10 Capital Campaign Feasibility Study Questions to Ask Before Launching

Wondering if a capital campaign is right for your nonprofit? Use these 10 capital campaign feasibility study questions to help you make your campaign goals realistic and achievable.

Capital Campaign Feasibility Study Questions

Before launching a capital campaign, you need to figure out whether or not your organization is ready to put your plan into action. But, how do you do that? How do you know if you’re ready? When conducting a feasibility study for your capital campaign, it’s important to gather info (from a third party) on the following:

1. What is your nonprofit trying to fund?

In order to assess how easy it’ll be to reach your goal, you have to define what your goal is. To determine your goal, it’s important to ask yourself:

  • What does our organization need?
  • What does our community need?
  • How and what can we create to serve current and future needs?

By articulating your intent, you’re creating a transparent channel of communication between yourself and the groups you wish to serve. This is also an opportunity for you to introduce your pre-campaign plan, and outline your fiscal goal and desired timeline. 

2. What is the fundraising history of your nonprofit?

By reviewing your fundraising history, you’re able to identify factors that may have influenced the success of your previous campaigns. So, it’s important to ask yourself: What worked? How can we improve? Reflecting on past experiences allows you to refine your existing campaign model, and account for potential obstacles. 

3. What are the strengths of your nonprofit? In which ways can you change?

Apart from identifying the strengths and weaknesses of your campaign process, it’s important to evaluate how your organization functions overall. So, ask yourself: What strengths does our organization possess that can be leveraged to meet our goal? What organizational hurdles do we face that keeps us from conducting business as usual?

4. Who does the proposed campaign goal serve? What immediate and long-term goals does it satisfy?

After outlining your goal,  it’s necessary to identify the groups your campaign serves. If community support is needed, you need to outline the ways in which your goal serves them. So, another crucial capital campaign feasibility study question to ask is: what do contributors get when they donate? Above all, determining this gives them, and major gift leads, the incentive to support your efforts.

5. How does the community perceive your nonprofit?

Positive perception is key in a capital campaign. If the community you’re raising funds for is in support of your efforts, they’ll want to donate and help you meet your goal. If not, even though you may gain major gifts during the quiet phase of your campaign, you’ll have no way of being able to wrap it up efficiently.

6. How can your nonprofit better serve the community?

Your capital campaign feasibility study questions should address your community’s immediate and future needs. So, it’s your responsibility to anticipate what their needs will be later on, and adapt your goal to meet those needs. By doing that, you’re showing them that your project is worth the investment because they can use the building or funded project you’ve set up at any given time.

7. Does the proposed campaign goal seem attainable? Why or why not?

The core capital campaign feasibility study question is: is your goal practical? If it is, you can begin taking actionable steps. So, you can start hiring additional resources and staff, and map out micro-goals for your campaign. But, if your goal doesn’t seem attainable, it’s important to revisit it and figure out how it can be adjusted to be achievable.

Do you want to create a data-driven capital campaign? Download our Data-Driven Major Gift Campaigns Workbook and take your fundraising to the next level.

8. Which existing board members or staff are already willing to be ambassadors for this campaign?

When attracting major gift leads, members of these major companies want to give to nonprofits they know. If you don’t have members of your board or leadership team as ambassadors, major leads may feel less inclined to give to your campaign. In other words, establishing a point of connection makes the gift collection process that much easier.

9. What additional support (resources, staff, etc.) does your nonprofit need to successfully carry out their goal?

Not only is your campaign made to satisfy your specific goal, but it also accounts for everything you’ll need in order to achieve it. This includes additional staff, materials, construction, events, and travel. So, what will you need that you don’t already have? Be sure to account for this capital campaign feasibility study question as you create your goals. 

10. What potential obstacles could your nonprofit run into during the campaign?

Before you carry out your campaign, you have to account for potential risks that may hinder your success. If you jump in without doing any form of risk assessment, your campaign is more likely to fail. If your campaign does fall apart, it takes nearly a decade for your organization to regain community credibility.

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WealthEngine’s consultants can guide you through other capital campaign feasibility study questions you may consider. Fill the form on the right to speak with one of our experts. 

Predictive Prospecting: Profiling Your Best Clients to Find New Prospects

The world of marketing is evolving. Instead of just wanting a high-quality product with high-quality service, consumers want more. But, what exactly do they want? How do we find out? Learn how different organizations use predictive prospecting to connect with donors and consumers.  

