One of the biggest problems for any brand can be figuring out how-to identify their primary target audience. For a luxury brand this is the lifeline of their brand management and promise for how-to deliver luxury goods to the their best target audience consumer in the marketplace. Plus for luxury brands delivering this process is an exact hit or miss and if not defined correctly the brand will never be able to sustain. A reason way so many new emerging luxury brands die off before they reach full potential to find loyal customers and brand ambassadors.
There are several important steps that luxury brands should take to identify who their target consumer is and solutions to engage with their target audience. This by theory, which theory guides research is the key to success. So for 2015, luxury brands should start focusing in new areas to target customers.
According to new research from global marketing and crm agency Epsilon and research and consulting firm The Luxury Institute luxury brands often misidentify target consumers.
Three Things Luxury Brands Can Do
These are focus areas to improve how-to identify targeting luxury consumers.
1. Identify Demographic and Economic Profile
Luxury brands mistakenly believe their customers are typically female and on average 45-years old with a net worth over $1 million. However, 57.5% of luxury spenders are in fact male. They are likely to be of Asian and Middle-Eastern descent with a net worth over $500,000. In addition, nearly 13.8% of shoppers with a net worth over $1 million invest mostly in modern, contemporary decor and gifts as opposed to high-ticket apparel items.
photo credit Shanghai-Tang
2. Target Luxury Shoppers Using Online and Mobile Engagement
While 98% of luxury shoppers use the Internet regularly, more than 50% of the time they are researching products and comparing prices on their mobile devices.
Neiman Marcus Partnered with Slyce to introduce Single-tap Visual Search technology revolutionizing luxury shopping with “Snap. Find.Shop”.
photo credit Neiman Marcus
3. Enhance Personalization and VIP Experiences
Improving online and retail luxury shopping experiences will assist with connecting with desired target audiences.
CharmPosh Magazine Mini for iPhone, iPad, and iPod is the go to app for savvy chic parents. A personalized digital magazine app network featuring the best in kids fashion, kids health, family vacation packages, cool baby clothes, and so much more. Luxury and lifestyle brands team with CharmPosh Magazine Mini to reach niche audiences.
By focusing on tailoring luxury marketing campaigns aimed at the best matched target audience, luxury brands can generate more revenue earnings faster. The ideal luxury marketing campaign should deliver a clear promise to a demographic and economic profile ready to buy the need for luxury goods.