Archive for the ‘Affluent Digital Audience’ Category

Luxury Brands Must Control Their Destiny

Wednesday, April 5th, 2017

alc_wealth_window_luxury_brands-300x198A few weeks ago, it was announced that Neiman Marcus may be acquired by Hudson’s Bay. As we all know, evolving consumer shopping behavior and other factors continue to drive change in the luxury retail sector.

While retailers remain critical to many luxury brands’ success, we’re finding that more brands are taking control of their destiny…

Naturally, retail is key in luxury. It always has been. It always will be. But in our changing world, the more you know about your customers and prospects, the better off you are! There’s an old saying, “Trust in God, but tie-up your camels.” I say, trust in your retail partners, but own your own data!

Seriously, if you’re interested in understanding the benefits and options in having a custom-built audience or licensing data – and giving yourself an insurance policy – I’m happy to help!

The Magic of Q1

Tuesday, January 10th, 2017

First, I hope you had a Merry BIG Christmas. I am overjoyed that so many of our Wealth Window clients reported a strong season!

As you begin 2017, I suggest you take advantage of what I call, “The Magic of Q1.”

Our experience shows that Q1 is a terrific time to test: a new strategy, a new audience, and a new channel. In fact, January and February are two of the best performing months for marketing. Additionally, if your new strategies prove successful in Q1, you can benefit all year. Conversely, if they underperform, you can cut your losses quickly.

When it comes to testing, we suggest a “Structured Spending” approach for many luxury brands: 70% of your dollars go to what has proven to work; 20% is invested behind strategies that show real promise; and 10% is allocated to dramatically different approaches that have the potential to deliver vast improvements.

Here are a couple of exciting ideas we’ve seen work for our clients:

 

Thankfully, as we enter 2017 things are looking bright. The market remains strong. Consumer optimism is high. And government policy should be advantageous for luxury brands.

Yet since markets and consumers can be fickle, you won’t want to lose any time testing innovative strategies in Q1. I’m happy to help in any way I can to ensure you experience a magical first quarter.

The Global Landscape of HNWI is Changing

Friday, July 29th, 2016

Capgemini’s World Wealth Report 2016 was released a few weeks ago, and it contained a wealth of extremely interesting findings that point to a changing global landscape when it comes to high-net-worth individuals.

The report highlights many intriguing figures and observations about global wealth, including the eye-popping projection that high-net-worth individuals’ assets will likely top $100 trillion by 2025 – less than a decade away.

Net Wealth on the Rise in Asia Pacific Region

The report from Capgemini covers 71 countries and features financial data obtained from surveys conducted with over 5,200 high-net-worth individuals from 23 countries, as well as 800 wealth managers across 15 different markets.

Among some of the most surprising findings is the meteoric rise in wealth of the Asia Pacific region, which has the greatest collective wealth of any global region, thanks in particular to China and Japan. While most of the world witnessed a slow-down in the growth of their high-net-worth wealth, the Asia Pacific region saw their net growth top 4 percent in the past year.

This accelerated growth in net wealth is not an aberration – in fact, it’s anything but. Capgemini projects that that by 2025, the Asia Pacific region will total 11.7 million high-net-worth individuals, which will greatly outpace North America’s projected total of 7.6 million.

How HNWI Allocate Their WealthTargeting really rich consumer prospects for luxury brand marketing.

The Capgemini report also details how high-net-worth individuals are allocating their assets globally. According to their findings, HNWI have around a third of their total assets liquid in the form of cash or in bank accounts, while another third is invested with a wealth manager and the remaining third is split between real estate, business ventures, and other liquid assets.

A particularly interesting finding to note is the shifting preferences of younger high-net-worth individuals, in regards to how they handle their assets. Millennials and under-40 investors have tended towards banks and cash for allocating their wealth, opting for more liquidity in their assets and showing an aversion to wealth managers.

This presents an interesting dichotomy in how different generations view asset allocation, and it forces financial institutions to adapt to the needs of tomorrow’s wealthy as the percentage of younger high-net-worth individuals continues to rise across the globe.

