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.