3 Ways to Provide Hyper-Personalization in Luxury Brand Marketing

Luxury brand marketing doesn’t just involve communicating and delivering products of a specific brand. It also involves creating and maintaining an image for your company that is based on a core set of values. To win over the luxury consumer, you must use hyper-personalization to focus on the nuances of your prospect’s interests.

What is Luxury Brand Marketing?

Luxury brand marketing is the business of promoting and selling the luxury goods of a high-end company. For some luxury brands, that could mean showing your customers that your company and products are novel and iconic. For others, they may want to show their customers that their company and products are unique and creative. Hyper-personalization is one of the best ways to sway the luxury consumer.

Shifting Perception of Luxury

The luxury market is expected to grow 5% annually through 2020. According to Forbes, this growth stems from Millennials’ evolving relationships with luxury brands.

Initially, luxury brands wanted to create elite and exclusive experiences for their consumers. Before, it was about creating spaces for customers to get high-quality products with high-quality service. Today, people still feel the need to be part of a select group but they also want to feel uplifted. They want to support what brands represent. This is a shift in luxury brand marketing. Your value as a brand no longer comes from your name recognition. It is about the personal connections you make with your customers.

Traditional luxury goods, in that sense, are becoming less relevant. In this “new normal” luxury market, consumers want to feel immersed in a highly personal experience. People still want to get something unique, but they don’t want to purchase something based on the value of the brand. Although they still want luxury goods, they also something that makes a personal value of theirs into a tangible reality. Luxury brand marketing now requires brands to forge an emotional connection with their consumers, and to understand their personal preferences.

Looking to target wealthier customers for your brand? Download The Luxury Marketer’s Guide to Engaging and Winning HNW Customers.

Personalization vs. Hyper-Personalization

Personalization in marketing allows you to collect the consumer data that’s more general: customer’s name, location, and purchase history. While this information is useful, it only gives you a vague impression of who is buying your products.

Hyper-personalization in marketing, on the other hand, allows you to receive real-time customer data so you can personalize messages you send to your customers, or potential customers. For hyper-personalization, you need to know as much as possible about your buyers, including their capacity to spend and their interests. Fortunately, you can get this regularly updated information from Wealth Engine’s database.

As a result, hyper-personalization allows you to execute your luxury brand marketing strategy with pinpoint accuracy.

Incorporating Hyper-Personalization into your Luxury Branding Strategy

Hyper-personalization is now approached as a necessity in luxury brand marketing. But, how best can you begin incorporating it into your branding strategy? It’s important to hone in your efforts in the following areas:

1. Tailoring Your Messaging

If you want to appeal to different kinds of people, and understand their individual values, you have to communicate with them in ways that make them feel seen. When you hyper-personalize your messaging, you can show your customers how your values align with theirs. It is important to name, acknowledge, and appreciate your customer’s values. Then, you can clearly evaluate and articulate the ways you fit into their values and needs.

2. Leveraging Wealth Data

When you leverage wealth data, you can develop and engage with luxury consumers in a hyper-personalized way. Leveraging wealth data allows you to see how likely your new and existing customers are to make a purchase, and when. This helps you figure out what each individual will need in the future. When you have this tool at your disposal, you’re better able to anticipate and act upon their needs. You’re adapting your customer’s behaviors, and finding ways to be of service to their individual needs.

3. Communicating Your Purpose

It’s important for you to communicate to your consumers what you support, and what your greater intention is for your company. There is a new trend toward “goodness-based spending.” Today’s luxury consumers want to know that you are “honest, relatable, committed to doing the right thing, and follow sustainable practices.”

Consumers value organizations that seek to have a greater impact on the world. Not only do individuals still want their needs catered to, they now want the needs of the greater good catered to.

What do you stand for?

When you articulate the answer to this question, you will be able to find ways to appeal to potential consumers with your values.