In addition, Capgemini found that 31 percent of high-net-worth individuals use their wealth to contribute to social causes, and that half of all the world’s wealthy plan on increasing their contributions to social impact causes over the next few years.

Luxury Buyers are More Discerning than Ever

With a globalizing luxury market and volatile economy becoming more of the norm, high-net-worth individuals are much more careful with their money and how they spend it. The need to make smart investment decisions, coupled with an increasing number of options available for consumers, has led to more discerning and demanding luxury buyers. As digital channels enable consumers to explore more investment options and conduct their own research, luxury brands will have to adapt to a rapidly changing market in order to appeal to the evolving needs of consumers.

Time for the Luxury Market to Capitalize on Evolving Global Wealth

As the global wealth landscape continues to evolve, the luxury market must evolve along with it. From wealth managers to investment firms and luxury brands, the ever-changing needs of the world’s wealthiest are becoming more and more diverse – just as diverse as the demographics that comprise the global population of high-net-worth individuals. Despite such a constantly shifting landscape and an increasing number of digital channels through which to communicate, Wealth Window can help you gain direct access to a powerful audience of high-net-worth individuals and generate sub-segments based on various attributes including net worth, home value, luxury travel, power spending and more.

Are you ready to reach high-net-worth individuals with your strategy and messaging? Contact me to learn how.

Luxury Consumers Are More Plentiful and Powerful Than You Thought

Wednesday, September 9th, 2015

Luxury Consumers

Luxury Consumers Wield Purchasing Power

Luxury brands would be smart to invest heavily in marketing given the U.S. market’s current state and projections.

The luxury goods industry in America is flourishing, growing and evolving all at once. As marketers work to refine and optimize their brands for digital, they’ll find that their audience is actually much wider than historical data suggests. Likewise, the top tier of luxury consumers is continuing to reinforce their financial strength. Here’s what you need to know:

Affluent Consumers Have Company
MediaPost’s Engage:Affluent found that 20 million adults with annual household incomes of less than $75,000 bought one or more luxury goods last year. Add that to the 22 million categorically “affluent” adults with household incomes between $75,000 and $250,000, and it becomes clear that the pool of luxury-inclined consumers is more like an ocean. It’s also safe to assume that many non-affluent luxury purchasers have the potential to become the next power spenders.

Affluent Consumers Have Power
According to Ipsos, affluent shoppers spend 3.2 times more than the average household in many luxury categories.

Furthermore, the Engage:Affluent survey showed that 21 percent of non-affluent luxury purchasers bought only one luxury item in the past 12 months. 30 percent of affluent households with incomes between $75,000 and $250,000 bought six or more luxury items, and more still – 36 percent of households with incomes of $250,000 and higher – also bought six or more items. Meanwhile, only 14 percent of households with incomes under $75,000 reported buying six or more items, and their repeat purchasing peaked at just 3 items (28 percent).

The takeaway here is that while non-affluent consumers add to the market’s depth, the true spending power remains with the affluent. Nearly half of affluent buyers spent $3,000 or more on their most recent purchase, compared to the one in six mass-market purchasers who spent that amount. Overall, affluents represent roughly 50 percent of the nation’s income and 40 percent of all consumer spending, HubSpot notes.

The Consumer Base is Growing
In 2014, Reuters reported that the global number of luxury buyers had reached 330 million and was expected to swell to 500 million by 2020. The numbers came from a Bain & Co report that also confirmed the power of affluents, as the study found that more than half of global luxury spending came from the wealthiest age bracket, those 49 and older. While many of the 10 million new luxury consumers per year over the next four years will be attributed to rising wealth in other parts of the world, the U.S. will certainly carry its weight as those with luxury tastes and emerging wealth begin to realize increased spending power.

Luxury Brand Buyers Are At Your Fingertips
Luxury marketers and agencies can take advantage of these buying trends by directly targeting the ultra-affluent. With Wealth Window’s Power Spenders database, you can reach more than 21 million consumers with high discretionary spending on non-essential items. These individuals define the luxury lifestyle and spend freely on the brands they love. So, are you ready to connect with them? Click here to learn more.

