6 Steps to Maximize Your New Donors After #GivingTuesday

#GivingTuesday is finally here! Not only is #GivingTuesday important for fundraising, but it’s also important for the collection of rich data. While you and your team have put a lot of work into #GivingTuesday, it is important to note that the real work begins the day after!

With the right plan, this data can really set yourself up for continued success after #GivingTuesday. If you’re wondering where to start, let’s explore the steps you can take to put your plan into action!

 

Step 1: Understand your #GivingTuesday Donors

#GivingTuesday has generated a lot of momentum towards your year-end fundraising goals and it is crucial to keep the momentum going. The data you have collected on this day can set you up for successful year-end fundraising as well as a fundraising plan for next year. This is especially true when combined with the right technology. Once you have promptly sent out thank you notes and receipts to #GivingTuesday donors, it is important to understand and know who has contributed to your campaign.

Find out what makes them tick and understand them in a holistic way that goes beyond wealth to include their interests, lifestyle, passions, and affinities.

Step 2: Personalize Every Touch

Understanding your donors enables you to speak to them in a way that resonates. Every touch can ensure that their lifetime value (LTV) goes up and that retention gets strengthened.

Personalization goes beyond using their first name in emails. Your tone, language, subject matter, and images can be customized to increase personalization. Screening your #GivingTuesday donors gives you rich information about them. A solution like WE Analyze can then be used to find patterns within a set of donors and create effective segments that improve personalization.

 

Step 3: Create your own Branded “Giving” Day

Now,  there are many new holidays or giving days- Christmas in July is now a thing! Similarly, you can find a theme that resonates with your donors’ interests and use these insights to create a compelling event.

While you may not have the scale and publicity of #GivingTuesday, you can still benefit from standing out with your own messaging at a time of the year when things are quieter. Moreover, branding this day can generate credibility for your organization in the long run.

 

Step 4: Learn What Makes your #GivingTuesday Donors Different

#GivingTuesday is a great gateway to attract new donors to your cause. The global and viral nature of this day garners the attention of a wider range of people. You have an opportunity to really study these prospects and understand what makes them different from those who give major gifts or give to your annual fund.

Use wealth and lifestyle data for predictive modeling and prospecting to support your year-round fundraising efforts. Predictive prospecting can help you identify more donors like these who you may have missed through your regular communications through the year.

 

Step 5: Move Beyond Annual Screening

When it comes to fundraising, you’re really competing for wallet share more than anything else. Restricting yourself to annual screenings, or worse, working with data that is a few years old, can be counterproductive.

Real estate and stock market values change constantly resulting in net worth changes.  Life stage changes can occur changing the demands on a donor’s wallet. Regular screenings can give you up to date information and strengthen your communication.

In fact, you can access data in real time through API. This relevant and actionable data can easily integrate with your existing DMS which means that you can receive a current wealth and giving propensity score as soon as someone engages with your platform. Outreach can be quick and cultivation can begin immediately following their interaction with your platform.

 

Step 6: Build Stickiness Using Insight on Affinity Groups

As we noted earlier, you can leverage your #GivingTuesday data to create segments of like-minded donors. These groups can receive messages and event invitations tailored to their interests and affinities. Same goes for social media.  You can create subgroups for each segment to ensure that the group only receives relevant information from your organization.

A customized message is more likely to resonate and less likely to be as disruptive.

 

 

With these steps, you can make effective use of #GivingTuesday data to keep the momentum going for your ongoing fundraising efforts. Once you’ve gathered this data, screening and segmenting allow you to really understand your donors. Understanding them enables you to communicate personalized messages that engage them in ways that are more accessible and relatable. Personalization can be supported by a branded “giving” day and other events that increase stickiness or continued support.

 

Contact us to learn more about screening, predictive prospecting and integrating real-time data into your existing Donor Management Systems.

Trends in Luxury Real Estate: How Data Will Help You Win More Business

By Craig Hogan

The luxury real estate market is rich — with opportunity. But the price that today’s luxury agent must pay to play in this segment isn’t just in dollars. It’s in data.