 

Recurring Donors: Why you need them and how to get them

recurring donor

Salesforce and NextAfter hosted a webinar about the benefits of Recurring Donors. These donors can be a source of great value to nonprofits over time.

Recurring Donors vs. One-Time Donors

The 2018 Benchmark Report presented by NextAfter revealed interesting differences between the two groups. Recurring Donors are worth 5.4% more than One-Time Donors over their lifetime. In fact, in a single year, Recurring Donors give 42% more than One-Time donors. The longer the measurement period, the greater the gap in donations between them.

Your Recurring Donors are most likely those that donate monthly. Some organizations call them members as regular contributions are like a subscription.

Recurring Donors are more likely to stay engaged with you beyond their first year. This means you can expect to build a long-term relationship with them.

Why You Should Invest in Acquiring and Converting Recurring Donors

LTV is the most important metric in fundraising. Yet, it can be overshadowed by the value of a single donation.

According to NextAfter, LTV = amount given x time they keep giving

Development teams dedicate fewer resources to Recurring Donors. This is in spite of the fact that they generate a higher LTV.  The long-term relationship with a Recurring Donor makes planning and forecasting more predictable. Thus, your investment towards Recurring Donors should match the value generated by them.

More Recurring Donors in your database means greater savings. The longevity of their engagement means that you don’t have to keep spending on acquiring new donors. One-Time Donors usually cost more to convert as you have to do it many times over.

Additionally, studies have shown that nonprofits benefit the most from donations in installments. These are more valuable than upfront payments or waiting to accumulate larger sums.

From the donor’s point of view, it can be beneficial in two ways. Firstly, frequent giving lengthens the satisfaction received from the act. Research has shown that higher value contributions don’t always make for greater satisfaction. Secondly, there has been an overtaking of subscription models such as Netflix, Zipcar, etc.  Consumers are used to regular payments going out in smaller installments that seem less burdensome.

This means you can leverage this mutually beneficial arrangement. You can receive predictable payments in installments and provide greater satisfaction in exchange.

What to do Next

WealthEngine solutions help you find Recurring Donors from your database. We understand a person’s capacity to give, as well as propensity and intent. Our Wealth Intelligence comes from wealth data combined with demographics, lifestyle attributes, and affinities. This means you can see what causes your prospects support and how they support them.

WE Analyze can, in fact, help you examine your current Recurring Donors to identify patterns of traits. You can then create a custom model from these patterns. Further, the model helps you find more members using our Look-Alike tool.  This means your existing Recurring Donors can help you find new ones.

How to Acquire or Convert Prospects into Recurring Donors

A Recurring Donor is likely to stay with you if they remain engaged with your organization. The Benchmark Report has found that 38% of nonprofits have the same strategy for Recurring Donors and One-Time Donors. It pays to have a dedicated strategy and dedicated resources for Recurring Donors. Moreover, it is beneficial to have a separate value proposition for Recurring Donors.

You should pair a strong value proposition with a strong CTA (call-to-action). For instance, research has shown that “donate” is the most effective button to have on your website.  Recurring Donors should be able to understand how their contributions make a greater impact on your cause.

NextAfter says that there are other, universal best practices to consider:

  • Optimize your donation form so that it is short
  • Accept several forms of payment
  • Use multiple channels to communicate your message
  • Ask all new donors to become members. The momentum can push them to continue giving
  • Remind existing donors to sign up for a membership. This works even though it may seem counterintuitive

Customize Communication for Recurring Donors

Messaging should be more focused on cultivation rather than solicitation.

WealthEngine solutions can help you with this. We can help you keep existing donors engaged and convert them in real-time through our API. WealthEngine’s API allows you to feature on the spot messaging when a current donor engages with your channel. What’s more, the API integrates with Salesforce. This means you can cultivate Recurring Donors without added investments in technical infrastructure.

Learn More

Learn more about how you can convert your one-time donors into members. Fill the form on the right and a WealthEngine rep will contact you very soon.

