Black Friday Marketing Campaigns for Luxury Retail

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The holiday season is fast approaching. Now is the optimal time for luxury retailers to gear up for the busiest season of the year. Your Black Friday marketing campaigns need to be data-driven in order to ensure success. Before we analyze the holiday season and provide recommendations, let’s address a question that might be on your mind:

Do luxury brands do Black Friday?

The holiday shopping season, especially Black Friday, can be the biggest time of the year for retail. With this being the case, luxury retail stands to benefit from the general willingness to spend.

Of course, there is the question of whether offering luxury goods on sale dilutes your brand. But, when it comes to your Black Friday marketing campaigns, there are ways for you to participate without affecting your overall brand image. Many high-fashion labels such as Prada and Fendi participate in Black Friday, as Bloomberg reports. 

Now, let’s explore the ways brands approach Black Friday internet marketing or digital marketing strategy.

Your Black Friday Marketing Campaigns

There are several ways for luxury retailers to get involved during the holiday shopping season. In general, all retail categories see an uptick during this time of year, including luxury.

Even luxury buyers enjoy scoring a great deal or an exclusive find. Thus, as a luxury retailer, you can create excitement around Black Friday without tarnishing your brand.

Your digital campaigns can be focused on value-adds that are specific to the season. These don’t necessarily mean offering unreasonable discounts on large volumes of products. A well-timed marketing campaign can promote your holiday idea in a way that is reflective of your brand. The promotion can generate both buzz around the season and the exclusivity of a certain deal.

How best can you do this? Let’s consider a few examples from past holiday seasons.

Black Friday Marketing Examples for Luxury Retail

Many luxury retailers have taken advantage of Black Friday in the past. For instance, although Louis Vuitton’s flagship store did not feature any discounts, according to Business of Fashion, they did open their store earlier to encourage Black Friday shoppers to come in.

Another example is Bergdorf Goodman’s holiday marketing strategy. They offered Saint Laurent handbags at 40% off. Even though this is a significant discount, they limited it by offering it on a specific item. Other labels and products were sold at regular prices.

Masstige brands such as Michael Kors or Ralph Lauren have offered deep discounts of up to 75% off during this season. They can bounce back to regular prices after Black Friday without altering the value of their products or their overall brand.

Black Friday Marketing Ideas: In-Store and Online

Let’s consider some Black Friday marketing campaign ideas that you can implement and promote:

1. Deep discounts on limited pieces:

Whether in-store or online, you can manage the number or types of discounts you have. For instance, you can offer 75% off on fur coats, but limit the number of coats. Let’s say you offer 10 pieces per retail store and 50 online. Similarly, you can offer a discount on very specific items and maintain regular prices for all other products.

2. Longer store hours:

Black Friday excitement can also be created by opening your store early or keeping it open for longer hours. By doing this, you can attract shoppers who are out early or late without needing to offer major discounts.

3. Limited edition Black Friday collectibles:

Your Black Friday offer could be on a new collection or limited edition line of luxury products at full price. You can offer an early and exclusive preview of next season’s goods to Black Friday shoppers. This offers you another alternative to make the most of the season.

4. Discounted shopping during a short window: 

When you do offer a traditional Black Friday sale, you can do so in a short window of time. For instance, if your sale prices are only available 6 am to 9 am, early birds will get in to enjoy the deals.  This also motivates and gives other shoppers incentive to shop earlier. The buzz from your campaign will last the rest of the day even when you roll back to full price.

5. Curate and exclusive experience:

Other alternatives revolve around creating a memorable customer experience for in-store shoppers. For instance, you can offer free personal shopper service on this day. Similarly, you could serve champagne in-store, offer double reward points, or free personalization on products.

This could also be held as an exclusive, invite-only experience for your most loyal customers.

6. Discounts in partner retail stores: 

As a luxury brand, you may not want to reduce prices in your flagship store or your own retail store. However, you can choose to offer discounts through your partner retailers or similar channels. For instance, luxury department stores or even off-retail stores can offer selective discounts on your products.