What is predictive prospecting?

 

Predictive prospecting creates a profile from your existing clients’ interests and other information. This information is the basis of a model to identify your next best prospects. It’s the first step in the sales process where you’re identifying potential consumers or “prospects”. The goal of prospecting is to create a database of potential consumers who have a greater propensity & capacity to give. By recognizing and communicating with these individuals, you’re more likely to form a loyal customer base.

But, predictive prospecting and predictive marketing aren’t new developments. They’ve been used in the past, but only now have companies funded their development. Currently, large sums of money are being poured into sales and automation technologies. These systems allow you to compile information on all your customers. They also provide you with tools that drive leads to become more aware of the market you’re breaking into. In other words, predictive prospecting helps you harvest and nurture your client base.

What do you need to do predictive prospecting well?

 

In order to do predictive prospecting well, it’s important to use the new data you have to create a positive impact on consumers. For instance, by using wealth intelligence and publicly available data, you can find unique ways to appeal to different people. So, after evaluating their propensity and capacity to give, you can talk to them in ways that highlight their interests. By doing this, you’re forging a deeper connection with consumers in such a way that makes them want to keep giving. Predictive prospecting, in that sense, is all about creating measured and personalized campaigns. 

By using wealth data to engage in predictive prospecting, you have the tools to:

  • Measure the cost of acquiring a given prospect
  • Determine the lifetime value of individual prospects
  • Create a deep, lasting connection with prospects
  • Check your campaign lift for individual prospect engagement

Not only is it important to appeal to each prospect individually, but it’s crucial to get the entire social network to participate in what you’re doing. That is to say, by going through and making sense of this information, you’re able to engage all clients. But, you’re not simply engaging them on a superficial level. You’re finding ways to connect in ways that highlight their values in relation to yours.

Looking to target more high net worth individuals? Download our 2019 Millionaire Report and get insights on how the average millionaire spends, invests, and gives.

Examples of Predictive Prospecting

 

The National Aquarium wanted to build a new wing, and focus their fundraising efforts on conservation and development. But, who was going to support the creation of this new wing? Who would want to help? After creating a capital campaign, the National Aquarium was able to personalize their outreach. By using WealthEngine’s data to help them look for donors, the National Aquarium was able to find and segment potential and existing donors into several audiences and create targeted messaging.  

They were able to identify individuals with investment and interest in marine life who felt compelled enough to donate. By creating personalized messaging, they developed a successful campaign. Not only did they connect with their new and existing donors, but they ended up acquiring one in the process. This donor, who was one of their largest contributors, is now their CEO. In that sense, successful prospecting and personalization don’t just allow you to find donors. They also help you forge deep connections with individuals, who want to invest their time, energy, and intention into your projects.

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Learn more about how you can leverage predictive prospecting. Fill the form on the right and a WealthEngine rep will contact you very soon.

Omnichannel Marketing Strategies in Luxury Marketing

omnichannel luxury marketing

Ever wonder how to retain your luxury customer? Today’s customer can jump from a retail environment to a digital one within a given day. How do you ensure that you engage them on every channel?

Omnichannel marketing strategies in luxury marketing offer a distinct way of interacting with your customers. It’s more personalized and dynamic.

Omnichannel marketing can be defined as a multichannel sales approach that provides your customers with a fully integrated shopping experience. They may be shopping online from a desktop or mobile device, by phone, or in a brick-and-mortar store. Omnichannel marketing strategies for luxury brands utilize all of those channels, but in a way, that best fits your customers’ needs.

The goal is to give your customers a seamless experience from channel to channel.

How Do Your Customers Prefer to Interact with You?

How do your customers like to shop for your product or service? What is the process they usually follow before they decide to buy from you? Do they use a desktop computer? A smartphone? A tablet? Or do they go to an actual, physical location? And how many times during the day do they switch between those devices?

Here are the more typical channels used in omnichannel strategies in luxury marketing:

  1. Smartphone: Assume your customers will use their smartphones as part of their buying experience.
  2. Email: Just about everybody uses email these days, even grandma. It’s an important element in omnichannel luxury marketing.
  3. Social media: Social media can be used to connect with customers at home or work and on multiple devices.
  4. In-person contact: Your customers can get immediate answers to their questions in person, along with your input on product and service options.
  5. Website: If you’re in business, you need a website. Period. It’s a primary channel of customer contact.
  6. Print: There are still people who like print media. More so, you can use a printed business card or catalog to encourage website or store visits.

