Archive for February, 2015

Know Thy Luxury Customer

Thursday, February 26th, 2015

Luxury brand marketers are mounting data-driven omnichannel campaigns via email, direct mail and digital display to form customer relationships.

Luxury brand marketers are learning more about their audience in order to form better relationships with them.

The intel you can collect on customers is very useful for building stronger relationships with them. Think about it – the more you know about your own clients or colleagues, the better you can engage with them. Stronger friendships are built on continually getting to know each other better.

This is particularly true with ultra-high-net-worth (UHNW) prospects and customers. The more you can speak to their unique desires and aspirations, the more you can satisfy them with your luxury brand. According to the “Luxury Sentiment Survey Report,” if you can engage the ultra affluent consumer in all areas, it will strengthen the relationship and generate long-term revenue.

Luxury brands are moving beyond the store to omnichannel lifestyle marketing to cultivate relationships that engage their customers and those in their social circles. This all sounds pretty good in theory. Now here’s how you can put it into practice:

Where does your prospective audience go online?
If you knew, you could serve them digital display ads and video whenever they go on the web. Better yet, just meet them at whatever websites they visit with targeted digital campaigns that tweak their curiosity.

Who are their friends, family, and colleagues?
Be sure to keep them in the mix with multichannel messaging. This can get a conversation going among your customers’ connections, which in turn can lead to a desire among more people to know more about your brand.

What do they own?
Do they have second home? A share in a fractional jet? Art and antiques? If you know the types of ownership, you can work that into your messaging to generate interest in other areas.

How big is their family?
Are they married? Do they have kids? What ages? Get to know the whole family and you’re golden.

What’s their net worth?
Generally this data is not even available – and data that is available caps out at $1MM+ in investable assets. Normally all you get is income data. But income is meaningless in the UHNW world. You need to know what their investable assets are if you want them to peel some off for your luxury brand.

Who are they really?
Many luxury marketers miss huge opportunities by not understanding who their best customers are. Therefore they don’t interact with them in a relevant, personal, and meaningful manner.

Research has shown that omnichannel customers are often the most valuable from a spending perspective. The most successful luxury marketers deploy customized messaging powered by key data points across various channels that shows customers how the brand fits into their life and into their circle of friends, family, and colleagues.

Today’s consumers actually “expect all data stored about them to be targeted to their needs or used to personalize what they experience.” However, if your brand doesn’t have a clear picture of your prospects, you cannot fulfill these expectations. Because Wealth Window is fueled by data surrounding positions, possessions, and proclivities, you have a pretty good idea of the type of person you’re talking to as well as their friends, family and colleagues in their social circles. In luxury marketing, it helps to know people well in high places.

The Rising Tide of Mass Affluence Among Women

Wednesday, February 4th, 2015

Women are experiencing a rise in female mass affluence and are prime prospects for luxury marketers and financial service providers.

America is seeing a rising tide of affluent women becoming captains of their own ships.

Now that women control half of the private wealth in the country,* it’s time for financial service providers, luxury real estate marketers, non-profits seeking high dollar gifts, and every other purveyor of upscale goods and services to focus on them.

Over 41% of Americans with incomes exceeding $500,000 are women. By 2020, women will account for $22 trillion in spending as wealth continues to shift from men to women. There are numerous reasons for this trend. Here are the top 3 that I can see:

 
Constituting half of the U.S. workforce, women are empowered to take charge, “lean in,” and demand more pay. In fact, two out of five working married affluent women age 40-69 report that they earn the same or more than their husbands. Yet when it comes to investing, they lack confidence. An overwhelming majority say that it is important women have confidence in their ability to invest, but only 8% say they are. Clearly this presents a huge opportunity for financial advisors to specifically reach out to affluent female investors.

There’s a large and growing leadership of elite female role models soaring to new heights in formerly male-dominated business sectors. Here are just a few that quickly come to mind:

 
And that’s just the tip of the iceberg. A society where women can rise to the highest levels of net worth makes it possible for women in general to attain mass affluence. This rising class of self-made professional women is making a huge impact on the economy. It’s a force to be reckoned with and I suggest that a good start is to speak to affluent women as primary decision makers in a voice that will resonate with them.

* Source: The Power of the Purse: How Smart Businesses Are Adapting to the World’s Most Important Consumer – Women

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