Digital Marketing in the luxury industry has never been as important as it is today.
Being relevant and informative to your exclusive target group are central to digital marketing strategies aimed at HNWIs.
Effective communication and visibility are the keys to any effective marketing strategy, and digital marketing in the luxury industry has never been as important as it is today. Studies have shown that over 98% of High Net Worth individuals (HNWIs) spend around 3 hours or more online every day. HNWIs are even more likely than other economic classes to work remotely or online and this demographic is also a comparatively early adopter of new technologies and digital services. In all likelihood, HNWIs are probably more skilled and experienced at using the internet than the average consumer. Successfully appealing to their unique wants and desires therefore require equally unique online marketing strategies.
Never forget that if you’re in this market, you are targeting a demographic that represents, at most, 1% of the global population. The products you are selling or the services you are delivering are simply too expensive for 99% of the people on the planet, who will normally simply dismiss it because of the price – and without giving it even a second thought. In other words, to almost everyone, your product or service might incite fantasies or interesting conversations, but never any sales or deals.
Communicating your brand, product or opportunity in the type of language that speaks to such an exclusive group of people, can naturally be challenging, but is absolutely necessary if you want any success on the selling end of the luxury industry. Take Gucci, for example. In 2015 it was headed by a new CEO and a new Creative Director, Marco Bizzarri and Alessandro Michele. By 2016, the pair were credited with delivering Gucci’s parent company Kering its strongest year-on-year revenue increase since 2012, and this was greatly due to the brand’s effective engagement with the right online audience.
Effective marketing strategies should be able to target HNWIs online whether they are spending their time on the net working or relaxing. Social media is one of the best platforms to get a humanising message across in terms of introducing the both people as well as the motivations behind a brand, which can really help your affluent target audience connect, since this audience are – more often than other demographics – interested in a product’s origins, background and process of production. Facebook and Instagram are as important in this regard as it would have been with any group, but LinkedIn is also especially important when it comes to marketing the HNWIs.
But while social media campaigns are a vital component of digital marketing, it isn’t enough on its own. In fact, publishing a piece in a reputable journal, magazine or even blog that convey the right on-brand messages, can be even more effective. Combine a marketing and PR content strategy that targets select publication platforms. Posting not just about your company, but about other related topics that your audience are typically interested in is a great way to capture attention. For attracting HNWIs this could include things like philanthropy, wealth management, or luxury tourism.
Whether using social media or other digital avenues, you should not be just promoting your product or service – it is important to use these avenues for building relationships with your target audience. In fact, most of your online marketing content should therefore be aimed at this goal.
In this regard PR agencies play a vital role today’s digital media scene. The right tools, strategies, and tactics require the kind of innovation that has evolved far beyond the traditional role of media relations. Knowing that HNWIs are susceptible to economic risk, PR personnel tend to spend a lot of time researching the (potential) impact of global events on (potential) customers. PR research can hep you better understand the needs, trends and lifestyle of the High Net Worth market – vital information needed to effectively relate to your audience. And without building the right kind of relationships, you can forget about effectively conveying the real benefits of your product or service to this demographic group and get those deals done.
Other important digital marketing strategies for engaging HNWIs include search engine optimization or geo-targeting cities and regions where the wealthiest people in the world live or spend time: make your organic keywords more location and season specific. You can also already target the HNWIs of the future, i.e. the children of the right potential clients. Always keep in mind that the methods for marketing to HNWIs are constantly changing and developing, and as so is keeping up to ensure that your brand stay relevant and desired by the world’s wealthiest.
Being relevant and informative to your exclusive target group are central to digital marketing strategies aimed at HNWIs. Grabbing their attention by efficiently conveying the right information at the right time and in a visible and appealing manner online is an inescapable part of the route to success in the luxury industry.
Paul Russell is co-founder of Luxury Academy London, a multi-national training company with offices in London, Mumbai and Visakhapatnam. Luxury Academy London specialise exclusively in the luxury industry and deliver training in leadership, communication and business etiquette training for companies and private clients across the globe.
Prior to founding Luxury Academy London, Paul worked in senior leadership roles within luxury hospitality. A dynamic trainer and seminar leader, Paul has designed and taught courses, workshops and seminars worldwide on a wide variety of soft skills.