Luxury Marketing Archives - Page 2 of 2

August 4, 2017

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

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.

July 31, 2017

What to Do Now to Maximize Holiday Spending This Year

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.

July 17, 2017

Maximize Revenue with a Complete Picture of your Customers’ Capacity to Spend

Luxury brands face tough competition to capture and retain high net worth customers. They are now facing competition from non-luxury brands, who have been gaining traction, and wallet share, among HNW individuals. In 2016, Nike was ranked the most valuable apparel brand in the world, overtaking Louis Vuitton, and Kia, a non-luxury vehicle, came out on top in J.D. Power’s quality car survey.

Luxury brand or not, the competition is fierce to both attract and keep the attention of HNW customers. Their business can make a huge impact on your business. A Bain & Company study found that a 5% increase in customer retention can increase a company’s profitability by 7% and that the average amount spent by a repeat customer was two-thirds more than a new customer.

Because of the current landscape, it is imperative for brands, both luxury and non-luxury, to prioritize and segment their customer base and identify who they should focus their time and budget on in their marketing campaigns. One approach is to use transactional history, however, spend history does not equate to spend ability, so you need to be more granular.

Previous spending is a key component, but it should not be the only data point you’re using. Instead, focus your efforts on identifying the low spend, high net worth customers among your current database. Think about it – a customer may have purchased something for $100 when they actually have the capacity to buy something that’s $1,000. Use this information to personalize your sales and marketing outreach and present higher cost items.

Remember, not all existing customers have the capacity or ability to spend more with you. Identifying those that do are critical to enhancing revenue and driving a higher customer lifetime value.

Contact us for more information on analyzing your customer base and identifying those with the capacity and net worth to spend more.

June 7, 2017

Marketing Analytics Conference Recap

This week, we attended the Marketing Analytics Conference, hosted by the DMA. The event was 2 days packed with great thought leadership and real-life examples how organizations are using analytics as the base for successful strategies. It also provided a setting for executives across many industries to learn from each other and share best practices.

We were very excited to not only participate but also to lead some of the discussion. Our SVP of Product Management, John Funge, led an outstanding a panel on “The Promise of Personalization – Two Approaches in Conversation”. John was joined on stage by Abby Lee, VP, Marketing & Media Strategies, at Re/Max and Justin Boggs, Senior Director, Marketing Analytics at Sephora. They discussed a wide variety of topics about how they address personalization, from the basics such as how they define it to more specific methods they are using to customize their conversations to customers and prospects. It was a fascinating look at two different industries and their challenges of using data to enable better 1-to-1 marketing.

Personalization was just one of the many great themes at the event. The agenda was jam-packed with topics such as data-driven processes and technology, how to reach buyers, developing a data-driven culture, AI, attribution, automation, and more. Like most of the participants at the event, we came away from the session with a ton of ideas to implement in our own businesses when we get back to the office.

After plenty of discussions about marketing analytics and how it is integral for success in the industry, it’s more clear that in order to succeed, you need a good foundation of the right data. That’s where we come in. We can help your organization enhance your own internal 1st party data with more information about the people you already know and supplement that with additional prospects who you don’t. Without the right data, it’s impossible to implement any analytics to drive success. You wouldn’t jump straight to building your house without first pouring the foundation. Likewise, one shouldn’t start trying to implement a sophisticated data-driven program without ensuring you have the right data in place.

If you want to learn about all the ways we can help you with personalization and segmentation, take a look at our products and services here. When you’re ready, contact us for a free demo anytime.

June 1, 2017

Marketing Analytics in Action: Join WE at the Marketing Analytics Conference

Marketing has become increasingly sophisticated over the years. From real-time personalization to dynamic messaging, marketers can do some powerful things to segment their audience and engage with them on a 1-to-1 basis with relevant content. While there are many routes to marketing success, all of these tactics have one thing in common – data. Comprehensive and informative data is a prerequisite to everything marketing today. It’s the foundation that needs to be laid down before you can build the house. After all, you need to know something about an individual before you can customize your engagement strategies.