The high-net-worth and ultra-high-net-worth markets are more vibrant than ever with the rise in the number of millionaires, multi-millionaires, and demi-billionaires. For luxury real estate agents, it’s crucial to have a holistic understanding of what drives and motivates these clients, how they spend and save, what style resonates with them and how you as an agent can distinguish yourself when working with affluent clientele.

While the luxury market has softened in some areas and some price points, home prices are steady in most parts of the country and the sale of $10 million homes has remained strong.

That means if you want to get in on the action, you must do your homework! The most successful agents in the luxury market are always attuned to the latest trends and have a great facility for connecting them to the unique interests of the individual clients.

A new report from Coldwell Banker and WealthEngine, Millionaires vs. Demi-Billionaires: Wealth in 2018, compared the attitudes and preferences of the U.S. millionaire market – defined as those with a net worth of $1 million or greater – and the U.S. demi-billionaire market – defined as those with a net worth of $500 million or greater – to identify the top market and lifestyle trends shaping the luxury sphere.

Awareness of the real estate market conditions driving the affluent clientele’s purchases has become table stakes. You need a deep understanding of their lifestyles and the trends that shape them so the real estate experience fits seamlessly into their lives. You need to understand not only how a client’s investing strategies play into their buying decision, but also have a discerning eye for the style that will resonate.

The Millionaires vs. Demi-Billionaires report gets to the heart of these macro trends and what they mean for you as a luxury agent.

Top luxury real estate market trends in 2018 include:

  1. Increased mobility: Technology allows consumers to be increasingly mobile. Weekend vacation homes are a trend of the past, as we’re seeing more luxury clients buying full-season vacation homes where they can work remotely.
  2. Geographic expansion: The wealthy are expanding their property ownership beyond coastal locations where they have historically been based. Millionaires are investing in properties spread across New Jersey, Massachusetts, Virginia, Washington, Illinois, and Maryland, while demi-billionaires are emerging in Colorado, Illinois, and Pennsylvania.
  3. Spending power: Only 10 percent of demi-billionaires and 7 percent of millionaires are aged between 40 and 50, but they’re growing groups. While older generations may possess more current wealth, younger generations have tremendous spending potential and are a key group for luxury agents.

Top luxury lifestyle trends in 2018 include:

  1. Amenity-rich homes: Millionaires and demi-billionaires influence everything from how homes are being built and purchased to how they’re decorated and renovated. They’ve redefined what buyers want, and builders are responding – we’re seeing industry shifts toward amenity-rich homes with features like private gyms and statement wine cellars, as well as homes that are eco-friendly and smart home automated.
  2. Brand loyalty: When it comes to collection toys like automobiles, demi-billionaires are Mercedes all the way – ranking the Mercedes-Benz S Class, E Class and GL Class among their top favorites. Similar to the average consumer, these high-net-worth individuals can express brand loyalty to you or your network when you as an agent draw meaningful connections for them and customize their experience.
  3. Bespoke marketing: Building on a customized experience, luxury consumers want bespoke offerings and services. When they travel, for example, they want a personalized, transformative experience, notes Skift, a travel insights company. These consumers have already done research before going to a travel agent or a real estate agent and look to these agents as trusted advisors for a hands-on, bespoke marketing experience.

The power of personalization is essential across real estate. Millionaires (7 percent) and demi-billionaires (0.001 percent) only make up a small fraction of the U.S. population, yet they have vast power to influence trends and the economy. They are a tremendously diverse class of individuals and creating a customized experience for them is the way of the future in luxury real estate.

To stay ahead of the curve on the latest luxury trends, see how the Coldwell Banker Global Luxury® program equips its Luxury Property Specialists with state-of-the-art technology and educational resources so they can seamlessly connect with the world’s most affluent clientele.

Originally published here.

5 Reasons To Get Your Nonprofit Prepared For #GivingTuesday

If you are a fundraiser, it’s definitely no surprise to you that the time for year-end fundraising is right around the corner. Even if you are close to hitting annual targets, #GivingTuesday is a huge opportunity to boost your efforts and help you exceed your goals.

With #GivingTuesday fast approaching, you can enhance your year-end fundraising by reminding your donors and prospects to participate? But, that begs the question: is #GivingTuesday appropriate for every nonprofit?

