With the number of luxury consumers projected to reach 440 million by 2020, small businesses targeting these big spenders need to stay current on the best ways to reach and appeal to this choosy market. Whether you’re selling products or services, here are six things to remember when selling to luxury consumers:
- Don’t use text messaging. According to the Luxury Institute, only 17 percent of U.S. affluent Internet users sign up to receive texts from luxury brands.
- Emphasize quality. Not surprisingly, the majority of the luxury consumers surveyed by IBISWorld say, to them luxury is based more on intrinsic values, such as quality, exclusivity and craftsmanship, than on other factors like brand visibility or how “cool” a brand is believed to be.
- The luxury market for men is growing. In addition to luxury accessories such as jewelry and watches driving growth in this category, luxury men’s bags and menswear are showing surprising momentum.
- Think age, not just income. Affluent Millennials aren’t going to respond to the same type of marketing as affluent Baby Boomers. Understand each demographic group’s needs and desires, and craft your marketing message accordingly.
- A sale is a sale. Affluent customers still like a bargain, no matter how much money they have. If you can discount or create a scaled-down version of a luxury item or service, you have a better chance of convincing your customer to buy.
- Luxury is more than a status symbol. Studies show younger affluent consumers are turning away from brands that primarily are used as status symbols. They want brands that reward them with pride of ownership and send a message that they are smart shoppers.