As a data and analytics company, we’re fully bought into this mindset. We know the powerful things that our data can do to help drive successful sales and marketing strategies. And we love talking about it with colleagues, customers, prospects, and anyone else who is interested! Which is why we’re excited to attend this year’s Marketing Analytics Conference by the DMA on June 5-6 in Austin, TX. Here’s a brief synopsis of the event straight from the company’s website:

The Marketing Analytics Conference brings together the most brilliant minds at the front lines of marketing and data science to share strategies for building out, managing and drawing the most value from your marketing analytics practice. Navigating today’s multitude of channels, touch points, and data sources requires that marketing executives and data scientists collaborate to turn insights into intuitive customer interactions. Attendees will leave MAC 2017 with specific tactics for enhancing their marketing analytics strategy and the connections needed to continue building out their practice in the years to come.

We’re excited to be participating with industry leaders to discuss the ways we can drive more revenue and better engagement using our data. We’re also excited to contribute to the discussion by presenting. Our SVP of Product Management, John Funge, is leading a panel on Personalization. John will be joined on stage by Abby Lee, VP, Marketing & Media Strategies, at Re/Max and Justin Boggs, Senior Director, Marketing Analytics at Sephora as they discuss how they address personalization from different perspectives and what they have learned along the way. It’s going to be a great session.

If you’re planning to be in Austin at the DMA MAC next Monday, make sure you keep an eye out for us. John speaks at 1:20 pm and is gearing up for a successful session. We’ll also be ready to demonstrate WealthEngine with anyone who stops by our table. If you can’t make it, don’t worry. You can follow us on social as we’ll be frequently updating the event.

Check back on the blog next week for a recap of the event. In the meantime, if you want to learn about all the ways we can help you with personalization and segmentation, take a look at our products and services here.

May 23, 2017

Take Personalization Beyond Email

Personalization in email marketing, and the positive ROI that can result, is frequently discussed. It’s been proven that personalized emails result in 6x higher transaction rates. However, personalization should not stop at email marketing. Emails are just one component of the whole customer experience.

Real-time personalization across all channels is key. The speed at which you can customize your messages and offerings to your customers can dramatically impact your revenue, boosting total sales by 15 to 20 percent.

Imagine instantly knowing key demographic and wealth information of an individual who calls into your customer service department. Within seconds your representative would be able to determine what approach to take with the customer and who to route them to, whether it is rolling out the red carpet, inviting them to a preferred customer program, or pointing them to goods and services that match the individual’s spending capacity.

You could also utilize this consumer information to tailor and enhance a hotel guest’s experience upon check-in. For example – upgrade their room to a suite or sign them up for a guest experience that closely aligns with their interests and wealth bracket. The personalization shouldn’t stop once your guest checks out. You should send emails with specific packages that would appeal to their interests and lifestyle, or ask them to sign up for a rewards program.

While the majority of marketers agree that personalization has improved their customer experience, only a little more than half believe they are doing it correctly. If you’re not building personalization into your marketing and sales strategies, you are missing out on revenue opportunities.

Take the time now to gather your company’s stakeholders and discuss the need for personalization in the customer experience. By making it a priority, you will better understand your customers, which will result in increased brand loyalty and higher lifetime customer value.

To hear more about personalization join WealthEngine at the Marketing Analytics Conference on Monday, June 5 for a session on The Promise of Personalization – Two Approaches in Conversation.

May 8, 2017October 1, 2018

CEO Mark Logan on Marketing to Gen X, Y, & Z

On Wednesday, May 3, our CEO, Mark Logan, joined senior executives and decision makers at the 2nd annual Luxury Roundtable hosted in New York City by Luxury Daily. The goal of the roundtable was to discuss a serious issue facing luxury marketers: how to drive and sustain demand from Generations X, Y and Z whose shopping habits are strikingly different from the silent generation and baby boomers.

