Measuring and managing service performance of luxury stores: development of a balanced scorecard

Abstract

Customer satisfaction through service excellence has long been a neglected topic in luxury stores. Today, however, luxury firms need to differentiate themselves at the point of sale by reinventing and restructuring their service offers. An optimal and brand-consistent service performance can only be ensured by a structured management approach. This paper aims at developing a balanced scorecard for the optimal management of the service in luxury fashion stores. The findings are drawn from literature analysis and are empirically validated by semi-structured interviews with German and Swiss industry experts of global luxury brands. The presented scorecard builds the first scholarly performance management tool that is adapted to the particularities of the luxury market.

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