How to Use Data to Implement Your Marketing Campaigns

As we noted earlier, data-driven Black Friday campaigns tend to see more success. Learn more about wealth data implementation for Black Friday success by reading our article.

Essentially, when you conduct wealth screening on your contacts, you learn more about them. Analyzing your screening data can tell you what makes your audience unique. You can then use these insights to deliver personalized and effective campaigns.

Personalize Your Black Friday Marketing Campaigns

Use wealth screening and analytics to personalize your campaigns.

Learn More About Millionaire Buyers

Download a free copy of our 2019 U.S Millionaire Report today.

Wealth Data Implementation for Successful Black Friday Marketing

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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.

6 Ways to Maximize Your Holiday Marketing

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As summer comes to a close, the holiday season is fast approaching! What is your brand doing to prepare for the holiday rush? Consumers will be ready to spend. What data are you using to segment your customer base and supercharge your marketing efforts? Do you know the customers or prospects that can afford the products you sell?

Below are some helpful tips from WealthEngine for marketers to execute a flawless holiday season marketing campaign:   

  • Start you holiday marketing early to raise awareness ahead of the holiday season. This way when customers are ready to purchase, your brand is top of mind!
  • Segment your audiences using wealth and lifestyle intelligence to ensure the appropriate message goes to the right consumer.
  • Create multi-channel marketing campaigns (email, snail mail, banner ads, etc.) that have continuous impressions to achieve maximum results.
  • It’s never too late to put together an effective marketing campaign. Using relevant data to inform your decision making will supercharge your efforts. Don’t be afraid to get other departments in your company psyched about the holiday push and let them know how they can help you best.
  • While considering new market trends, always review what worked well last holiday season and plan to replicate your previous successes. How can you optimize what already works using new data?
  • Finally, don’t be afraid to be bold and take chances. The holiday season can be a frantic rush of consumer decisions and the brands that stand out will win the consumer’s attention.

For more information and help preparing for your Holiday season, contact WealthEngine today. 

Predictive Lead Scoring and Analytics – It’s Easier Than You Think.

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The statement ‘predictive lead scoring and analytics made easy’ seems counterintuitive. How can lead scoring and analytics be easy? If it was easy wouldn’t everyone be doing it?

According to a marketing effectiveness study by The Lenskold and Pedowitz Groups, 68% of successful marketers cite lead scoring as most responsible for improving revenue contribution. Additionally, the Pareto Principle says that about 80% of your sales comes from the top 20% of your customers. These statistics should give you pause.

Think about it. What if you could find new prospects that look like your best customers and discover new opportunities among people you already know? Simply put, wouldn’t you want to find prospects that have the same characteristics as those in the top 20% of your customers? Having these actionable insights can dramatically impact your sales and marketing strategies, resulting in increased revenue. This is empowering and valuable information.

Let’s take it a step further with an example:

A luxury retail organization is developing a strategy for their holiday marketing campaign. Specifically, they are planning to host an instore event and want to ensure they are inviting the right people so that they get the most out of the dollars spent. They also want the event to be enticing so both customers and prospects attend.

The organization analyzed their top customers residing within a 30 mile radius of the store location to develop a customer profile. Surprise! These customers have an affinity for equestrian and tend to drive a Lexus. Just those two data points alone influence their marketing plan. What about partnering on the event with Lexus or an equestrian-focused organization? Additionally, the retailer can now identify prospects who fit this customer profile and have the same interests, increasing the likelihood that they will be interested in attending the event.

Going forward, the organization can now score new prospects and customers to determine how to market to them going forward.

Bonus – this information was identified in minutes and doesn’t require a data scientist. How’s that for actionable?

Insights at your fingertips. Increased efficiency and productivity. Find out more now in our on demand webinar Predictive Lead Scoring & Analytics Made Easy.