Who is the Affluent Millennial? 3 Things We Know

Thursday, July 23rd, 2015

affluent millennials

The Millennial 1%: Young, Rich, and Redefining Luxury

There’s a wave of new money in the consumer marketplace, and it’s coming from a group you might not expect: millennials.

While much of Generation Y is plagued by historic student loan debt and jobless woes, more than 6.2 million millennials ages 18-34 have household incomes over $100,000, says millennial marketing expert Jeff Fromm.

According to the 2014 Ipsos Affluent Survey USA, millennials now account for nearly a quarter of affluent U.S. households and counting. These are young, successful and savvy professionals who – as they enter their collective stage of wealth accumulation – are changing the way marketers and brands communicate their messages. While they only comprise less than 10 percent of their demographic, affluent millennials carry significant social and financial influence among their generation, which represents roughly one-third of the entire U.S. population.

Who exactly is the affluent millennial? What are their preferences and tendencies? How are they reached? Here are three things we know:

1. They’re Moving Fast
According to Fromm, 50 percent of affluent millennials are married, and six percent are engaged. Affluent millennials are also more likely than their non-affluent counterparts to be expecting a child within the next year.

Emerging from the challenges of the recession with confidence in their financial standing, affluent millennials are not afraid to make life decisions. They’re starting families, buying homes, making investments, running businesses and launching new ventures – all in their 20s and 30s.

2. They’re Redefining Luxury
Affluent millennials are rewriting the definition of luxury. In 2012, luxury advertising executive Duke Greenhill addressed their pull in a popular Mashable article titled, “How Brands Can Prepare for Affluent Millennials.”

Greenhill made three key points in the shift from the luxury baby boomer segment to that of Generation Y:

  1. Millennials appreciate craftsmanship and design.
  2. Their quest for status and achievement is ongoing.
  3. They see luxury value with a pack mentality that Greenhill describes as “inclusive exclusivity.”

Wealthy millennials are less driven by blind brand loyalty and more attracted to experiences, stories and adventures. More importantly, they’re expected to dominate the luxury marketplace within the next few years.

3. They’re Dictating the Marketing World
It’s no secret that millennials love social media. They invented it, and it’s their preferred method of communication between brand and consumer. 88 percent of affluent millennials visit at least one social network per week, with Facebook being the most prevalent. This explains why mobile advertising drove 73 percent of Facebook’s revenue in Q1 of 2015.

Social media is just the start, though. Fromm’s assertion that affluent millennials “feel more confident in their decisions and don’t require as much hands-on assistance from brands” aligns with the inbound marketing boom we’re seeing today. According to the Content Marketing Institute, 72 percent of B2C marketers were producing more content in 2014 than they were the previous year. To a similar tune, Curata found that 71 percent of surveyed B2C marketers said they would increase their investment in content marketing “without a doubt.”

In place of the traditional aggressive sales mindset, Fromm says the focus for marketers has shifted to a hands-off approach. This is particularly true in the financial arena, where he notes Charles Schwab and American Express as successful purveyors of content that affluent, inspired millennials find useful and engaging.

The Key Question for Marketers: Will You Reach Them?
The affluent millennial may seem like a needle in a haystack – an average looking 20-something at a hip bar in a big city. But with Wealth Window, you can gain direct access to this powerful group. Better yet, together we can generate sub-segments based on various attributes including net worth, home value, luxury travel, power spending and more.

The question now shifts from means to action. Are you ready to truly reach affluent millennials with your strategy and messaging? Contact me to learn how.

The Digitizing of Political Campaigns

Wednesday, March 11th, 2015

Affluent online political donors by party affiliation available for digital display advertising.

Political campaigns need to target wealthy online donors by party affiliation to maximize contributions and social media interaction.

At first I couldn’t believe my eyes: “Spending on Digital Ads is Up Almost 2,000 Percent for the 2014 Election.” Nothing I know of goes up a thousand percent each year.