Omnichannel luxury marketing reaches your customers in the way they prefer to interact with your business. They may use one channel or switch between them throughout the day. But you need to give them those choices.

Multichannel Marketing vs. Omnichannel Strategies

While omnichannel marketing uses multiple channels, multichannel marketing may not be omnichannel.

“Most businesses invest in multichannel marketing,” writes Aaron Agius in a HubSpot article. “They have a website, blog, Facebook, and also Twitter. While they use each of these platforms to engage and connect with customers, in most cases, the customer still lacks a seamless experience and consistent messaging across each of these channels. You can have amazing mobile marketing, engaging social media campaigns, and a well-designed website. But if they don’t work together, it’s not omnichannel luxury marketing.”

Omnichannel marketing uses the same channels, but in a way, that best fits your customer’s personal needs. Is your customer planning on visiting your physical store? Shopping on your website? Calling and ordering by phone? Interacting through a mobile app? Omnichannel luxury marketing is done in a way that creates an integrated and cohesive customer experience, regardless of which channel a customer chooses.

In the past, a retailer might provide a desktop experience, a mobile experience, and also a tablet experience. Now they must create an omnichannel experience that customers can use whenever they want.

Start by Targeting Your Optimum Luxury Market Customer

The more channels you utilize for marketing, the more likely it is your customers will find you. So having multiple channels does improve your marketing efforts. However, multichannel marketing alone does not ensure people are actually going to do business with you. It only gives you access to a bigger audience.

Omnichannel marketing can also help you get the most out of every channel. Omnichannel luxury marketing is a move towards more personalized communication with your consumers. This includes determining the best channels of communication to reach them.

Regardless of strategy, good marketing programs begin with sound data. You start by targeting the people who fit your customer profile. Those are the buyers with a much higher potential or propensity to purchase your product or service.

“Through data science and our database, we identify the group of individuals that we want to go after.“ said Patrick Bischoff, president of the Commercial Markets Group at WealthEngine. “At WealthEngine, we believe that our clients are best served by building a ‘cocoon of information’ around an identified individual. We provide this information cocoon for them.”

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

Omnichannel Luxury Marketing Is Personalized Luxury Marketing

When you’re trying to reach wealthy customers, you need to know what resonates with them.

“Obviously, we’re exposed to many, many forms of media these days,” said Bischoff. “It’s not simply the one-page ad in the luxury magazine or the TV ad for a certain brand. An omnichannel strategy can start with a direct mail message.

“At the same time, you already know the individual’s email address. Somebody who receives a direct mail piece then receives emails at a particular cadence. You’re trying to stay at the forefront of an individual throughout the whole process.”

That’s why it’s important that each part of your consumer’s experience is consistent. An item placed in a shopping cart through a mobile device should still be there when your customer accesses the cart on their desktop computer.

Omnichannel Luxury Marketing ROI

Luxury marketers should also have a strategy for a cohesive experience across all appropriate platforms to reach their target customers. Such a strategy will give your customers the feeling of that all-important “personalized service.” Also, companies that successfully implement omnichannel luxury marketing have an advantage over their competitors.

These interesting statistics regarding omnichannel marketing results were cited in a GetCRM article:

  • 90% of customers expect consistent interaction across various channels.

  • 87% of customers think brands need to put more effort into providing a seamless buying experience.

  • Businesses utilizing omnichannel marketing strategies achieve 91% greater year-over-year customer retention rates than businesses that don’t.

  • Companies with extremely strong omnichannel customer engagement see a 9.5% year-over-year increase in annual revenue and a 7.5% year-over-year decrease in cost per contact.

Yet omnichannel luxury marketing encompasses more than simply providing seamless, multiple channels of customer contact. You have to offer your customer quality contact with your business. Your customer service must be up to par, whether by phone or through an online chat. Otherwise, a new, interactive website or colorful brochure won’t have much value.

All channels of a luxury marketing strategy must work together to provide today’s luxury consumer with their ideal buying experience.

WealthEngine data can help you determine how to best reach your target luxury consumer. Fill the form on the right and a rep will contact you very soon.

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Redefining “Luxury Brand” for Your Luxury Marketing Strategy

Why do consumers consider one brand to be a “luxury” brand and another brand not? Exclusivity? Performance? Quality? Innovation? Heritage? For the most part, those all have been defining characteristics of a luxury brand, and they still are. However, there’s been a shakeup underway. The traits that carry the most weight with consumers in today’s luxury market have changed.