What to Do Now to Maximize Holiday Spending This Year

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The current retail landscape presents many challenges that can be difficult to manage including decreased customer growth, little transaction growth, growing competition, shifts in spending, and unfavorable demographics. With a rapidly approaching holiday season and only 114 days until Black Friday it can be daunting trying to develop a successful strategy to overcome these challenges.

It’s no surprise that using data and analytics can dramatically impact your revenue, but analytics can only go so far if your data is vague or incomplete. Having complete, rich customer profiles will provide a stronger foundation for your analytics, and thus a stronger foundation for your marketing and sales strategy.

How can you enrich your customer data? Conduct a wealth screening to gain transformational insight into customers and prospects. A screening appends data to your customer database so you can better segment your database and determine who to prioritize in your marketing and sales efforts. This insight is helpful to not only identify your best customers, but to uncover those individuals who may show potential for additional business. You may be missing out on potential opportunities because you don’t know who has the capacity to spend more.

A wealth screening supplies you with wealth, income, lifestyle, and affinity information on individuals. This includes net worth, income, assets, real estate, stock holding, charitable contributions and other financial related data as well as business and personal contact information. Having this information allows you to prioritize who you focus on to maximize revenue.

A screening also lets you determine what marketing messages should be sent to each customer and prospect segment. In regards to gearing up your campaigns for the holiday shopping season, certain segments of your consumer database will have the ability to spend more than others. These individuals should receive offerings for higher cost items, while those who don’t have the capacity to spend as much should be shown lower cost items or a promo code to use to be able to purchase a more expensive item.  

The insights you can gain from a wealth screening are undeniable. By better understanding your customers and prospects the analytics and data you use to inform your decision-making will be more valuable and more impactful.

Contact us to learn more about how you can use these insights to not only identify your wealthiest customers, but to uncover those with the capacity to spend more.

Eight Ways to Get Involved with #GivingTuesday

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It’s hard to believe that #GivingTuesday is just one week away! Entering its fifth year, #GivingTuesday is a social media movement that was begun to remind people of the importance of giving back. Held on the first Tuesday following Thanksgiving (as well as Black Friday and Cyber Monday), #GivingTuesday is about compassion, volunteering, donating, and being generous in our communities. 

This year, #WEGivesBack by collecting donations for the Food and Friends charity. If your organization is looking for small ways to get involved with #GivingTuesday, here are ways that you can do right now to get started:

  1. Like #GivingTuesday on Facebook, or follow them on Twitter, LinkedIn, and Instagram in order to gain inspiration for your own #GivingTuesday campaign. Retweet, like, or share their content so your followers are aware of ways they can get involved.
     
  2. Create your own #GivingTuesday themed content, such as blog posts or short videos, to raise awareness for your cause. Post it on your own social media and use the #GivingTuesday hashtag to help further your cause and give your donors a reason to give back.
     
  3. Start a Facebook Fundraiser in order to share your story and raise funds for the cause you care about.
     
  4. Share your #MyGivingStory through #GivingTuesday’s Facebook page by December 31 in order to win up to $10,000 for your favorite nonprofit organization! Just tell the story of a time that you supported a nonprofit in a way that was meaningful to you.
     
  5. Take an #UNSelfie to share how you are giving back or why you choose to give this year – share it on social media with the #UNselfie hashtag to encourage your followers to give.
     
  6. Develop a campaign around #GivingTuesday. It may be small this year, but start now and build momentum for future years. Download the #GivingTuesday Social Media Toolkit to get started on showing your support for the movement
     
  7. #GivingTuesday isn’t just about donating money – encourage your followers to donate their time by volunteering! And don’t forget your past and present volunteers – use the #GivingTuesday hashtag to show your appreciation for them.
     
  8. Track, measure and record all of your activities and results, so you can grow and expand your #GivingTuesday impact next year.

If you need a little extra help getting inspiration for your #GivingTuesday campaign, check out our blog post Three #GivingTuesday Campaigns That Will Inspire You This Year. Happy giving!