Reaching the rich.
Ah, the poor rich. Much maligned in recent days, judging from the headlines. And yet, there is no denying a few economic truisms: The rich hire. Build. Invent. Invest. Create wealth for others. Consume. The rich…buy. And, if we may quote Ms. Martha Stewart, a wealthy entrepreneur in her own right — that’s a “good thing.”
Those who have products or services to sell enjoy appealing to those whose incomes soar northward. After all, it helps make them rich. So when it comes to getting into the heads — and let’s be honest here — the pockets of the affluent, what media avenues are winning their attention? If you think “social media”, you think correctly. Let’s take a look:
Face facts: Research and consulting firm Spectrem Group unearthed this factoid: Among households with a $100,000 to $999,999 net worth, Facebook usage in 2010 went from 29% to 55%. “For luxury firms who advertise with Facebook or simply post news and offers on their Facebook profile, there is clearly rich potential for creating closer relationships with customers,” says Milton Pedraza, CEO of the Luxury Institute. “Closer relationships lead inevitably to higher sales.”
LinkedIn. For the mass affluent, usage has more than doubled since last year, from 10% to 22%. Can you say “potential marketing juggernaut”?
Blogs, etc. According to a Fidelity Investments survey of millionaires, 66% of respondents would like to use social media, email or texts to communicate with their financial advisors. 22% said they’d read a blog from a trusted advisor. Note to advisors: Get on the SoMe bandwagon. Or prepare to be stamped “Obsolete.”
Obviously, if you’re intent on cultivating affluent customers, there’s a wealth of choices by which to reach them. The topics raised here are just the tip.
Stay tuned. It’s a rich subject.
About Burns Entertainment & Sports Marketing:
The objective every business hopes to achieve is…more business. With over 40 years of expertise in consumer analysis, pop culture and matching celebrities with brands, we’ve helped our clients galvanize sales, share and profit. We invite you to read our success stories. And become one of them. Please visit http://burnsent.com/case-studies and/or contact CEO/COO Bob Williams at Bob.Williams@burnsent.com.
Spectrem EZine 10/4/2011
Spectrem EZine 9/29/2011
If there’s one thing I know, it’s luxury consumers. And above all else, what motivates these folks to make a purchase is the experience they get shopping, buying and owning it.
It hasn’t always been this way. Pre-recession we were in an age of conspicuous consumption — it was ALL about “bling bling”, showing off, big brand logos, and the satisfaction derived from having the best… and everybody else knowing it!
Here at Burns, we happen to work a lot with luxury brands — from Rolex to Lux and even smaller brands like Magnum Ice Cream. And as we’ve delved deeper into the luxury consumer’s psyche — how they want to engage with brands (and one another), what motivates buying decisions, and how brands can effectively engage in an online world, we’ve come to a simple conclusion –
The greater the experience, the more interested the luxury consumer becomes.
This applies to products that are inherently “experiential”, but also products that would otherwise be “ordinary”, if not for a marketing campaign or sales process that made for a truly memorable, engaging experience. Check out a few of the examples that caught our eye:
- Le Royal Monceau in Paris exemplifies a trend towards more expensive and experiential hotels, boasting its own cinema and art exhibitions. The bedrooms have their own guitars and offer free private lessons. Guests depart fully rested… with great stories to tell!
- Consumers purchasing a new Corvette ZR1 are invited to visit the General Motors Performance Build Center in Michigan and assemble their very own engines… every single time they drive that ‘Vette, you can bet they’ll have something to boast about!
- Higher income consumers are roughly 12% more likely to dine at restaurants that offer a more intimate experience with others, while 22% prefer dining options that provide unique entertainment beyond the mere “eating” experience.
- A recent study found the most important element of a luxury vacation, per consumers, is “experience and personalization”, while more traditional markers of luxury, like “letting others do things for you” or “eating the best food” fell much further down the list.
When you’re up for it, I’d love to chat further about our perspective on today’s luxury consumer, and perhaps tell you some stories about the brands we work with in this space.
Perhaps some of our findings will prove useful in your next brainstorm.