Many brands have turned their attention to the much desired luxury consumer, seeing as in recent years online sales have smashed previous records during the holiday seasons. The trend is set to increase, and that’s why it’s important to delve into some statistical facts which will help you to focus, be on-point, and grab yourself a piece of the pie. Here are the tips to help you in the process.
Don’t alienate your consumer base
The tastes of millennials are shaping the landscape of the luxury market. It has recently been calculated that the biggest proportions of the luxury market are made up of around 100 million millennials versus 80 million boomers. Although millennials account for the largest segment, it would be a big mistake to forget about the boomers.
Many brands are focused on millennials exclusively and are essentially rejecting their base of boomer customers. Some brands will only dress up-and-coming young actresses for award shows thinking that other generations of customers won’t notice. These consumers will undoubtedly move on to other brands that include them as part of the dialogue.
Provide a luxury experience
Retail is still a thriving market but you should approach it in a different way. It can be seen that luxury consumers are looking for an all-round luxury experience, not just from one particular item that they purchased that day. They need a new shopping experience which can be garnered from the look of the store, the sound, and even the aroma which helps to create an exclusive tone and emotional connection.
As well as hard to find items and one of a kind products incorporated in to the overall experience, you must also consider the interactive element of ‘experiential retailing’. Include opportunities to play with products, to touch and feel them, and to also offer spaces for hanging out with friends and to eat amazing food.
Be creative, be unique
Being unexpected will steer attention in your direction, and by incorporating your unique ideas with shareable experiences, many viral videos will be created which present your social statements, and the much respected ‘word of mouth’ advertising technique will take care of itself, virally. As this current visual design master proposes, design is communication, so your messages should be heard, and to make this happen, they must be interesting.
Merge ideas with unusual brand partners to create something really interesting and on-point that will also see you reaching out into broader audiences. Connect with your customers and reward them with rare chances to meet artists and designers and to gain access to unique in-store events.
Understand and utilize consumer behavior
Considering the uneven balance in the luxury market, it’s worth knowing that your millennial customers are much more susceptible to trends, they are in fact three times more likely to follow trends than other consumers, so pay attention to what trends are being set and followed by this age group.
The disparity in the tendencies between customer groups creates opportunities for you to bisect your marketing in order to better target the two biggest audiences with a more refined focus. There is also an opportunity here for you to increase your customer base and overall sales. Bear in mind that millennials are more likely to purchase services and short-lived experiences.
Expand luxury to your online services
Those that shop in store have more time and expect to experience the luxury throughout their purchasing journey, not just in the products that they buy. For those that have less time, which according to statistics is an ever increasing 40% of the luxury consumers that all expect home delivery, and of course also expect the luxury experience; but how to achieve this outside of the store?
One thoughtful, generous, and enticing idea is through gifts, as customers expect a little reward for their brand loyalty, especially around the holiday season. Another way is through personalization; almost half of luxury consumers are seeking such products and services. The final idea which is key across all brands and businesses is top-level customer service from the outset, whether online or in-store.
Learning and implementing these tips will see you understanding the luxury market and its customers much better. You will be able to target and connect with all audiences in the best ways and by getting creative with experiential retailing, you will see them coming back in store again and again.
By Jennifer Hahn Masterson Courtesy TheTopTier Digital Media
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