“The definition of ‘luxury’ is undergoing a paradigm shift in the consumer market,” said marketing expert Pamela Danziger. Unity Marketing and Luxury Daily recently surveyed over 600 luxury retailers and marketers. They found that the definition of luxury is the “number one disrupter of the luxury business.”

What does this mean for a luxury marketing strategy? If you know how consumers think of luxury and what drives their purchases, it can help you determine the best strategy to attract wealthy clients. You can also reduce the cost of acquisition.

Quality Is Now the Top Characteristic That Defines a Luxury Brand

Ask any Apple buyer how well they like their Mac or iPhone. They’ll undoubtedly tell you they believe Apple products are far superior to any competitor. It doesn’t even matter if competitive products offer better features. Apple may got its start by launching a unique computer product to compete against Microsoft. But Apple’s following has grown far beyond disgruntled PC users. There may be a certain “status” to owning an Apple product. However, the company built its brand on a reputation of quality and performance.

Now consumers are defining luxury differently. Just a few years ago, quality took over as the leading characteristic of luxury. Data from a recent major report confirms that quality, not exclusivity, is now the key definer of luxury for consumers globally. According to Albatross Global Solutions and Numberly’s fourth annual “The Journey of a Luxury Consumer” report, 85% of luxury consumers say quality is the most important characteristic.

“What separates true luxury from the idea of luxury is quality,” says Javier Calvar, chief operating officer at market research firm Albatross Global Solutions.

Younger Consumers Are Playing a Bigger Role in the Luxury Market

A change in the demographics of today’s luxury consumer is behind the shift in what defines luxury. Traditionally, the luxury market has been made up of older consumers, many with inherited wealth. Baby boomers and those older still make up 60% of the total global luxury market. But the other 40% is made up of Generation X and millennials. So younger consumers are representing an increasingly significant portion of the luxury business.

Younger people, with newfound wealth, are not only moving into the luxury market, they’re redefining it.

“When money goes into the hands of people that didn’t have much of it before, the relationship those individuals have with luxury brands is very different from those who have been exposed to luxury brands for a long time,” said Calvar. “A really large percentage of our top-end product customers are between the age of 30 and 50. It’s no longer a retirement plan to buy yourself a yacht to enjoy in your golden years. ”

Millennials in particular are a luxury marketing segment growing in importance and wealth. They see exclusivity as less important. Instead, they prefer to “belong,” and have little interest in something that separates them from their peers.

Connecting with the New Luxury Market Consumer

How can you connect with this new luxury market customer? Identify the specifics of your target customer’s profile. Once you know about their likes, dislikes, and best methods of contact, you can build a more effective luxury marketing strategy.

So it’s more than demographic data, it’s about understanding your customer’s mindset, whether your luxury customer is 35 or 65. Appealing to a baby boomer is different than connecting with a millennial, though both may have interest in the same product. Knowing the buying motivations of each allows you to tailor your message to that niche segment.

“Quality always will be essential to luxury, said Lyle Maltz, a director with Kantar Vermeer, WPP’s global marketing consultancy. “But now emotional value and a strong, personalized relationship with consumers are of great importance in luxury marketing.”

Today’s luxury marketing is “highly personalized marketing. It has a very specific and defined message that resonates with an individual’s affinities, interest, and wealth capacity,” agrees WealthEngine’s Patrick Bischoff, president of the Commercial Markets Group at WealthEngine. You need to build that one-on-one relationship with your customer to make them feel they are being treated as an individual.

Looking to engage and win over high net worth individuals for your brand? Download our luxury marketing guide today!

Following a Customer-Driven Luxury Marketing Strategy

The new luxury market consumer will define what makes a brand a luxury brand, not the other way around. Today it’s less about marketers and more about consumers. That can make it more challenging for luxury marketing strategy, as the definition of “luxury brand” continues to shift. Still, to truly prosper in the luxury arena, luxury marketers will need to follow the lead of their target luxury consumer.

“The change in how consumers define luxury and the new path to purchase is dramatically redefining the marketing strategy,” said an unnamed marketing industry insider in a Forbes article. “Luxury brands must be very agile and innovative in order to gain the favors of the new luxury consumer.”