For  most nonprofits, if your year-end fundraising could use a boost, then a #GivingTuesday campaign can provide your nonprofit with the lift it needs. So, what are the benefits of participating in #GivingTuesday? There are five primary advantages of involving your nonprofit in #GivingTuesday:

1. Global Presence and Relevance

#GivingTuesday has gone beyond what is referred to as #activism. Everyone from Bill Gates to Reese Witherspoon engages in #GivingTuesday and encourage their followers to give on this day.

The movement has also found a global following through social media. This provides nonprofits with the potential to gain exposure and donors worldwide.

2. Seasonality and Generosity

Overtime, the holiday season has become more and more commercialized. While consumers spend significantly during this time of year, there is also a growing sentiment of generosity among many. #GivingTuesday is strategically placed after Thanksgiving when families have come together, felt grateful for what they have, and realized that not everyone is afforded the same lifestyle and experiences.

At a time like this, when sentiments are high, even small prompts or reminders to make a difference can create a significant impact.

3. Growing Public Conscience and Purpose

It’s true that the holidays are a time of giving and generosity. However, data has also shown that high net-worth individuals, especially millennials and younger generations, are driven by meaning and purpose. They believe in associating with brands that are responsible, and organizations that care about communities and causes.

With this outlook, HNWIs are bound to be aware of #GivingTuesday and its impact. Your nonprofit could leverage their sentiments by providing them with a convenient platform to get involved. Think of it this way, if you are not involved in #GivingTuesday, you may be losing out on individuals who are not only supporters of your cause but who may be likely to donate.

4. Significant and Growing Impact

Besides the sentimental significance of #GivingTuesday, there is no ignoring the financial significance. Last year on #GivingTuesday, nonprofits raised nearly $274 Million across the country. That was a 50% increase compared to 2016.

This year, the day has even greater potential to make a difference to organizations like your nonprofit and the communities and causes you represent.

5. Gateway for New Donors

One doesn’t have to be the ‘philanthropic’ type to participate in #GivingTuesday. The social media-powered movement has been getting the attention of people across the world whether they are usually involved with giving to causes or not.

A #GivingTuesday campaign is a great way for your nonprofit to reach not only new donors but also different types of donors who you wouldn’t normally reach through capital campaigns or  major gift programs. #GivingTuesday is about making small contributions as much as it is about making major gifts. You  have the ability to reach a wider range of prospects who can become recurring donors or long-term supporters of your organization through continued engagement.

We hope you find that these reasons resonate with your organization. There is a compelling case for creating a #GivingTuesday campaign whether it is a month-long omnichannel undertaking or a simple email to remind donors and prospects about this day.

Now that you know whys behind this event, join us for our Webinar on Thursday, November 15 from 1-2 PM ET to learn how you can plan #GivingTuesday promotions. 

WealthEngine recognizes US Bank and Humane Society of the United States for Innovation and Leadership

BETHESDA, MD, November 2, 2018— Today, WealthEngine announced the winners of the inaugural WealthEngine Prosper Awards as the 2018 WE Prosper Summit concluded.

The inaugural WE Prosper Summit was an online gathering of thought leaders from global causes and international brands, where participants came together for a four-day conference of keynote speeches, how-tos, and case studies. The online summit contained eight hours of content including presentations from 15 thought leaders among our clients and partners. “It’s a privilege to work with and recognize the work of these industry leaders,” says PV Boccasam, CEO. “When corporations and causes collaborate around innovative technologies, the positive impact to their customers and communities are both measured and sustainable.”

The annual WealthEngine Prosper Awards honor leading brands and nonprofits that are delivering outstanding business and social impact using WealthEngine’s prospect engagement capabilities to deploy highly effective, personalized, wealth-aware campaigns.

The 2018 WealthEngine Prosper award winners are US Bank and The Humane Society of the United States.

Commercial Client: US BANK

Financial institutions with multiple product lines are best positioned to own the customer journey from current state to estate. This unified banking approach to prospect engagement requires personalization which can lead to a lift of 30-40%, as per a recent BCG report.