As a provider of both online and offline marketing data, I discovered more about this digital advertising juggernaut:

I also learned that voters who follow political figures on social media rank among the higher value constituents a politician can serve. According to the Pew Research Center, they participate in campaign activities at high rates—volunteering, donating money, and encouraging others to add their support. The web is becoming the new frontline in the battle for supporters. As Dan Pfeiffer, the president’s senior adviser, said, “To not have an aggressive social media strategy in 2015 would be the equivalent of not having an aggressive TV strategy in the 1950s. We have to go to where the conversations are already happening.”

Politicians and their organizational backers are aggressively vying for voters to “Like” them on Facebook, watch their YouTube videos, and follow them on Twitter and Instagram — Instagram being the latest social media territory for politicians to leverage.

For example, there are several Instagram accounts associated with Rand Paul, a 2016 senatorial candidate and potential presidential candidate. His personal account, “senatorrandpaul”, shows 81 posts and nearly 8,500 followers as of this writing. His PAC-operated account, “randpaul2016,” shows 124 posts and nearly 3,000 followers. I am guessing that many of these followers are also contributors to the political campaigns and PACs. (How else are you going to attract thousands of followers with just a few dozen posts?)

Politics has always been about getting the message out and controlling the daily news cycle. Now it’s also about round-the-clock messaging to followers with digital snapshots, 100-character tweets, and viral videos. Today’s online electorate has influenced media planners to place increasing emphasis on digital media budgets, which are eclipsing traditional advertising outlets at a pace never before seen.

Organizations operating social media accounts for their candidates and causes are big spenders in political digital advertising. They need online followers and the best way to capture them is online. As the 2016 general election heats up, the web is already blowing up with political display ads and videos.

The battle to control the hourly news cycle for this upcoming election is going to get costly. Politicians and organizations need to capture big-time donors to fund their social media strategies and the best way to do that is by reaching wealthy, politically-motivated donors 24/7 wherever they go online. I suggest this can be accomplished by attracting wealthy donors by party affiliation to donor landing pages with digital display ads and retargeting them should they leave without taking action.

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

Luxury Holiday Shopping on the Rise

Monday, December 8th, 2014

Last week, I read a study predicting that affluent shoppers still feared slow economic recovery and didn’t plan to spend as much as in previous years, which would be bad news for luxury retailers.  So I decided to see for myself. With my sample size of one, I went to an upscale mall to people watch and I have to disagree.  My study and a report from Mediapost, say the numbers look more promising than ever.

 

With desktops and smart phones connecting affluent shoppers 24/7 to their favorite retailers, shopping is no longer confined to traditional brick-and-mortar store hours. “Convenience is incredibly important, particularly to the upscale shopper,” said Bob Shullman, Founder/CEO of the Shullman Research Center, New York. In fact, in he cites, seventy-five percent of consumers with a household income of more than $500,000 plan to shop through an online-only retailer this holiday season.

And it isn’t over on Black Friday…or even Cyber Monday. Holiday shopping momentum often carries through January, partly through gift-card redemption and after holiday sales.

Regardless of where or how the affluent shop this holiday season, the type of gifts they give are changing from the usual jewelry, technology, food and wine to the developing trend of making charitable donations. I have also read reports that affluent families are feeling more confident about the recovery and their financial stability and will opt for the gift of travel for their families.

What does it all mean for marketers? Just as shoppers start early and finish down to the wire, there is still time to engage affluent shoppers, particularly with email and digital communications.  

Tweet us @WealthWindow and let us know if you are seeing the same trends this holiday season.

Wealthy Millennials and Boomers Are Two Completely Different Animals

Monday, March 31st, 2014

marketing to wealthy millennias and boomers

Are you marketing to a lion (Boomer) or a panther (Millennial)?

It used to be that there was old money and new money and the methods of marketing to both was relatively similar. The nouveau riche aspired to be just like the upper class. They wanted to look like them. Act like them. Be them. Everyone of means lusted after the same status symbols of wealth.