Giorgio Armani is a brand known globally for its high-end designer men’s clothing. It began by targeting the ultra high-end professionals who desired a high quality product. Since then, Armani has gradually expanded its brand scope with products aimed at broader customer segments. Armani launched a line of jeans in the U.S. market for fashion seeking, price-sensitive youths in urban metro areas. It’s an example of a luxury brand creating sub-brands to capitalize on and cater to a different customer segment.

As stated in a WARC article, “The traditional luxury model has been challenged further with the rise of digital platforms, social mobility, the emergence of ‘affordable luxury,’ and the particular preferences of millennial shoppers.”

With more younger luxury buyers who grew up in a digital world, you must also change your luxury marketing strategy. Part of building a luxury brand involves communicating with customers in the way they prefer. Years ago, that may have been print ads, direct mail, or TV commercials. Today it’s more likely to include special videos, social media, apps, and other digital means that provide a “total customer experience.”

Luxury Lifestyle Marketing: 3 Ways to Appeal to the Lifestyle Consumer

Luxury lifestyle marketing has changed. No longer can you simply market an image of your brand and how it will make the lifestyle consumer feel. Today’s luxury buyers purchase items that act as an extension of their values and identity. Here’s how to appeal to them.

What is luxury lifestyle marketing?

Luxury lifestyle marketing is the process of high-end brands forming a relationship with a targeted group on the basis of their shared values and interests. High-end brands use their products as a means of communicating and forging deep emotional connections with their consumers.

Each brand has an identity. For example, Jeep’s identity is the “adventurer”. Adidas’ identity is “athletic”. Each brand has an identity that’s connected to a specific set of attitudes, values, and interests. Consumers, then, want to engage with brands that have a similar identity to theirs. So, when a brand with a particular set of values appeals to a consumer with a similar set of values, that process of influence is an example of luxury brand marketing.

Appealing to the Lifestyle Consumer

No lifestyle consumer is the same. Think about your circle of friends: do all of you hold the same interests? Do you all hold the same values? Today’s lifestyle consumers engage with brands that allow them, or give them the tools, to connect with their ideal selves. In that sense, not every luxury brand will appeal to every lifestyle consumer. That is why it is important to find and forge relationships with consumers whose ideals align with your own, and vice-versa.

In general, lifestyle consumers don’t want to be “sold” anything. They want to resonate with high-end brands on an emotional level, and feel that they’re part of a community that they support, and that supports them.

In order to appeal to the lifestyle consumer, you have to ask yourself two questions:

  • What values do we want to promote?
  • What type of emotional connection do we want to have with our consumers?

By determining what type of relationship you want to have with your consumer, you’re better able to cater to their evolving needs.

Want to engage and win over high net worth individuals for your luxury brand? Download our guide to learn how!

3 Keys to Building a Successful Lifestyle Brand

Your consumers’ needs and values is the foundation. So, what can we lay on top of this foundation to create something sustainable and influential? Here are the 3 keys to building a successful lifestyle brand:

1. Understand your Lifestyle Identity

Adidas’ identity is athletic. All Saints’ identity is edgy. What’s yours? Being able to clarify your identity allows you to narrow your focus, and understand what kinds of customers you’ll be forming deeper connections with. In luxury lifestyle marketing, knowing your identity helps you identify the values and products your customers will feel most connected to. By determining your identity as a lifestyle brand, you’ve just opened the door to all the necessary information you’ll need, not only to become successful, but to become influential!

2. Be Personal

If you want to forge emotional connections with potential and existing consumers, you need to know who you’re talking to. You may have people walking through your door with differing needs, yet all of them likely share similar values. It is important to create targeted messaging using hyper-personalization so that you focus on their interests. Each consumer is an influencer. You want to articulate that you hear and see them—and that you are not simply trying to sell them your product.

It’s also important to show them that you’re receptive to their perspectives and ideals. The way they are, and who they are, is of value to you, and you want to cater to that. You can also forge these emotional connections by creating novel experiences for your consumers. When your offerings and your overall branding is striking, the experiences that you’re offering to your existing and potential consumers, will stay with the people who believe in your values.

3. Leverage Wealth Data

Correct data tells a story about an individual. Instead of trusting that each of your consumers will find what they need from you, you have to get to know more about them. When you look at the wealth, age, behaviors, and demographics of individual customers, you are better able to anticipate their needs based on their values. We can then identify their propensity to stay with our brand, and understand what they may want to see or purchase in the future that we could create. Becoming attuned to this information allows you to create a loyal customer base. More than that, you’ve now created something even more integral: community.

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.