US Bank is one of the largest banks in the US with more than 3000 branches and over $450B in assets providing banking, mortgage, and investment services to individuals, businesses, and government agencies.

By utilizing wealth and lifestyle intelligence from WealthEngine, wealth managers at US Bank are now empowered to hyper-personalize their prospect and client outreach with the most relevant and meaningful interactions. Having instant access to over half-a-trillion data points on 250M US adults within their Salesforce environment is helping them significantly improve their effectiveness in nurturing their prospects while reducing their prospect acquisition costs.

“We offer our clients a fully integrated client experience that can simplify their financial life and help them work towards their goals. Establishing and growing the client relationship is an exclusive focus for us, and WealthEngine’s Prospect Engagement Platform is a key solution in making that happen.” – Chady AlAhmar, SVP Head of Strategy and Business Development – Wealth Management Group.

Nonprofit Client: THE HUMANE SOCIETY OF THE UNITED STATES

Founded in 1954, The Humane Society of the United States (HSUS) is a leading animal advocacy organization, seeking a humane world for people and animals alike. HSUS and its affiliates provide hands-on care and services to more than 100,000 animals each year and professionalize the field through education and training for local organizations.

HSUS is utilizing WealthEngine’s AI and machine-learning-powered Prospect Engagement Platform to find new prospects along with deep insights on their propensity, capacity, and intent helping them personalize their engagement across the entire donor journey. Recently, HSUS discovered over 110K new donors by modeling 150 of their best donors with the help of WealthEngine’s award-winning data science team, enhancing their ability to quickly reach their fundraising goals.

“By instantly screening, scoring, and ranking new donors as they come in using WealthEngine’s Prospect Engagement Platform and efficiently assigning them to the right team, we are able to optimize our portfolio of prospective donors and increase effectiveness in receiving major gifts. We are the nation’s most effective animal advocacy organization, and WealthEngine is a key partner in making that happen.” – John Vranas, Chief Development, and Marketing Officer, Humane Society of United States.

About WealthEngine

Using actionable wealth and lifestyle insights, WealthEngine (WE) fuels highly-targeted campaigns that continuously deliver measured outcomes. The WE prospect engagement platform is powered by more than a half-trillion data points and uses proprietary learning science to create unique WE Profiles for more than 250M people in the U.S.

For more than 20 years, we have ensured our clients engage in highly personalized and precise conversations with their audiences to find their next best prospect and drive growth. By elevating campaigns to the power of WE, our clients expand their audiences, decrease acquisition costs and increase revenue, along with the lifetime value of their donor or customers.

WealthEngine works in both the commercial and nonprofit markets with clients in financial services, luxury, retail, real estate, hospitality, healthcare, higher education, arts & culture, and with any organization looking to use wealth and lifestyle data to enhance their efforts.

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Omnichannel Marketing Strategies in Luxury Marketing

Omnichannel marketing strategies in luxury marketing offer 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 utilizes 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.

  1. Email

Just about everybody uses email these days, even grandma. It’s an important element in omnichannel luxury marketing.

  1. Social media

Social media can be used to connect with customers at home or work, and on multiple devices.

  1. In-person contact

Your customers can get immediate answers to their questions in person, along with your input on product and service options.

  1. Website

If you’re in business, you need a website. Period. It’s a primary channel of customer contact.

  1. Print

There are still people who like print media. More so, you can use a printed business card or catalogue 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.”

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 in 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 business 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.

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.

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.”

 

Mine Your Luxury Marketing Database to Lower Customer Acquisition Cost

Everyone is looking for new customers for luxury marketing. What you may not realize is that a great source of new business is your existing customer database. Here’s how you can mine it to lower your customer acquisition cost.

Reduce Your Customer Acquisition Cost

The key to reducing your customer acquisition cost lies in how closely your past customers match your current target luxury marketing customer profile. The better the match, the more likely you’ll attract wealthy clients and have repeat customers. Correctly mining your current customer list can provide an abundance of prospects for your latest products or services.

“There is this philosophy that everybody is driving after net new customers,” said Patrick Bischoff, president of the Commercial Markets Group at WealthEngine. “Certainly, we want to grow our business and want to increase net new customers. Yet we at WealthEngine, together with our clients and some of the premier consultancies, have recently conducted studies. The first step in proper luxury marketing is to go back to your existing database.

