Exclusivity, brand legacy, and reputation are the foundation of luxury brands. But would these be enough to hold today’s affluent customers?
Premium customers are barely loyal to the brands now. 56% of the customers’ brand loyalty priority decreased than last year. As consumers’ definition of luxury is constantly evolving, the brands need to upgrade their old-fashioned marketing strategies to hold back the customers. Here are some tips that will help redesign your luxury brand to attract and hook a modern affluent crowd.
Connect With Young Affluents
Having direct conversations with young affluent customers will contribute significantly to foster loyalty. The luxury consuming percentage of generation Y and Z will go up from 47% to 55% within 2020. To keep expanding the business, maintaining this crowd is paramount. Here are some tips on how to keep this section engaged.
● Social Media Engagement:
Social media is a great way for 95% of Gen Z luxury consumers to communicate with their preferred brands, although, all of the big audience of social media doesn’t convert to luxury customers automatically. To hold on to the exclusivity introducing content and campaigns about aspirations (instead of accessibility) would help big time. Working with social media influencers could help them shape their decisions, and take advantage of the e-commerce feature on social media like shoppable posts and Instagram checkout for an effortless shopping experience.
Sustainable mindset influences about 60% of Gen Z luxury consumers. Highlight the use of responsibly sourced and eco-friendly materials in your marketing strategies. Also, point out your efforts to keep the production harmless to nature. Publish a sustainability report proving your seriousness toward environmentalism.
● Promote individuality:
Modern luxury consumers prefer items that reflect their individuality. Let the customers customize their products using an in-store booth with the help of an artisan to make their desired personalized product. Create an online option for the customers to design their products and have a visual of the finalized product before purchasing.
● Invest in Collaborations:
Creativity is the core element to be relevant and to earn customer’s loyalty in this advancing world. Collaborations are one of the best ways leading to great innovations. Besides increasing brand awareness collaborations also increase the probability of a customer making a purchase. Keep the following tips on mind while planning a collaboration strategy:
● Collaborate With Brands:
Make your brand more charming and keep an eye on the rare and overwhelming partnerships to highlight your brand. Going back two years, Louis Vuitton the premium luxury brand and streetwear brand Supreme launched a limited-edition clothing and accessories series.
Make sure to collaborate with a well-known brand to avoid brand dilution and to ensure mutual profits off the collab. Consider launching special products by combining luxury with streetwear to your millennial and Gen Z audiences.
● Toss Limited Editions:
Launch limited edition collaborated products to keep the hype up. Keep your concept of limited edition products creative, genuine, and one of a kind to keep the focus on your brand. For example, Bergdorf Goodman and visual artist Leah Tinari collaborated on International Women’s Day to create a new logo and drop a new set of designer limited edition products. To ensure the product’s safety and to preserve the exclusivity, set the products at a selected inaccessible place.
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Upgrade Online Shopping
38% of the luxury purchases are made over the internet, although most of the luxury brands are now online-based, customers find the experiences very different from what they are familiar with. Every brand has a different effective strategy – but these three widely used strategies below, are efficient digital experience provider to keep your brand’s dignity intact:
● Website Personalization:
About 45% of luxury consumers prefer having personalized products or services with more options available. Serve each country with a different local website, set a customizable guide with sizing details to help the consumers, have an expert to help with the online inquiries, send customized recommendations to the website surfer using an e-brain software.
● Mobile App:
Offer facilities like multiple payment options, synchronized shopping carts, and visual search in your mobile app for a quick shopping. Utilize high-tech, as in augmented reality to allow customers to test/experience your products before buying.
● Omnichannel Experiences:
Pay attention to your omnichannel strategy to provide altered consumer experience, and let your customers communicate physically and virtually with your brand. Actual product availability online and offline/in-store, returns and replacements, and click & collect are crucial omnichannel services. Take Cartier for example, they provide customers with free returns and Shop Online and in-store Pickups.
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88% of the luxury consumers claimed that they purchase luxury products because of their premium quality, which pushes up the product’s quality on top of everything else.
Here’s how you can put your product’s quality in the shop window:
● Highlight Artistry:
Craftsmanship is one of the many reasons people buy luxury products. Spotlight the products by using unique artwork and solid designs that show creativity and skills. Bottega Veneta’s leather bags steer clear of branding, but the luxury consumers preferring simplicity are easily attracted to these bags.
● Offer Handmade Products:
There is a large group of luxury consumers considering hand-made products to be well-crafted. Put tailor-made or limited-edition collections forward to these customers. Allow your customers to see the gleam of authenticity coming out of your products.
● Introduce Specifics:
Consumers love knowing the deets of the products they’re using. Showcase the production materials and proper techniques to highlight quality. Top luxury brand LMVH’s Journées Particulières program allows luxury consumers to visit workshops and shows the process of luxury product crafting.
About 59% of the premium luxury consumers are mostly influenced to make purchases from the brands they are emotionally connected with, and 53% of them are ready to pay extra to cherish that connection. Follow these strategies to build an emotional relationship with your affluent customers:
● Memorable Experiences:
Gift the luxury consumers unforgettable experiences to build an emotional connection with them. Launch aesthetical interactive stores including facilities for customers to have fun, chat with like-minded people, and engage in brand interaction. Customers are allowed to experience watching artists and designers work in an on-set workshop at the Hermès Carré Club.
Share your success story to build a firm connection with your customers. These stories are a way to tell customers about your brand’s value, heritage, tradition, and production. Share relevant content inspired by real stories to keep customers in the front line.
Create a big blast using the previous campaign to maximize the audience’s reach to a whimsical degree. Recreate scenes with classic visual and verbal cues, flip and remix the story to make a greater impact. Leading brand Tiffany and Co’s honored 1961 movie Breakfast at Tiffany’s and gifted a modern version of the classic Moon River in their Believe in Dreams campaign.
Brands must come up with new ideas constantly to stay relevant to the trends and to hook customers to them because the definition of luxury changes and evolves continuously. Include attributes like peace, vitality, and well-being in your services to provide the best experience. Reduce offering entry-level products, limit sales sessions, and set up off-price outlets in a distant place from city center stores to preserve exclusivity. Last but not least, modern luxury consumers still seek the same high-end quality – with a fresh crispy twist.