Further Reading

WealthEngine Aware

How to Calculate Donor Lifetime Value to Predict Future Donations

Leverage Storytelling to Boost Year-End Fundraising

Are you a fundraiser for a cause or advocacy group that supports human rights, animal rights, or sustainability? Then you know that year-end giving can be crucial to your fundraising success.

Over a quarter of nonprofits studied by NonProfit Hub reported that 26-50% of their fundraising success can be attributed to year-end giving. A majority of nonprofits begin planning in October to execute year-end asks and marketing in November. Now is the time to get a head start on year-end activities and kick your fundraising plans into high-gear starting right now!

Getting started can definitely be a challenge. Several organizations struggle with understanding the right way to communicate their year-end ask. Once you have identified your donor or prospect list with the highest potential, it is important to communicate with them effectively.

Most nonprofits send two touches at the most during this season in order to avoid overwhelming their prospects. While this frequency may be enough to get their attention, you have to ensure that your message does not get lost in the clutter.

Employing storytelling tactics can be a more effective way to get your message across and cut through the clutter.

Why Storytelling is Effective for Year-End Communication

  1. Emotional Appeal– It all comes down to logic vs. emotion. An emotional appeal is more likely to be memorable. Prospects are surrounded by logic and it is easy for them to rationalize their way out of making a year-end contribution. Evoking an emotion makes them feel more compelled to make a difference to the community or animals being affected.
  2. Empathy– A story has the power to humanize your cause. Stories about animal rescue, preservation, or community upliftment have the ability to generate empathy in your prospects. They can find themselves relating to your story, making your year-end ask much stronger.
  3. Narrative Form– A story has dips and curves, a before and an after making it gripping for its readers or listeners. If you have a strong opening, you are more likely to keep your prospect engaged during your communication.
  4. Imagery– Words can create strong mental images, better yet they can be supported by actual images of the cause. Images make for a more visual appeal and visuals make messages more memorable, therefore creating a lasting impact.

Now that we understand the ‘whys’ of storytelling for fundraising, we need to understand the ways in which we can ensure that your communication makes the lasting impact that can resonate with a donor even after he or she has engaged with your message.

How to Optimize Storytelling to Boost your Year-End Fundraising

People tend to be more emotional around the holidays. This means that they are also more likely to feel generous during this season. The following ways will help ensure that your communication appeals to their spirit of generosity in the right manner.

  1. Communities- First and foremost, focus on the communities impacted. If your sustainability efforts have impacted the health of a particular community, if your organization has provided a platform or voice for a marginalized group of people, or if your impact has changed the lives of animals for the better; tell the story from their perspective.
  2. Authenticity- Use real images in your stories, be authentic. Use a voice that fits with your organization and its vision. Stock images or facts and figures have a way of taking away from the impact of your story.
  3. Testimonials- Take narratives from impacted communities to the next level by including actual testimonials from community members. Tell their stories in a way that showcases their lives before and after the impact of donations. Testimonials can add to the authenticity of your message. Using video can be especially powerful here as it can increase the level of engagement with the storyteller.
  4. Work in Progress- Even if you have projects that are still in process, share this with your prospects. Show them how far you have come, how much of a difference you have made. Include them in your plans, this is a great way to make an appeal. This provides a platform for you to show your prospects how their donations can help you get closer to your goal. Work in progress can create a sense of urgency in your prospects, especially when you tie your goals to end-of-year deadlines.
  5. Find a Hero- Telling the story from the perspective of impacted communities can be very strong. However, another technique for year-end asks is making your prospect the hero of the story. This can be used to show past donors the impact of their contributions and the potential difference that a future donation could make. Showcasing them as a central figure can prove to be inspirational. Donors gain great satisfaction from acknowledgment, this can be heightened during the holiday season, making them a hero and acknowledging their impact can help crystallize your message in an extremely effective way.

We hope these reasons for leveraging storytelling and our best practice tips help boost your Year-End Fundraising.

