data is not everything; analysis is. Metrics such as NPS, completion rate and conversion are tools, not ends. Use them to identify causes and design human‑centred solutions. Without understanding the “why,” chasing numbers becomes demotivating.

· Personalisation is a strategic imperative. Nearly nine out of ten leaders see it as essential*, and personalisation leaders achieve 40 % higher revenue*. High‑quality human service drives spending*, and 64 % of shoppers actively seek knowledgeable associates*.

· Invest in coaching and training. Training store associates is among executives’ top priorities in 2025*. Staff shortages make retention critical; losing a frontline employee can cost $2 000–$10 000*. Coaching creates loyalty and reduces churn.

· Empower associates with tools that support human interaction. CRM systems alone are insufficient; clienteling platforms that provide real‑time customer insights enable one‑to‑one engagement*. When associates see the full customer profile at their fingertips, they can deliver the high‑touch, data‑informed experiences that luxury shoppers expect*.

· Harness customer feedback. Sharing positive NPS comments galvanises teams. Encourage advisors to thank customers personally; 76 % of consumers say personalised communications prompt purchase consideration*. When clients know their voices are heard, they feel connected to the brand.

Conclusion: Mining the Gold of Human Relationships

Luxury retail sits on a gold mine hidden in plain sight: the human relationships between associates and clients. The Barcelona flagship’s story demonstrates that coaching, not commands, unlocks this treasure. By listening to clients, celebrating successes, and empowering staff to build genuine connections, the store transformed from a tourist‑dependent outlet into a vibrant community hub. Data provided the map, but analysis and empathy unearthed the gold.

For retail managers, CRM managers, clienteling managers, CEOs, managing directors and training managers, the message is clear: invest in people. Train your associates to read data through the lens of human stories. Celebrate their achievements. Provide the tools and time they need to connect authentically. When you cherish your team the way you want them to cherish your customers, you turn visitors into loyal advocates and revive local business in even the most challenging markets.

*sources : endearhq.com, proximityinsight.com, businessoffashion.com,