Getting Past Customers to Buy

Not only is it less expensive for a business to retain past customers, it’s also more profitable. A Bain & Company study found that just a 5% increase in customer retention can increase a company’s profitability by 7%. Also, the average amount spent by a repeat customer was two-thirds more than a new customer.

According to a MarketingProfs.com article, getting your past customers to buy from you again can also result in more ongoing revenue. If you can convince your customer to make a second purchase, that customer is more than twice as likely to buy a third time. And that customer is more likely to buy even a fourth time! “If you’re able to make even a small increase in your conversion rate for second-time purchases, you’ll see serious revenue growth.”

So honing in with the right targeted marketing for your one-time buyers will increase the amount of second-time purchases. And once you’ve gotten them to make that second buy, it’s often only a matter of time before they make their next purchase. You’ll also reduce the customer acquisition cost.

Mining Your Luxury Marketing Database

Customers who happily made a purchase from you are more likely to buy again. Of course, you can start with purchase data to help determine what else they may buy from you. But purchase history alone may not be a good indicator of future luxury purchases.

Say you bought something at a fashion retail store. You’ll be in that retailer’s customer database. They may have your email address. They may have your name. But they have no idea what your potential is to buy more in the future.

“What is the capacity of the individual to spend with me, who I have already in my database? Most of our clients don’t know,” states Bischoff.

Previous spending is a key component of luxury marketing, but it should not be the only data point you’re using. Not all existing high net worth customers will have the abilty or capacity to spend more with you. So, identifying those who do is essential to enhancing your revenue and driving a higher customer lifetime value.

Finding Repeat Luxury Marketing Customers

Data beyond income or net worth will be valuable in determining your luxury marketing focus. Besides wealth, there are plenty of other data points to consider.

“We advise our customers to take their database and append it with our Wealth Engine information,” explains Bischoff. ”Appending means we match their records with ours. We have a database of 240 million individuals in the U.S., covering about 85% to 95% of the adult population. We match these individuals with our data and our system. Then we can add to the information that our clients have.”

One person may have a net worth of $5 million. Another person’s net worth is over $500 million. Plus there are up to 1,200 different data points on likes, affinities, donations, causes they support, etc. All this WealthEngine information is reported back to our clients. That allows them to start pinpointing their luxury marketing efforts toward people they already know. They already know to contact these people because a lot of them gave contact information in a prior buying session. That is the starting point.

Locate Your Best Luxury Marketing Prospects

Once you understand all of these things about your existing database, you can then start to make use of other resources. Those include AI, machine learning, and any kind of predictive modeling to score that database. By scoring, you can determine the best of the best luxury marketing prospects.

Should your database be segmented or categorized? Should you not market to the entire database, only two segments of it for certain products or services? The real trick is that score, which is a very unique feature of WealthEngine.

Getting specific about who you’ll be marketing to can make your work much more efficient. “It is imperative for brands, both luxury and non-luxury, to prioritize and segment their customer base. Then they can identify who they should focus their time and budget on in their marketing campaigns.”

Going Beyond Your Current Luxury Customer List

In addition to pulling your best repeat prospects from your own list, you can apply that modeling score to new prospects. The WealthEngine database is full of individuals with whom you have not had any previous interaction. Combining your data with WealthEngine data will model those potential luxury market buyers so that you can reduce your customer acquisition cost. Luxury marketing is not just about previous buying habits, but identifying others who are most like you past buyers. They are prospects who have the tendency to make purchases and have wealth to do so.

In that case, WealthEngine will give you the most “lookalikes” to your best customers. Those are people you know as your best customers based on how well they fit your target profile. Then, you will actually be marketing to the people who look most like those who already have some relationship with you. That will definitely reduce your customer acquisition cost.

“Comprehensive and informative data is a prerequisite to everything marketing today. It’s the foundation. You need to know something about an individual before you can customize your engagement strategies.”

Find out more about how WealthEngine data can help you reach more of your luxury marketing customers. 

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.

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.