The luxury landscape is changing. Gone are the days where companies can get by simply with their brand names. Increased competition in the marketplace means that these companies need to compete for buyers and share of wallet. Today, we’ll explore 3 changing trends in the luxury market. Understand these, and you’ll stay a few steps ahead of your competition as top-of-mind with your potential buyers.
Trend 1: All Wealthy Are Not the Same
Who are your most likely customers? It’s a question that all businesses better have an answer to. In the past a company might answer this with a general answer, such as wealthy men in their 50’s. However, it’s become somewhat more nuanced than that now.
In order to maximize your sales and keep attracting prospects, you’ll have to realize that all wealthy prospects are not the same. “Affluent” and “wealthy” are no longer one category to lump all high net worth individuals into. You need to delve deeper into their habits and lifestyle to make an informed decision as to who is most likely to make a purchase. When targeting prospects and growing current customers, you need to build out targeted segments. This includes having the propensity to buy your luxury products, or wealth. But it also includes other characteristics that make them unique.
You have probably heard a lot lately about the role of analytics in building your marketing and development strategies. This applies to wealth intelligence, as well. In order to reach the most eligible clients, you need analytics to show you an accurate portrait of your customer: wealth, demographics, and lifestyle.
Trend 2: Online Marketing and Social Media Have Changed the Playing Field
What defines your customer? Chances are that they are telling you all about themselves on social media platforms – whether it’s pictures of their favorite styles on Instagram, stories about their vacations on Facebook, or complaining about poor service on Twitter. You just need to listen and communicate effectively back within those channels.
Successful online marketing is more than getting your message out there. Your current consumers use social media to share their “likes” and positive experiences, and to communicate these impressions to their peers and friends. Your online messaging needs to connect on an individual basis and engage your clients in a healthy dialogue. This messaging allows you a glimpse into your potential patrons’ lifestyles and online activities.
Using these online profiles and analytics allow you to understand potential wealth and patterns. These insights provide a range of data for you to build your strategy to target the right prospects more efficiently.
Trend 3: Customer Loyalty is Key
Who do your customers know? You already know that your most loyal customers create revenue you count on every year. But do you know how to grow your average customers into loyalists that will drive increased sales and referrals?
Customer loyalty comes from an understanding of your patrons’ behavior. Once you have built your current customer’s loyalty, you can leverage their profile data to create a targeted list of prospects that look just like your current ones through look-alike models. After all, if you had to define the perfect group of new customers, wouldn’t you want to find ones that look like your best current ones?
Looking at your loyal customer base also helps you to grow and build your clientele based on your current consumer’s referrals. We all listen to our friends’ and colleagues’ experiences; this information can make or break your company’s reputation. Make sure your value and brand are working for you and you capitalize on the word of mouth from your loyal customer base.
Focusing on these three trends within your marketing initiatives can help you bring your luxury brand into the modern world and blow away the competition. Remember, you have to fully understand your customers before you can know how to best talk to them.
Read how luxury jeweler Buccellati increased their market penetration with WealthEngine.
Do you have a success story of your own in the luxury retail space? Share it with us in the comments below.