Learn More

Learn more about finding your top prospects and the stories that will deliver the most impact on them. Fill the form on the right and a WealthEngine rep will contact you very soon.

6 Top Trends in Luxury

The luxury goods sector has long been one that inspired envy, whether it’s the attached glamour or the high margins enjoyed by retailers.

However, reports have indicated that the sector has seen stagnation and a low, single-digit growth rate in 2016 & 17. Under these circumstances, it is important to identify, understand and embrace the trends that define the industry today.

We sat down with Neha Kapasi, our Luxury Sales Director, to discuss her perspective on Luxury Brand Marketing and how WealthEngine can help companies personalize their engagement with wealth and lifestyle data. Listen to the full podcast.

Luxury companies that have foreseen or even set the trend in some instances have benefitted from having a competitive edge and are poised for success. With more brands entering the market at every level of luxury, let’s examine the trends that can help set these purveyors of refinement apart.

1. Becoming Street Smart

When it comes to staying relevant, the luxury industry has it particularly hard. What’s trendy today could become irrelevant tomorrow. Millennials and other young consumers of luxury products and services have shown that they have a preference not only for the indulgent but also for the cool.

The ‘street-edge’ factor is becoming something that is prized among consumers. Fashion giants such as Balenciaga and Balmain have hired creative directors who can create the new cool. Meanwhile, other houses are benefitting from unexpected collaborations such as Louis Vuitton x Supreme and Gucci x Dapper Dan.

2. Communicating with Personalized Precision

BCG has predicted a massive revenue shift towards the top 15% of marketers who embrace personalization. Luxury customers are especially likely to respond to messages that are custom tailored to them. We have talked before about how no two millionaires are the same.

It is no longer enough to look at just wealth indicators for marketing effectiveness. Luxury companies need to have a more holistic view of customers including demographics, lifestyle attributes, and affinities so that their Account Based Marketing is more targeted and therefore more efficient. Luxury consumers, especially those from digitally savvy generations crave an authentic experience. This means that luxury companies need to embrace data and AI to deliver the most personalized, highly customer-centric experience- whether it’s travel, high-fashion, auto, or real estate.

3. Embracing Technology

Speaking of personalization and digitally savvy consumers, luxury companies that are early adopters of technology will emerge as winners. Technology needs to permeate not only communications but also the very delivery of customer experience.

Data and Artificial Intelligence can help identify patterns, create predictive models and customize messaging for Account-Based Marketing. An omnichannel approach enables luxury purveyors to reach consumers where they gather. For instance, Instagram is not just for influencers and aspirational followers. Of the 800 million Instagram users, 80% of them follow brands. 75% of users are reported to take action after seeing a business post.

Augmented and Virtual Reality can provide consumers a richer experience when it comes to product trial, creating shareable media and enjoying a more digitized in-store visit. Amazon and Zippin have set the trend of creating check-out free shopping, eliminating a bottleneck and further integrating online and offline experiences.

4. Weaving purpose into their business

Although this may be more a movement than a trend, purpose, and meaning are extremely important to millennials and younger generations who will soon represent 45% of the luxury market. It is common for luxury conglomerates such as Kering Group or LVMH to have corporate social responsibility units.

Today, however, the emotional and experiential preferences of millennials and gen-Z go beyond perfunctory social impact. It is important for luxury companies to build purpose in the very design of their business. This could be through using sustainable materials, reducing their carbon footprints, supporting or highlighting the work of marginalized communities, ethical sourcing, and treatment of manufacturing partners. Ultimately both clients and employees want to associate with responsible businesses.

5. Making Customers and Employees Feel Included

In keeping with the idea of responsible business, inclusiveness is another big theme in the luxury market. By its nature, luxury is not inclusive. Today, however, seeming out of reach makes brands feel unrelatable.

