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New York, NY—The November Wealth Report from the Luxury Institute says wealthy customers want to engage with luxury firms. A sizable majority of respondents to its recent survey about clienteling found 86% of respondents don’t mind providing personal information to a retailer if the result is superior service. More than three-fourths (77%) are willing to share an e-mail address, and half are willing to share product preferences as well as important dates like birthdays and anniversaries.

Most high-income customers (70%) believe in loyalty or reward programs, 69% cite outstanding service and experience as the reason they’d be most likely to recommend a luxury retailer to friends and family, and 68% wouldn’t return to a luxury boutique that fails to provide outstanding service.

Yet despite the fact that customers clearly want to engage with a luxury retailer, the Wealth Report says both customized email and loyalty programs have fallen off in the last year. Respondents reported that email notifications of early sales or new products declined noticeably this year as compared to 2010, as have special events for VIP customers and priority access to pre-sales.

Finally, though they can easily afford to pay for it, this group says free shipping is the single most important “special touch” a luxury firm can offer, followed by a lifetime guarantee on its products.

Separately, a Luxury Institute a white paper identified 12 distinguishing characteristics of a successful luxury firm in the 21^st century, and how these traits have shifted from traditional old world luxury. For a free download of the entire white paper, click here. Here is an overview:

1. From arrogant and snobbish to welcoming and nurturing. Old world luxury companies dictate product and services in a one-way conversation, believing that a reputation established through the ages will keep customers loyal to the brand even in the face of poor service. By contrast, successful 21^st century luxury enterprises seek to engage with customers and align their goals with customer needs for a seamless experience.

2. From “brand validates the customer” to “and the customer validates the brand.” It used to be that hardworking individuals from humble beginnings bought traditional luxury brands as a badge of success once they’d achieved wealth. Today, however, social media allows consumers to validate the brand. Since the only thing brands can control is the customer experience, it has to be flawless because it’s now transparent.

3. From imposed to earned price premium. Luxury prices once stood for quality craftsmanship, design, and service, and consumers were willing to pay. But in the last boom period, many old luxury brands charged a premium for suboptimum products with the name slapped on. When many brands were forced to offer fire-sale discounts to move inventory in 2008, consumers said “no more” to inflated prices and they now demand legitimate justification for the cost. Luxury Swiss watchmaker IWC is cited as a classic example of a company that has earned its price premium according to 21^st century luxury rules.

4. From command-and-control management to team-based innovation, testing, and learning. In trying to protect the integrity of the brand, old-world luxury leaders often are insulated from consumer or employee ideas. In the 21^st century, however, successful luxury companies like Apple value team-based innovations and active testing with consumers.

6. From bricks and mortar to relationships as key assets. In the old luxury model, priorities were placed on physical property—factories, warehouses, stores, and products—while employees, especially in sales, were easily replaced. Expansion came through brick and mortar; cost reduction and restructuring were the tools of choice during economic hardship. But 21^st century luxury’s objective is creating long-term trust and collaborative relationships between customers, employees, suppliers, partners, and society at large.

7. From economies of scale to economies of customer share. Old world luxury companies were focused on wringing cost savings and improving margins, regardless of the impact on customer relationships; 21^st century luxury nurtures customer relationships with a laser-like focus on customer retention, cross-selling and up-selling.

8. From too many products in multiple categories to unique or exclusive products in a few categories. Many old-world luxury companies began as an innovator in one particular area, but over time the search for growth pushed them into areas where they had little or no expertise. Successful luxury companies today, such as IWC, Hermes, Chanel, Graff, Buccellati, Harry Winston, and others maintain their focus on authentic luxury.

9. From fear of customer metrics to embracing them. Most old-world luxury companies rely solely on Industrial Age metrics such as sales per square foot or inventory turn, not taking customer metrics into account. 21^st century luxury firms, however, understand that customer dialogue is essential and they rely on it for rapid adaptation.

10. From disconnected customer interaction to seamless journeys. In an old world luxury company, the shopping experience may vary wildly from store to store. Shop with a successful 21^st century luxury company such as Ritz-Carlton hotels and the experience is seamless in any interaction with the brand.

11. From traditional luxury marketing to including word of mouth. Old-world luxury companies—especially in the jewelry and watch sector, according to L2’s Digital IQ Index—rely on the traditional vehicles of marketing, such as upscale print, trunk shows, and sponsorships. Many don’t understand or haven’t embraced digital marketing, but in a few years will have to not only compete with the best online marketers but also surpass them. 21^st century luxury, however, knows that customer endorsements are the ultimate form of marketing.

12. From socially disengaged to socially responsible. The economic downturn has had a profound impact on how wealthy consumers think. Many have been shocked or angered by not only their own loss of wealth but also the even more negative effects of those truly in need. Combined with a rising concern for the environment, these consumers are socially conscious in a way they weren’t before. Successful 21^st century luxury companies recognize that they need to be transparent in thought, word, and deed, and find new ways to be charitable, with documented results for those they’re helping.

To request a download of the entire white paper, click here.