Archive for the ‘Luxury Brands’ Category

How Well Do You Know Millennials?

Thursday, August 3rd, 2017

alc_wealth_window_millennials_300x198Much has been written about millennials. Much of it is true:

 

But millennials are not a monolith:

 

If you’re interested in understanding or reaching the right millennials for your brand, consider Wealth Window: The Richest Data on the Wealthiest People.

Today’s Millennials; Tomorrow’s Loyalists

Wednesday, June 21st, 2017

alc_wealth_window_millennials-300x198-1-300x198 copySavvy luxury marketers in search of growth are now targeting millennials – for both short-term gains and long-term relationships. While only a small percentage of millennials can be defined as “affluent,” a larger percentage purchase luxury items and experiences on a selective basis. It’s these consumers that luxury marketers want to attract today…and cultivate for tomorrow.

Beyond their transactional activity, it’s interesting to note that millennials exhibit different behavioral tendencies as well. They tend to be more innovative, entrepreneurial, and opportunistic than prior generations. From an investment perspective, millennials are 2.8X more likely to use or try hedge funds… 3.4X more likely to be serial entrepreneurs… and 5.6X more likely to have achieved significant gains by taking big risks.

Plenty has been written about millennials – and much of it suggests that they are a monolith – but the fact is, these aggregated insights are just that: aggregated insights. Luxury marketers interested in attracting millennials need to be even more precise and exacting to understand which millennials are potential prospects… how much they are likely to be worth today and tomorrow… and which ones are interested in more aggressive investment opportunities. At Wealth Window, we’ve built our audience data to do precisely that. We identify new, emerging wealth that others miss – and the millennials who are gravitating to luxury today.

The right millennial with the right circumstance is available right now. Don’t wait; find them with Wealth Window. Let’s connect.

The Future of Luxury

Thursday, May 25th, 2017

Every day, I talk to luxury marketers. Recently, we’ve been talking about luxury retail. Here’s what I’m hearing…

Retail continues to be transformed. Changing shopping patterns, emerging technologies, and evolving consumer tastes are impacting the way the affluent shop — and what they buy.

New technologies at retail are being tested and refined. Many of these technologies are data driven, including digital identification solutions, innovative mobile apps, and wardrobe assistance driven by machine learning.

Which of these technologies will be broadly adopted? We’ll have to wait and see. But it’s clear that HNW consumers have increased expectations about their interactions with luxury brands – and data is often facilitating these enhanced experiences.

At ALC, our luxury clients are now integrating important insights that go beyond basic demographics and transactional activity, to empower more personalized communications, integrated with new techniques.

In this fast-moving world, we can’t wait for tomorrow’s technology to drive our business today. But, we can leverage a wealth of data that’s available right now to deliver more relevant, personalized communications and experiences.

Finally, if you’re having success with a new technology or an innovative data strategy, please let me know. It would be a luxury to know even more about how to succeed in the future.

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.

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.

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.

Millennials are Changing the Rules of Affluent Marketing

Monday, October 31st, 2016

affluent milliennialsMillennials are a unique generation of consumers and they’re forcing marketers to forget pretty much everything they know when it comes to affluent marketing.

MediaPost’s Engage: Affluent blog recently featured an interesting post that highlighted the difficulties that many marketers are facing, as they scramble to rethink their marketing plans to adapt to the preferences of millennials.

What they’re finding is that the normal marketing strategies that have worked for generations – particularly in steadfast industries like insurance – are just no longer effective when it comes to millennials.

Now, marketers are being forced to develop new plans to reach this notoriously fickle bunch because Millennials are quickly supplanting older generations in the marketplace.

Millennials are more than willing to spend on luxury goods and services – however, what sets them apart from previous generations is that they’re much more selective when it comes to making purchase decisions and aren’t swayed by the reliable marketing tactics of old. Add to that the fact that Millennials themselves are a diverse and widely varied demographic, and you have a recipe for disruption.

The blog post points to a few interesting examples to emphasize this point. For example, affluent Millennials’ propensity towards indulgence rather than saving is causing headaches for the finance industry, while their reluctance to buy gas-powered cars is throwing a wrench (pun definitely intended) into the automotive industry’s marketing plans.

So what’s the best way to plan for those unpredictable Millennials? Well, you can start by forgetting about the one-size-fits-all approach to marketing, and instead implementing segmentation. Audience segmentation will allow you to tailor your message to better appeal to pockets of younger affluent consumers who have different wants and needs.

Since we’re on the topic of how to reach the elusive millennial audience, Wealth Window is an invaluable resource when it comes to targeting young affluent consumers. Wealth Window uses proprietary methodology that goes beyond the traditional census data, geo-targeting and demographics to track and identify affluent Millennials, providing unique access to this increasingly in-demand (and hard-to-target) audience.

What Luxury Brands Can Learn from Amazon

Monday, August 29th, 2016

If the retail industry was a beach and fashion retailers were splashing around in the surf, then Amazon would be the shark ominously circling just off shore, waiting to crash the party.

And why is that? Because Amazon appears to be making a push to enter the retail fashion sector, one of the few remaining retail industries that has yet to be disrupted by the “Amazon Effect”.

But there’s no need for fashion retailers to live in fear if they understand what underlies much of Amazon’s success and learn to adopt some of those practices.

And it’s all about the data! Data is what allows Amazon to make a personalized connection with customers and keep them engaged and loyal.

Savvy marketers with the right data at their fingertips can do exactly what Amazon does: craft a personalized and highly targeted customer experience by speaking to customers in a language that is relevant and appealing to them, at the right time and through the right channel.

As important as this is in ALL marketing strategies, it goes double for luxury consumers who pay a premium and want to know that they are valued by the brands they support. In the end, that kind of personalization pays off, because happy customers don’t just keep buying, they are also that much more likely to spread the good word about your brand.

Wealth Window data allows luxury marketers and fashion retailers to take a page out of Amazon’s playbook by bringing into focus the complete picture of each customer as an individual. We can supplement transactional data with all kinds of insightful and actionable attributes – including demographics, ethnicity, net worth, spending habits, interests and hobbies, family information, auto ownership, professions, political persuasions and more.

With the ability to understand more about the consumers they’re talking to, fashion retailers can provide the kind of inclusive and intimately personalized shopping experience that will only help to strengthen brand loyalty and increase customer retention. So take note Amazon, we’re catching on to your ways – and we’re on the offense!

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