How do you Target a Luxury Consumer? (2024)

FAQs

How do you target elite customers? ›

Define Your Target Audience

Use Google Analytics and other analytics through social media platforms and your website to gauge who's visiting. Track in-store customer data too if you have a brick-and-mortar store. Augment that with market research and an overview of the average customer of your high-end competitors.

Demographic segmentation is based on objective characteristics of consumers, such as age, gender, income, education, and occupation. These factors can influence the purchasing power, needs, and tastes of luxury consumers.

Luxury segment consumers are selective and seek exceptional experiences and exclusive products. These customers value quality over quantity, seek exclusivity, and are willing to pay more for it.

So, one way to reach them is by appealing to their desire for status. This could mean using prestigious branding or targeting them with exclusive offers. Another way to reach wealthy consumers is by making your marketing personal. This could involve tailoring your messaging to their specific interests or needs.

“Today's luxury consumers are seeking more than just tangible products; they are looking for an experience,” Valk explains. “Luxury audiences value experiences like exclusive events, personalized services, and immersive brand interactions as much as, if not more than, the products themselves.

For instance, luxury brands often target affluent consumers who are over the age of 35 and have a high income and education level. This demographic is seen as an ideal target market as they are likely to have more disposable income and are willing to pay a premium price for high-quality, exclusive products.

Luxury consumers have high expectations and standards when it comes to the products and services they purchase. Offer quality and exclusivity and express how your luxury product can enrich lives with experiences, emotions, stories, and meanings that resonate with your customer persona and who they want to be.

Luxury consumers seek exclusive experiences, exceptional quality, and a sense of status. Understanding luxury consumer behaviour helps tailor marketing efforts to their values, aspirations, and desires.

What are the four E's of luxury marketing? ›

That's why Danziger came up with the 4Es of marketing: experiences, everyplace, exchange and evangelism. In the new experiential economy, consumers—particularly millennials—are spending their money on experiences instead of tangible goods.

Trust is a key consumer motivation for luxury brands

Though luxury manifests differently with different types of consumers, it is built on a shared understanding and trust that paying a premium will result in something special.

Secondly, luxury consumers want quality. Consumers understand that you have to charge more for quality goods, but they don't want brands to cut corners in order to save a buck. They are savvy and can tell when something is cheaply made, and it really ruins their experience.

These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury cars, watches, jewelry, designer clothing, yachts, private jets, corporate helicopters as well as large residences, urban mansions, and country houses.

Luxury consumers have high expectations and standards when it comes to the products and services they purchase. Offer quality and exclusivity and express how your luxury product can enrich lives with experiences, emotions, stories, and meanings that resonate with your customer persona and who they want to be.

Global Luxury Watch Market Restraint

Nevertheless, because they only target the wealthy segment of the population, lower and middle-class income earners are being repealed by their pricing strategy. This is one factor that acts as a restraining factor that hinders the market growth.