Marketing to the Luxury Consumer: For Retail Businesses
Photo courtesy of Andie Kully
Businesses that sell a product direct to the consumer (B2C and CPG) can leverage their tangible goods to offer seamless experiences and build long-lasting relationships with the luxury consumer. Here are ways a retail brand can better speak to the luxury consumer:
1. Personalized marketing.
Understanding where your luxury consumer is spending time (both online and in real life) is crucial to knowing where your product should be advertised. The luxury consumer will appreciate relevant ad placements and is more likely to put faith in a new product that associates with a more established luxury brand. For example, a new luggage company might pay for print ads in Conde Nast Traveler, or at least run targeted social media ads towards followers and subscribers.
It’s important to note: the cost of printing in a magazine, for example, may be more expensive than social ads, but does eliminate a large majority of the “aspirational luxury consumers”. Someone who aspires to live a life of luxury may follow the Mandarin Oriental on Instagram, but only guests will pick up and see an ad placement somewhere on the property of the hotel. Using the luggage company as the example, however, this may not matter to you if you offer a range of price points amongst your products (meaning both groups are viable customers).
2. Easy-to-use and responsive website.
How many clicks does it take for a user to go from your home page to the check out confirmation screen? Is the checkout process easier or more difficult from desktop to mobile? How are you integrating a personal experience into a digital platform?
”In a study from Forrestor Research Inc. 51% of luxury shoppers expect retailers to have a mobile site, 49% expect a mobile application and 43% expect to be able to make purchases on a mobile site or app.” Source
Luxury consumers still favor the in-store experience and are using websites to reaffirm their purchasing decisions.
”Google reported that 78% of luxury shoppers look online before making a purchase and have twice the smartphone penetration.” Source
Knowing this, making sure that your website mimics the same level of luxury customer service as one would expect in a brick and mortar location is crucial:
”Online fashion retailer Net-A-Porter recently began selling higher-end jewelry from Cartier and Gucci. These items historically were purchased in-store due to the intricate nature of the product and higher price points.
Net-A-Porter offers its online customers a 24/7 concierge, allowing them to call at any time with questions. In addition, in select cities, clients can test a product for 24 hours and then return it if they do not like it.
In this way, Net-A-Porter is creating online experiences, while linking customers to the physical world.” Source
3. Brand-specific app.
Build brand loyalty and make your storefront more accessible by going beyond an e-commerce website and creating a brand-specific app. While luxury brands are slow to adapt this strategy, apps are an effective way of building long-lasting relationships with the luxury consumer. Consider your app like a storefront your luxury consumers carries in their pocket: it’s the quickest way to buy from you.
When luxury consumers were asked what perks they’d expect from a brand-specific app:
”Loyalty programs (46%) and early access to sales (45%) were the leading features these consumers anticipated a luxury brand mobile app would provide.
”Affluent consumers expect the same level of service from an app as they do from an in-store experience. It’s a win-win for luxury marketers if they can translate the mobile touchpoint into sales.” Source
An average consumer expects a 10-15% off coupon upon arrival to your store; a luxury consumer expects exclusive access to limited inventory. The difference is valuing exclusivity and rarity over a deal.
”Affluent consumers expect the same level of service from an app as they do from an in-store experience. It’s a win-win for luxury marketers if they can translate the mobile touchpoint into sales.” Source
4. In-person experience.
When it comes to the luxury sector, human interaction and in-person experience still reigns as the most effective marketing method.
”On average, 63% of luxury products are still bought in physical stores. There is still a desire for luxury consumers to touch, smell, see and experience luxury, making retailers rethink how they attract customers to bricks- and-mortar stores in the current digital age.” Source
A luxury consumer wants to experience a completely unique experience when entering a store; one that feels personalized to them and only accessible to a small few. This is why we see luxury brands getting on board with experiential, pop-up spaces.
”Last fall, Louis Vuitton created a New York pop-up store showcasing vintage trunks from 1854 to present. This highly successful event created an experience for its clients and strengthened their connection with the brand.
In celebration of the 80th anniversary of its iconic silk scarves, Hermès hosted worldwide pop-up laundromats in 2016 for customers to bring their Hermès scarves to be dyed in one of four color options. Not only was this experience highly Instagram-worthy, it connected people with the brand, created excitement, and garnered publicity and buzz for Hermès.” Source
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