Mark joined a panel of experts to discuss “Ecommerce and Mobile: Symbol of the New Path to Purchase.” The focus of their session was how to deploy online and mobile channels to generate new business while retaining existing customers for generations who live on their smartphones. Mark shared how WealthEngine can provide useful insights on customer segmentation and the critical importance of personalization.

WealthEngine has put together a useful resource to help luxury marketers use predictive analytics and modeling. You can download it here.

For more on the roundtable, including slides and other panel summaries, click here.

April 24, 2017April 22, 2019

Marketing to the affluent millennial consumer, everything you need to know

Marketing to the affluent millennial consumer is going to be a key skill for luxury companies. There is constant chatter about millennials and whether they work hard or are hardly working. It is time to put this debate aside and pay attention.

Why are affluent millennials important to luxury companies?

Millennials are going to have a big impact on our economy. This means that you cannot discount them and their growing wealth. The number of wealthy millennials in the United States is increasing. Millennials make up nearly a quarter of affluent U.S. households. Where does their wealth come from?

Their wealth, in fact, can be attributed to inheritance and early professional success in the technology industry.

Affluent millennials are a key consumer segment. Moreover, you might find yourself competing against other luxury brands for their attention. Marketing to affluent millennials will need a new outlook. If you haven’t already, it’s time to start shifting your thinking and strategy. Luxury consumers are more valuable when they are younger as they spend 1.5 to 2 times more than older affluents. Their expenditure applies to both luxury goods and services.

How can you successfully market to the affluent millennial consumer?

To truly engage the affluent millennial, you need to learn everything you can about them. This will help you personalize not only your messaging but also the whole customer experience. Here are some ways you can better understand and market to affluent millennials:

WealthEngine’s Step by Step guide: Marketing to the Affluent Millennial Consumer

Step 1

Start by understanding the impact of millennials on your business. Affluent millennials show greater brand loyalty than other generations. Therefore, luxury retailers should strive to understand this group and their spending habits. You should have a good idea of the economic benefit this group can bring to your specific brand.

WealthEngine’s client, an iconic US-based Luxury brand, realized an ROI of 340% in just 60 days of running a direct mail campaign. The campaign helped them gain nearly 3x more revenue per customer. They were able to accomplish this by targeting a list of 22,000 households with $5M or above in net worth, and specific demographic and lifestyle attributes. Thus, their understanding of their customer led to a marked increase in revenue.

Step 2

Next, you should build on the information you already have by appending wealth, income, lifestyle and affinity information. What interests or attributes do they have in common? Do a majority of them live in one area? This information is key because it’s specific to your brand and your millennial buyers.

WE Screen can add these key attributes to your existing data. Through screening, you can develop a holistic picture of your millennial customers. Marketing to the affluent millennial customer begins with understanding their capacity to spend and their interests.

Step 3

Once you know the characteristics of your top millennial buyers it’s time to find more just like them. WE Analyze creates a look-alike model. This means you can take your screening data and run it through analyze. The solution then finds common traits and patterns among your top customers in this segment. These patterns can help you find more prospects just like them.

For example, you can find out that your customers are all between the ages of 28 and 32. Further, you can find that they are all concentrated in the Bay Area. This helps you find more prospects like them. Your marketing can already be directed to the older, affluent millennial in the Bay Area. Doing this would help you find prospects you might have previously overlooked. Secondly, it prevents you from spending on younger millennials who may not relate as strongly to your brand.

Step 4

Marketing to affluent millennials cannot be a one size fits all solution. Therefore, you shouldn’t market to all affluent millennials with a single message. This will not resonate with some of them. Be smart and focus on the ones that most resemble your customers. Then, you should personalize your message to this group.

Step 5

Finally, don’t disregard the power of taking immediate action. Consumers are 22% more likely to consider a brand as a result of real-time marketing. Your customers and prospects engage with your website and other channels on a daily basis. Identify affluent millennials are as they interact with your channels. This will help you personalize their experience on the fly.