Not so today. Affluent Boomers, or today’s wealthy establishment continue to seek and display the trappings of their wealth. Today’s new rich? Not so much. Just take a look at their role models—the hoodie-clad Mark Zuckerbergh vs. famous faces of mature money, say, the buttoned-up Bill Gates.

The conspicuously consumptive Boomer millionaire is vastly different than the more modestly prosperous Millennial. They are two very different animals—like a lion (The Boomer) vs. a panther (The Millennial). The King of the Jungle struts around in full mane to appear larger and put on a display of intimidation. The panther on the other hand is the stealthy Ghost of the Forest.

Are you marketing to a lion or a panther?

If it’s the lion you seek, traditional methods of direct mail continue to work extremely well. Give it a big juicy catalog rich in photographs of luxurious products, 5-star amenities, and other ways to show off their obvious wealth.

But if it’s the panther you’re after, you need to be a little more stealth yourself. This creature is accustomed to quietly consuming personalized content relevant to their interests. You see, Millennials expect the companies they do business with to be smarter about their marketing. Marketers need to recognize the changing tastes of the younger rich and communicate accordingly. This group is more about the brand experience than putting their brands on display.

To be sure, multichannel marketing is a given in our current media jungle. But the allocation of budget in the media mix must be adjusted accordingly. Heavy up on print, supported by email and digital when tracking down rich Boomers. Go a bit easier on print and stronger in the digital and email realm when setting your sights on Millennials. Timing can be tested too. Serve digital and email messaging to Boomers by day and to Millennials by night.

Successful luxury marketers are quickly taking note of these differences in both creative approach and in the media mix. Boomer money craves status and Millennial money seeks experience. This needs to show not only in where you deploy your communications, but also in how you speak to these wildly different audiences of affluence.

Therefore, the age of your high-income luxury audience plays as big of a role in the success of capturing market share as does net worth. You can still sell the steak of your luxury brand to both generations, but it’s all in how it sizzles for each is what will make the difference.

Play to Win When Targeting the C-Suite Consumer

Friday, March 14th, 2014

targeting marketing to affluent executive consumers at home and business

Targeting affluent executives at home and business is a winning game plan for luxury brand marketers.

Luxury brand marketers can take a page from the big ticket B2B playbook in capturing the attention of busy, high-level executives. You can find a few choice pointers in this article on How to Reach the C-Suite:

 

I agree with all of the above, and I see exactly how this can play out in upscale consumer marketing. After all, if you follow the money in big-ticket consumer spending, it’s in the hands of the highest paid executives.

Three Big Plays You Can  Make Now  to Acquire C-Level Customers”

1) Add Multi-touch to Multichannel

C-Level executives are running and gunning 24/7 at work, at home, on the go. A well-laid plan to break through to them requires contact information at multiple touch points and channels. You need to address them where they live and where they work. Follow up with email. Then follow them wherever they go on the web with digital display and video.

2) Get Your Hands on Need-to-Know Data

In today’s world of relevancy, your marketing is only as good as your intel. Is your C-Level prospect married? Does she have children? Where does she work? What’s her job function? What’s does her company  do? Company sales? Company size? Her own personal net worth?  Hobbies and interests? This is need-to-know personal and business information if you want to be hyper-relevant.

3) Reach Out to Their Connections

C-Level executives seek the advice of others. Makes sense. Family members, friends, colleagues, neighbors. Wouldn’t it be smart to include these influencers in your campaign to create some buzz? This works both ways. Once you land a heavy hitter who wields a lot of clout, he will likewise influence those close to him. You need to penetrate your prospect’s inner circle and get the message out to his group of influentials.

Targeting the working rich directly at both home and the office, via postal, email, digital display, mobile marketing and through their connections is a game plan that gives you the best chance to win the elusive C-Level executive as a new customer.

I hope I’ve kept your attention long enough to deliver this timely, succinct, actionable insight on marketing consumer brands to high-level execs!

Wealth Window Blog

Subscribe to Our Blog

Recent Posts

Archives

Categories