Best Practices for Ecommerce Luxury Product Marketing Campaigns

Nearly 100% of all wealthy consumers own at least one mobile device (as opposed to 60% of the total population), and they all use that device to shop. According to a study by Technavio, online luxury sales totaled $21.4 billion in 2014 and are projected to reach $41.8 billion in 2019, an annual growth rate of 14.3%.

So, the sales are there to be had; how do you get your share? Wealthy luxury shoppers do need to be treated a bit differently than the average shopper, so today I would like to talk about best practices for eCommerce luxury product marketing.

Just Like Everyone Else, Luxury Shoppers See Display Ads

But those display ads shouldn’t be the ones everyone else sees. Luxury shoppers dislike advertising, so how do luxury brands advertise? With ads that feel personal. Make sure to use every bit of demographic and psychographic info you have on them to craft advertising that seems personalized.

Online, you can’t give these shoppers the fawning experience they receive when they enter a luxe store, but there are ways luxury brands in eCommerce can try to simulate the feeling. One is to present them with deals that seem exclusive, like limited edition deals or first-looks.

A good example of “simulating the feeling” is Burberry’s luxury advertising campaigns, which feature some of the best luxury ads. Burberry knows exactly who their customers are, and how and when to target them. They constantly think about how to translate the emotion of what we experience in the real world into the digital space, even if that’s just the feeling you get when you pull on your trench coat on a rainy morning.

For more luxury brand ad campaign ideas, check out our eBook on 16 Creative Display Ad Ideas for eCommerce Marketers.

Luxury Email Marketing

With email marketing campaigns, the approach is similar. Segment your lists and personalize your messaging as finely as you can, to try to recreate the luxe experience. According to MailChimp, segmented lists improve email performance, boosting open rate by 14% and click rate by 15%.

Segmenting is particularly important with luxury customers because sending a generic message achieves the exact opposite of what you’re trying to accomplish. Make them feel special by targeting them with products and offers that your data tells you they’re actually or likely interested in. It’s more work, but the AOV’s are higher. One way to cut down on the work is by using custom workflows. Check out these workflows that can help you win in the luxury space.

For some very good examples from the best luxury websites of emails that can work for you in the luxury world, check out this Pinterest board. Many of them use celebrities and clear images to showcase their products. Most of the calls-to-action are clearly visible and don’t skimp on their own branding.

Nothing is More Personal than Social Media

Luxury brands were slow to adopt social media, thinking that having their messaging juxtaposed with dancing cat videos and photos of the Kardashians would tarnish them. But a funny thing happened on the way to Twitter, Facebook, et al: Social media turned out to be the perfect place for the personalized interaction that luxe shoppers demand. Luxury marketers who were early adopters found that customer engagement soared, and sales followed.

The leaders in the space now use social media to create the exclusive experience by streaming fashion shows, posting photos of celebrities wearing their items, and so forth. Even those brands which are reluctant to share everything on social media use it as a channel to announce the launch of more traditional marketing campaigns. And, of course, social media is also a great way to retarget your best customers with exclusive deals.

Once again, for a good example of a luxury brand creating a personalized experience, this time via social media, we look to Burberry. They are considered one of the most innovative luxury brands in social media, always bringing customers closer to their brand while providing a personalized experience. Earlier this year, they became the first luxury brand to run a Snapchat Discover channel native ad. The ad ran on Discover for 24 hours, promoting men’s fragrances and grooming products.

Nothing Rewards Loyalty Like Loyalty

Once wealthy shoppers become attached to a luxury brand, they usually adhere loyally to it. In return you should be loyal to them. One way to do that is by creating personalized luxury brand loyalty programs. Create a tiered luxury rewards program that rewards them based on the amount they purchase (Gold, Silver, Bronze). The more they spend, the better the rewards. Provide gold reward customers with access to “invite-only” events for first-looks at new products.

These luxury brand rewards programs are important because, of course, they lead to repeat shopping, but they also lead to better customer data, better understanding of your campaign efficiency, generation of valuable user-generated content, customer retention, and promotion of your best customers into your brand ambassadors. Fashion your luxury retail loyalty programs around what your customers love.

Loyalty programs work in the luxury space, and they do so by eschewing discounts in favor of creating prestige, tiered benefits, exclusive offers, and personalization. For more insights on luxury shopping behavior, download our eBook on experiential shoppers.

Retargeting Works

Retargeting works: Retargeted shoppers are 70% more likely to convert. Again, in the luxury sector, you have to be more precise and personalized. Make sure you segment your customers so you have different lists for different campaigns. If you do so, you’ll reap the benefits of better customer retention, awareness, and loyalty. It is also a great way to have loyal customers share what you share on social media.

According to a recent survey by Marin Software, nearly nine out of ten marketers employ ad retargeting, and 48% of those employing retargeting are now doing it via social media. Predictably, large social media players offer some of the best retargeting tools. Facebook offers Custom Audiences, Twitter offers Tailored Audiences, and Pinterest offers Promoted Pins. Each allows you to segment your shoppers as well as access new shoppers who are similar in profile to your current ones. This can be particularly handy in finding new luxury shoppers.

Because of its big ticket landscape, luxury products is an extremely attractive sector to focus on. It has its own characteristics that differentiate it from other sectors, but if you just remember and employ the tips I discussed today, ones that are used by the best luxury eCommerce sites, you should be on your way.

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