Fine jewelry companies such as Tiffany & Co and Bvlgari are each doing their part to become more inclusive. While Tiffany has created a modernized and minimalistic space within a new retail store, Bvlgari has created more entry-level pieces to be further within reach. Meanwhile, Gucci has made strides in the area of diversity. Gucci’s rising revenues are a classic example of success bolstered by embracing the current zeitgeist of the luxury industry.

6. Enabling Access as an Alternative to Ownership

Inclusivity is further accomplished by enabling not only ownership but also access to luxury experiences. Experience is the operative term in the luxury industry today, as reports have shown that HNWIs would rather spend big dollars on memories than goods.

This being the case, the sharing economy is also affecting the luxury sector. Luxury holiday homes and private jets have started to benefit from a market that is happy with access for a desired period over long-term ownership. This is bringing about the democratization of luxury consumption, which is predicted to be an ongoing trend.

Wealth Data Implementation for Successful Black Friday Marketing

wealth data

Data and marketing go hand-in-hand in today’s digital world. With the holiday shopping season coming up, the time for retailers to start their marketing activity is now. Black Friday and Cyber Monday are known for raking in exponential revenues year after year. American Marketing Association says there was an 18% rise in revenue from 2016- 2017 alone. With greater growth expected this year, retailers need to be poised for the season. Wealth data implementation may be the starting point for your Black Friday marketing.

What can wealth data do?

Wealth data can help put a spotlight on your next best customer and accelerate purchase patterns. Understanding customer spend-capacity and using it to plan marketing activities can yield higher revenues, ROIs and LTVs (Customer Lifetime Value). As a retailer, when you think of data, customer transactions may be top of mind. While this information is important, it is key to link it to spend capacity. For instance, a car dealership might have information on a customer’s last three purchases. However, understanding customers’ spend capacity allows them to upsell or cross-sell. This way they can now show customers models that may have seemed initially seemed out of reach.

Customer knowledge can be taken a step further. You can achieve this by understanding not only the capacity but also the inclination to spend. This helps you identify their best customers and prioritize marketing dollars towards these segments.

You can understand a customer’s inclination by having a holistic view of them. This includes demographics, behavior, lifestyle, and affinity. In fact, all of these insights can be provided by WealthEngine. This process of identification is the ultimate personalization strategy. Marketers who will adapt to personalization stand to gain a major competitive edge during the busiest shopping season of the year.

Moira Boyle, our Director of Luxury Sales and Commercial Strategy recently shared her expertise on a podcast. Implementation of wealth data into Black Friday retail marketing planning can improve retention by up to 5% and increase revenue by about 75%.

Listen to the full podcast here.

 

More Reasons To Implement Wealth Data Analytics

  1. You might have already invested in expensive CRM systems. Wealth intelligence can ensure that they are putting their CRMs to work. Transactional data can be supplemented by spend capacity and inclination in order to separate aspirational customers, one-time customers, and super-customers.
  2. Account Based Marketing (ABM) enabled by data empowers you to move customers to the top of the pyramid. Through personalization, you could be sending relevant Black Friday marketing messages to customers. As a result, you are not passively waiting for the next purchase to take place
  3. Manage high customer acquisition costs. Wealth data implementation allows you to find out who their customers really are. Thus, you can keep them engaged through a personal touch. Plus, you can reduce your spending across various channels.
  4. Demographic and lifestyle data help you understand what keeps customers coming back. Moreover, this data can be more informative than transactional data. This knowledge helps you increase customer LTV.
  5. 360-degree views of customers combined with real-time transactional data through WealthEngine API. This type of insight can help you accelerate purchase patterns.

