Archive for the ‘Affluent Women’ Category

Attracting the Affluent Through Smart Offers and Targeting

Wednesday, May 17th, 2017

alc_wealth_window_luxury_credit_card-300x198As we all know, the battle to attract affluent consumers can be intense. Naturally, having great consumer insights is key to winning. Therefore, it’s valuable to understand what strategies credit card companies are using to acquire new customers, since card marketers have a very rich understanding of consumer behavior and spending habits.

So what’s happening these days in the credit card category?

While American Express has long been a dominant player, and continues to innovate, other financial institutions are realizing the value of affluent consumers and have developed prestigious cards with rich rewards to attract them.

In November, Chase made a concerted effort to attract affluent customers using powerful data strategies and highly-lucrative acquisition offers for the launch of their flagship card: The Chase Sapphire Reserve. The card offered an unprecedented 100,000-point sign-up bonus, plus many concierge-level benefits. It worked. Within months, 900,000 people applied for the card, despite an expensive $450 annual fee. (In fact, the acquisition appears to have been too rich: Chase has since reduced the sign-up bonus to 50,000 points.)

Not to be outdone, U.S. Bank recently released their own luxury card. It features a sign-up bonus of 50,000 points as well as many of the same travel-oriented benefits that made the Chase card so successful.

American Express, the longtime luxury leader, also responded to category activity by increasing the benefits of their Platinum Card.

So… what can we learn from credit card marketers?

The bar to attract affluent customers continues to increase. Luxury brands are willing to entice consumers with ever-increasing offers and enhanced services. However, given the increased costs of these services, brands must be really smart about their data targeting and offer strategies.

Hopefully, you are deploying new, smarter data strategies – aligned with consumer wants and expectations – to build your business. As always, we at Wealth Window, are here to help you pinpoint the exact customers, exhibiting the exact behavior you need, to craft messaging that will resonate effectively. My prediction, if you use Wealth Window, success is in the cards for you.

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!

How Luxury Brands Can Win in 2017

Thursday, February 2nd, 2017

alc_wealth_window_luxury_2017Will 2017 be fabulous for luxury? We don’t know yet, but there are definitely some important trends worth considering. Let me explain…

First, on the bright side, the stock market is at record highs… consumer optimism is up… and tax cuts could be on the horizon. However, the political environment is unpredictable… there are newfound concerns about travel to the United States… and a stronger dollar could hurt the luxury category.

In the past few days, a few of our Wealth Window clients have asked me, “How can we factor these trends into our marketing plans?”

While no one can guarantee what’s going to happen to the economy overall, my years working in luxury have taught me one thing for sure: In good times or bad, certain people continue to buy luxury products and services. Granted, the makeup of these luxury consumers changes – based on stage of life, current economic/financial circumstances, and other factors – yet the ability to identify these consumers has never been more precise.

For example, we are seeing a new cohort of millennials purchasing luxury brands. These consumers don’t fall under the classic definition of wealth, yet their behavior suggests they can be the next generation of loyal, upscale customers in certain categories. For example, among these younger buyers, “experiences” – as opposed to merchandise – is doing particularly well.

Obviously, 2017 is still young. It could be a terrific year for luxury across the board, but I say hedge your bets. As we begin 2017, it makes sense to identify new segments and customized audiences most likely to buy your products as soon as possible. We can help you target highly effectively by combining discretionary spending (by amount and type of purchase) along with hobbies, interests, demographics, wealth attributes, and more.

So how can luxury brands win in 2017? To be precise, be precise.

If you’re interested in honing in on those consumers most likely to buy from you regardless of circumstances, we should talk today.

How will Donald and Melania Trump Impact Luxury Brands?

Wednesday, November 16th, 2016

Photo Courtesy of People Magazine

Photo Courtesy of People Magazine

History suggests that America’s first families often have significant influence over the purchasing behavior of Americans and people around the world. This was certainly the case when John and Jackie Kennedy brought their sophisticated and affluent style to the White House, replacing the rather conservative, 50’s era style of the Eisenhower’s. (Tuxedos anyone?) Ronald and Nancy Reagan brought Hollywood glamour to Washington—an obvious departure from the homey style of the Carters. (Oscar de la Renta and Bill Blass certainly benefitted.)

And now, Donald and Melania Trump are bringing their lifestyles of the rich and famous to the White House, and, let’s face it, the Trumps have never been shy about the media. This begs the question: How will their affluent, opulent way of life influence luxury brands and spending on upscale goods and services?

Here are some questions that are on my mind – and probably yours as well:

 

These are just a few of the questions that will be answered over the next few months, and during the Trump presidency. But one thing seems certain, the rich will get richer, and smart marketers should be thinking about how to leverage this unique opportunity.

If you think there’s a trend you can capitalize on, let’s talk. I’d love to hear your thoughts.

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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