 

Luxury Product Marketing: Understanding the Luxury Consumer

Wealth trends are constantly changing. While using a standard luxury product marketing strategy for every consumer may generate sales, by fine-tuning your approach you can get more business from the luxury consumer who becomes a loyal customer.

Listen to the full podcast.

What is Luxury Product Marketing?

Luxury product marketing is the business of promoting and selling high-end products. Not only do luxury brands draw consumers in with their high-end products, but they also actively manage the perception of these products.

Luxury Goods Market Study

Revenue from the US luxury goods market is estimated to be between $85 and $100 billion annually, according to Euromonitor.

The luxury market is more relevant than ever. Over the past year, the luxury market has grown by 5% worldwide. This growth stems from the sales of three major items: luxury cars, luxury experiences, and personal luxury goods. These three items alone, account for more than 80% of the entire luxury market. Luxury car sales dominated the market in 2017, increasing by 6%. Sales in luxury experiences increased by 20% in two areas: high-end food and wine (up by 4% since 2017) and luxury cruises (up by 16%). As for personal luxury items, which are the core of the luxury consumer market, sales have increased by 5%.

The best luxury product marketing efforts focus on more than just those who can easily afford luxury goods. They target every person who is willing and interested in saving up for high-end products.

Understanding the Luxury Consumer

Reaching the same luxury consumer today can be different a few months from now. Wealth changes. But there’s more to it. When you learn about the interests and buying habits of individuals, you’re able to find more ways to influence those consumers and new ones. Knowing this information can help you find ways to generate more sales.

You might think that only affluent consumers want to purchase luxury goods. But, the truth is that there are other groups who are equally likely to purchase these products, and you can’t neglect them.

Think about the person who has been saving up for that new BMW or that new Louis Vuitton bag. All of those consumers are so drawn to high-end items, that they’re willing to save and splurge on your products. This gives you an opportunity to nurture them as loyal lifelong luxury consumers. As a result, luxury product marketing targets consumers who have both the capacity and intent to buy your products.

Download WealthEngine’s free Millionaire’s Report to find hidden gems about the buying habits of your wealthy customers.

The luxury market is no longer solely dependent on managing brand reputation and recognition. It’s also dependent, if not even more dependent, on understanding luxury consumer behaviors, clarifying your goals and intentions, and using this information to motivate buyers. These qualities will equip you to build a loyal customer base.

Luxury Product Marketing Questions

As you clarify your messaging, ask yourself:

  • What are people buying – what is the brand promise?
  • What are our luxury customers interested in – causes, issues, other non-product related drivers?
  • How can we enhance customer profiles with wealth and interest data to reach more people who fit our buyer persona?
  • How did, and how are, we engaging our customers based on what we know about their purchasing influencers?

When you create luxury product marketing campaigns that are tied to the things that influence your buyers, you naturally forge deeper connections.

Interested in learning more about luxury product marketing? Download our guide and find out how to win over high net worth customers for your brand.

Adapting to Changes in Luxury Consumer Behavior

Creating a strong foundation is only the first step. There’s much more.

  • How do you keep that luxury machine churning?
  • What can you do to captivate your customers?
  • What methods get people to recommend your luxury brand?
  • How can you maintain their interest?

Luxury product marketing requires you to be nimble. It’s important to recognize that there isn’t one type of customer coming through your door. More so, they have different needs to satisfy and it is ever-changing. The wealth-profile and buying propensity of a customer today can be different next year. As a result, it is important to stay on top of the changes in the wealth and interest of your luxury consumer.

By tailoring your messaging, you’re able to communicate your mission in ways that are accessible and appealing to more individuals. You’re maintaining the mission of your brand as you continue adapting to your customers’ needs.

Developing targeted messaging creates a good foundation for your brand. However, by leveraging wealth data, you can see how likely your new customers are to make a purchase, and when. This means that you don’t need to keep waiting for consumers to return! You have the power to evaluate demographic data to determine what they’ll need in the future.

When your customer is about to retire, they may be more inclined to buy luxury products associated with travel. They have a greater need for it. This information allows you to create messaging that’s more personalized, for individuals and groups that have similar experiences.

Luxury product marketing, in this case, allows consumers to feel that they’re part of a novel and elite experience. Customers are that much more excited knowing that they’ll have an individualized experience.

Learn More

Learn more about how personalization can enhance luxury product marketing to generate loyal customers with higher LTVs. Request a free demo by clicking the button above and a WealthEngine rep will contact you very soon.