Wealth Data Implementation for Black Friday Marketing Success

  1. You can also use wealth data to understand LTV. LTV serves as a guide for you to prioritize their marketing dollars. For instance, a fashion retailer can identify someone who is a regular customer. Their transaction data will indicate the frequency and value of past purchases. This data along with information on spend capacity and interests allows retails to envision their Lifetime Value. Thus, it indicates the level of marketing spend needed to keep customers engaged.
  2. This holistic view of the customer indicates what other products might interest them. This means targeted messaging instead of sending generic sales promotions. You can save marketing dollars by making messaging more relevant and finding opportunities for upselling and cross-selling.
  3. Identifying customers who can be promotors or advocates. This enables you to reach the customer’s inner circle. Therefore, wealth data empowers you to increase their reach without significantly increasing their marketing budgets.
  4. Wealth intelligence applied to prospect files can be an effective solution for converting leads. Typically, you may spend significant resources on lead generation. Understanding spend capacity and inclination allows you to send tailored offers that have a higher likelihood of conversion.
  5. Similarly, customer churn could be reduced through the implementation of wealth data. Using wealth intelligence on lapsed customers to approach them with relevant and targeted messaging could help convert them into buyers.
  6. Monitoring customer LTV also allows you to keep their market segments up to date. When LTV increases or decreases significantly, the prioritization of marketing efforts can also be updated accordingly.

Get in Gear for the Holiday Season Today

If you are a retailer in the process of preparing for the holiday season, tune into our podcast with Moira Boyle.  Learn more about the benefits of wealth data implementation. Further, you can also get best practice tips for successful integrations into your existing CRM.

Learn More About Millionaire Buyers

Download a free copy of our 2019 Millionaire Report.

WE API: Seamless, Scalable, Reliable Integration

Did you know you could be taking advantage of WealthEngine beyond richly layered profile searches, and fast-paced wealth screenings? WealthEngine’s powerful but simple API lets you look up the net worth of almost anyone in the U.S. in real time!

WealthEngine is the industry’s most trusted, API-accessible, cloud-secure platform for Wealth Intelligence. Our solutions enable fundraisers and marketers to drive highly private, high precision, campaigns that deliver high impact at lower acquisition costs. WeathEngine’s API is an industry benchmark. It can seamlessly integrate into an existing CRM/DMS to give you a richer, more holistic view of customers and prospects.

In our previous blog posts, we showed you how to use WE Prospect to find your next best customer or donor and WE Analyze to leverage predictive modeling to find quality leads. In this post, you will discover how API implementation can benefit you in several use cases such as event registrations, website signup, online to offline conversions of digital advertising, real-time transactional information, and alerts of top donors or customers and much more across both nonprofit and commercial sectors.

Let’s start from the beginning- If you are unfamiliar with the terminology, API stands for Application Programming Interface. For instance, think of a mobile or web application like Gmail, Twitter, or Facebook. These applications are powered by data, so you need a way to get data to and from the app. In order to talk to a database, there needs to be a programmatic way to communicate with that database or interface with that data. That’s what an API does – it’s a programming interface for an application.

Ready to learn more about what it means for you? Take a look at our example

Looking up actionable information on donors and customers in real-time may sound complicated. But, we’ve worked hard to keep the WE API really simple but powerful. There are just a few endpoints to know. The WE API may be called by multiple input values including; Name and Address, Email Address, and Phone Number.

Our API is simple to implement but secure, fast, reliable and scalable to use. As marketers or fundraisers, you may have information on previous engagements with a customer or donor. You may even have wealth data such as net-worth, homeownership, etc. This information becomes significantly more actionable when presented to you in real-time. When you have a large and growing database, our batch API makes it possible for you to quickly and frequently look up the information for multiple users at one time.

There are several compelling and effective use cases for WealthEngine’s API. For instance, when a customer or donor engages with your channel for sign-ups, event registrations, etc; the API can provide a meaningful picture of the prospect that goes beyond their username and email. As marketers and fundraisers, you can quickly use this information to take action.

This action may be in the form of delivering personalized messaging, a customized experience or showcasing the right products or causes that the visitor is more likely to engage with.

To learn more about use cases and best practice tips for implementation, download our ebook today!

For more information on API reliability, scalability, security and WealthEngine’s future API roadmap, join our webinar on September 5, 2018 at 2:00 PM ET. Register today!