Main keyword: Luxury marketing
Related keywords: Luxury market – High-end customer – Exclusive marketing – Luxury brands – Customized products
Summary: The luxury market is a highly lucrative market to be in. However, marketing to high-end customers is very different from marketing to everyday customers. In order to attract and keep a high-end customer base, it’s important to show them an exclusive, luxury and high-quality experience and lifestyle and not just selling a product. Which is why developing a solid brand image through unique marketing tactics is critical.
How to Attract High-End Customers in the Luxury Market
The approach to marketing in the luxury market differs significantly in many areas compared to other markets. The expectations of a high-end customer are very different compared to those of a regular customer. Even though the luxury market is difficult to break into, it presents excellent opportunities to earn high profit margins on products or services. Luxury markets are usually always lucrative regardless of any socio-economic situation including recessions. For instance, during the Great Recession, luxury brands like Louis Vuitton and Hermes increased their brand value while other stores went out of business.
Quality
Luxury consumers expect a certain level of sophistication and detail in their products. Which is why getting the best materials possible and providing the most high-quality craftsmanship is crucial to developing a luxury brand image. Consistency amongst your products and services is also important. Your customers are willing to pay you handsomely but expect to receive consistent quality products and services. This means that you need to keep this quality throughout the whole experience your customer has with your business including customer service.
Pricing
Price is not the primary concern of a high-end customer, which is why your brand needs to focus on demonstrating the value of your product or services instead of competing on price. Decreasing your prices can actually backfire in the luxury market; your consumers may get the impression that your products are of lower quality. Your pricing needs to be in the range of your competitors and not lower than them, because lower prices can negatively impact how your customers think of your business.
A good strategy is to make quality a focal point of your marketing campaigns and set your prices to match. High-end customers won’t mind paying a premium for your products if they believe that they are truly getting a high-quality product.
Exclusivity
The everyday consumer is fine with mass-produced products but the high-end customer wants something that not just everyone has. One way to create this exclusivity is to release small quantities of your products or limited-edition products. This will ensure that only a small group of your customers will be able to get these items which will in turn, make them seem much more exclusive. Don’t be afraid to alienate customers who don’t fit your customer base and don’t try to broaden your customer personas because then you will lose exclusivity.
You may be giving up potential sales by releasing small quantities of your products at premium prices, but it will pay off in the long run. You are creating a brand image that is far more important than getting a few more sales. You will gain the respect of your target audience and they will know that they need to purchase your products immediately because they may not be able to later.
Marketing Channels
You need to be careful where you advertise your products. Sending out mass emails or putting out your advertisements anywhere and everywhere will not yield the results you want, and will take away your exclusivity factor. Magazines and websites that focus on luxury topics and finance are the perfect choices for reaching your target audience. Running targeted ads or sponsored posts can yield the results you want.
Social media can also be a good choice. Influencer marketing is an effective way to attract customers but you need to be careful with who the audience of the influencer you are choosing is. When people see their favorite influencers using your products, it will incentivize them to use your products as well. Remember that your main goal is not to get as many sales as possible, but to build your brand image in a way that your customers associate it with exclusivity and quality, and are therefore willing to pay premium prices for it.
Creating urgency
In order to create that sense of exclusivity, you need to remind your customers that there are only a few copies of the product they are buying. However, instead of using phrases such as “limited quantity”, you can use a different language to attract customers and create an urgency to buy the product. You can use phrases such as “Only one left in stock” or “Hurry! Just three left!”. Knowing that the item they are considering to buy could run out of stock any second motivates your customers to immediately buy that item. Creating a countdown for how much time there is left of a sale or online event can also have the same effect.
Loyalty programs
One of the most effective customer retention practice in the luxury market are loyalty programs. They need to be treated in a way that makes them feel as valuable assets to the brand. Providing loyal customers with access to first-looks for new products, rewards for money spent on products, and primary access at events are some ways you can communicate this exclusivity to your customers.
Location
The location of your business is crucial to becoming part of the luxury market. You’re selling a lifestyle as much as you’re selling an actual product. You need to fit in the image that your consumer has of this luxury lifestyle. For instance, 5th Avenue in New York City is filled with luxury stores while you can’t find any of them in any other part of the city. You need to project a certain level of success to your customers and the location of your business is an important part of that.
Customization
Another way to create that sense of exclusivity is to customize your products. Allow your customers to tailor products to meet their individual taste. This will help you avoid the stigma of having your products feel overly mass produced. Customization will help develop customer loyalty and set you apart from your competition.
