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.
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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.