Luxury Institute debuts new Relationship Mastery Index to address weakening brand-client ties

February 19, 2026

Trust and steady tenure within luxury is key for stable and successful client relationships. Image credit: Shutterstock, Iryna Inshyna

By Luxury Roundtable Intelligence

Leading market researcher Luxury Institute is tackling the problems of low productivity, high employee churn and disruption of valuable client relationships with the launch of its Relationship Mastery Index.

The index, also known as RMI, is a relational intelligence assessment that quantifies how effectively individuals can build and sustain trusted client relationships. Claimed to be scientifically tested and validated, the index is likened an MRI for trusted client relationship skills.

“The industry is failing to correctly identify, select, onboard, develop and retain associates who have a high propensity to deliver the critical behaviors that inspire clients to purchase more and consent to building trusted relationships,” said Milton Pedraza, CEO of Luxury Institute, Miami, Florida.

Measure and treasure
The Relationship Mastery Index statistically correlates with individual employee KPIs and total brand KPIs, per Luxury Institute.

RMI also aligns with EEOC and UGESP requirements and demonstrates no bias, with results easily explainable to candidates and stakeholders, according to Mr. Pedraza.

Luxury Institute research shows that traditional hiring methods emphasize resumes, product knowledge or personality traits, while overlooking the relational intelligence that wealthy clients demand.

The result is poor “luxury fit,” inconsistent performance and broken client trust when turnover occurs, Mr. Pedraza said. The net result is diminished client loyalty.

In this interview, Mr. Pedraza outlines the current state of luxury brand relationships with clients and alarming employee attrition in luxury, financial services, retail and hospitality. He also discusses the five pillars of relationship mastery and what it takes to have a successful client relationship.

Please read on:

What is the current state of luxury brand relationships, if you had to assess the market?
According to Luxury Institute research with HNW and UHNW clients, as well as research from other credible sources, the state of the luxury market is very challenged.

Clients today feel better about product quality and prices, but feel that the front-line experiences continue to be transactional, boring or downright off-putting.

Often, just when they are beginning to establish a trusted relationship with a brand ambassador, the ambassador leaves. That’s true in luxury retail, financial services, automotive, and hotels and resorts.

What market needs are you addressing with the launch of the Relationship Mastery Index?
We are addressing the massive problem of low employee productivity and high turnover that combined lead to lost clients and lost sales. It’s rampant in the luxury industry.

The root cause is that the industry is failing to correctly identify, select, onboard, develop and retain associates who have a high propensity to deliver the critical behaviors that inspire clients to purchase more and consent to building trusted relationships.

The Luxury Institute has been known for its five pillars of relationship mastery. Can you elaborate?
Over two decades, we have always believed in being the voice of the HNW/UHNW clients through our empirical research.

As part of that we have asked them qualitatively and quantitatively annually to identify the attributes and behaviors they require from brand ambassadors to be inspired to purchase more and build a trusted relationship in any luxury and premium goods or services category. They consistently describe the same five pillars: trustworthiness, expertise, empathy, kindness and creativity.

Based on those five pillars, we have designed and deployed our luxury and premium sales and service training programs. We have achieved documented sales increases with top-tier brands.

Now our luxury brand clients have requested that we turbocharge the training opportunity by helping them hire and develop candidates and employees up front who have a high propensity to be relationship builders from day one.

Milton Pedraza

What is the state of talent within luxury brands and retailers? Especially on the retail floor, the annual churn is still quite high, right?
The churn is approximately 30 percent in financial retail, 35 percent in luxury goods retail, 50 percent in luxury automotive and 80 percent in luxury hospitality. Those are averages. Some locations operate with 100 percent turnover. It’s a crisis.

Who are you targeting for the new offering? Which sort of companies and sectors would benefit?
I mentioned the four categories. We are focusing on luxury at first, but have received requests from premium and aspirational brands that have dozens and hundreds of stores that need help. The five pillars are universal.

What denotes success in a client relationship?
The associate needs to have the mindset and behaviors that make clients not only feel safe, but to feel truly cared for as human beings.

Clients need to trust that the associate is there to protect, enhance and promote their best interests. That’s what forges a successful client relationship.

Who should be calling you for the Relationship Mastery Index?
We have been having deep discussions with heads of retail, heads of sales, heads of human resources for a couple of weeks now.

Often one will reach out and gather them all as a senior team to get the details and implement. It has been very gratifying to see such a large number of inquiries in just a few days.

Share your thoughts. Click here

Luxury Institute debuts new Relationship Mastery Index to address weakening brand-client ties

Luxury Institute debuts new Relationship Mastery Index to address weakening brand-client ties

Save the date: April 15: Luxury Women Leaders Summit 2026

Cautious Chinese buyers, putting global luxury on notice, divert spend towards homegrown brands

Luxury must rethink the codes of masculine status

Content from Luxury Roundtable’s Luxury Outlook Summit 2026 and AI in Luxury Summit 2026 New York

Only 2 days left! Register for Luxury Outlook Summit NYC or AI in Luxury Summit

6 days left! Register now for Luxury Outlook Summit New York

How accessible luxury brands can leverage new loyalty strategies without eroding brand equity

Why AI will be key for growing a luxury business in 2026

5 trends that will define small-business marketing for luxury in 2026