For instance, let’s say your website sells luxury shoes ranging from $200- $2000. Knowing your customer’s spending capacity and interests will allow you to customize their experience. If you know that affluent millennial user 1 prefers high-heels in the $600 range, the website can start showing products in that range. If user 2 prefers sneakers in the $300 range, then the experience can reflect those preferences right when they open your website.

What Else You Need to Know

There is an added benefit to marketing to the affluent millennial consumer. Engaging with and cultivating them now can help you build long-term brand loyalty and lifetime customers.

Increase your understanding of the affluent millennial consumer, contact us to learn more.

Additional Articles:

Know Your Millionaire: Single Millennials

Redefining “Luxury Brand” for Your Luxury Marketing Strategy

February 7, 2017

An Analytical Approach to Wealth Intelligence: How Luxury Brands Can Grow Market Share Using Predictive Analytics and Modeling

Wealth intelligence allows luxury marketers to truly understand the affluent consumer and their wealth, demographic and lifestyle attributes. This insight is critical, as marketers work to build targeted marketing strategies that reach the most qualified consumers with compelling offers and a seamless brand experience.

The global market for luxury goods represents over $1 trillion USD, across several categories including fashion, retail, travel, hotels, food & beverage, and spas. The key to understanding customer segments within these categories is through data and analytics.

We know that by using data and predictive analytics, luxury marketers have a means to better target and engage their customers. Data and predictive analytics allow you to uncover opportunities to drive repeat or additional purchases so you can create a closer tie to the customer. Analytics allow you to truly understand the customer and their wealth attributes, so you can target the most qualified luxury consumers and offer a compelling and seamless brand experience.

With this in mind, we developed this whitepaper to show the value of wealth intelligence and predictive analytics when developing an effective marketing strategy.

Key topics in this whitepaper include:

Today’s trends and challenges for luxury marketers looking to grow your business
WealthEngine’s unique approach to developing and utilizing wealth scores
Best practices and practical tips for applying custom predictive analytics
Determining the optimal solution to meet your goals

November 4, 2016

How Can Luxury Marketers Use Social Currency to Drive Business Results?

Do you know your customers? No, do you really know your customers? As a luxury provider, you may not know them as well as they know you. You’re used to delivering a personal experience to customers you’ve won over, but the only way to attract new customers is to really understand what makes them tick. And that means creating “social currency” with them.

Simply said, social currency is the stuff we talk about with our friends, colleagues, and family. In a marketing context, it concerns the extent to which we share a brand or information about a brand with others in our everyday social lives at work, home, or in virtual social networks.

One of the biggest challenges facing luxury marketers today is how to take social media beyond just another communications channel, and use it to drive bottom line results. Social currency provides the answer. By creating social currency — that person-to-person buzz — marketers can support their objectives of:

Increasing brand awareness
Maintaining brand relevance
Improving customer experiences with their brand

Marketers can successfully drive the conversation and create more social currency by learning more about their customers and speaking directly to them. With big data, data analytics and strategic social media initiatives, marketers can now know more about their customers than ever before, and personalize communications to an extent never before possible. From purchase behavior to demographics to life style affinities, marketers can not only personalize the dialogue, they can also deliver the message in the channel that will get the best response.

As a luxury marketing professional, it is extremely important to understand the mindset of wealthy consumers, and that not all wealthy consumers are alike. You must take into consideration both the demographic and psychographic profile of your clients. Most importantly, you must go beyond judgment into a deeper understanding of what makes your target audience tick.

The better you understand about what matters most to your customers and the better you can speak directly to those needs, the more social currency you will create. Social currency will deliver more brand awareness, brand relevance, and better customer experiences, which will drive bottom line business results and referrals.

If you’d like to learn more about using big data and analytics to get into the mind of your customers, check out our free ebook: The Luxury Marketer’s Guide to Engaging and Winning HNW Customers. This simple guide will show you how to understand your customers beyond their purchasing history and walks through the strategies that innovative luxury brands are using today to increase marketing and campaign effectiveness.

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Blog Tag: Luxury Marketing