MediaPost | Engage:Affluent

5 New Imperatives For Luxury Brands

Wed, 15 May 2013 12:41:00 -0400

Despite ongoing economic concerns, the last few years have largely been good for the financial performance of luxury brands. And the good times will probably continue.

Luxury Is In The Words Of The Beholder

Wed, 08 May 2013 09:26:02 -0400

Recently, I had the pleasure of presenting the results of our latest monthly pulse to luxury and affluent marketers in Chicago and New York. This ongoing, insights-oriented survey differs from others as it focuses on consumers' thinking about their lives and the economy, as well as their plans for the future. This, in turn, provides marketers with the context they need for the decisions to be made, delving into consumers' optimism about the economy, financial goals, worries, etc., plus probing issues of current interest in both the affluent/luxury marketplaces and the mass markets. In that context, I was frequently asked to find out: What do the words "luxury" and "luxurious" really mean to consumers in their own words?

When Money Is No Object, How Do You Entice Users To Take Action?

Wed, 01 May 2013 12:22:03 -0400

Offering incentives has proven be an effective motivator for attracting new customers and activating existing audiences who may be less than engaged. According to a study by Colloquy, participation in rewards and loyalty programs has risen by 19% since 2007. While many marketers are already on board with the idea that reward programs can influence behavior, incentive programs are often under-utilized when marketing to a more affluent consumer base.

In These Households, Women Are Calling the Shots

Wed, 24 Apr 2013 10:55:03 -0400

The Luxury Institute released a report this week that identifies women not only as household CEOs, but also as contributing significantly to the household income. In fact, 41% of women included in the survey were the family breadwinners, contributing more than 50% of the household income. Despite the fact that these educated women are earning six-figure salaries, their top priority, per the survey, is still family.

Luxe In Flux: Tracking The Evolution Of Luxury

Wed, 17 Apr 2013 10:05:03 -0400

In Selling to the New Elite, I devoted a chapter to the history of luxury, and argued that luxury is essentially a cultural universal, having existed in every culture and time period, but manifesting itself differently across time and place. Even in cultures not known for materialism, there are special objects and experiences that are highly valued precisely because they are special. In every culture there are objects that are beautiful, artistic, exquisite and sublime; there are experiences which are rare and memorable. In both cases, one who appreciates the luxury is emotionally uplifted by the pride and passion inherent in something transcending mere utilitarian function.

Smartphones Are From Mars, Tablets Are From Venus

Wed, 10 Apr 2013 15:32:02 -0400

The common assumption is that mobile refers to both smartphones and tablets, thus insinuating that each device is similar to the other. There are similarities, of course, as both devices are portable, personally customized, web/app connected and touch-screen enabled. Additionally, both devices have significant traction amongst Affluent audiences - as 67% of Affluents own smartphones (Nielsen) and 47% own tablets (Pew).

Incentivized Advertising: A Given For Some, Underused By The Rest

Wed, 03 Apr 2013 13:20:02 -0400

The reasons for brands to engage with affluent consumers are simple enough. Affluents have larger disposable incomes and can purchase more goods and services. If their peers are other affluents, positive referrals from happy consumers can produce a powerful and profitable ripple effect. If they're prominent and respected in their offline lives, their influence can spread in their online networks to all sorts of consumers.

Is Cause Marketing To This Group Worth The Effort?

Wed, 27 Mar 2013 10:00:05 -0400

Do you find yourself questioning the time and effort that goes into cause marketing? Has it become a pain rather than an uplifting venture? Do you wonder if it's making a difference with consumers?

People Take Vacations; Media Use Does Not

Wed, 20 Mar 2013 06:10:42 -0400

Last week, I had the pleasure of interviewing CNBC's Robert Frank and Cond Nast Research Director Jennifer Sylvester as part of our Point-of-View Forum on Affluent travel. We had a wide-ranging discussion, and shared new data about Affluents' favorite vacations ever, as well as the destinations they would most like to visit (Hawaii topped the list, followed closely by Europe and Alaska). Some of the data I found most compelling underscored a crucial point: Affluents take vacations, but their media use does not.

A Match Made In Marketing Heaven

Wed, 06 Mar 2013 06:13:08 -0500

As the increase in tablet adoption makes clear, tablets today are no longer "novelty gadgets," but rather tier one mobile devices, comprising one-third of all mobile content consumption. One of the most striking discoveries is the effectiveness of tablet marketing in reaching affluent consumers. We also see the inherently engaging tablet platform as particularly well suited for evoking lifestyle benefits - staple tools for luxury brand marketers.

In Advertising, Stick To The Tried And True

Thu, 28 Feb 2013 13:37:51 -0500

If you look at the industry headlines these days, the majority of the stories are still focused on social and mobile - particularly for luxury brands. Experts agree that marketers should be banking on these new channels, which open up a world of opportunity with respect to data, targeting and round-the-clock access. I recommend an investment here, but I also recommend not putting all your eggs into the social/mobile basket just yet. While both are promising and will increasingly demand more budget, targeted display is still your "tried and true" and should still take the lion's share of your advertising dollars for the time being: Here's why:

The Importance Of This Market

Wed, 20 Feb 2013 08:16:57 -0500

This week, we're releasing our latest analyses of two widely cited government surveys: the 2010 Survey of Consumer Finances (a triennial study from the Federal Reserve Board), and the 2011 Consumer Expenditures Survey (an annual study from the Bureau of Labor Statistics). Our analyses of the raw unpublished data from these surveys paint a definitive portrait of wealth and spending concentration in America.

Treat Them As You Do Your Kids

Fri, 15 Feb 2013 15:37:01 -0500

We New Englanders recently endured our largest blizzard in recent memory; providing much of the region the rare luxury of spending extended time at home with family. As Dad to both a toddler and infant boy, this extended time with the kids provided many moments of euphoria, melt-downs, exuberance and tantrums (thrown more by yours truly than I'm proud to admit.)

6 Ways to Keep From Alienating Traveling Grandparents

Fri, 08 Feb 2013 15:51:03 -0500

This time of year, grandparents start thinking about Spring Break and the kind of travel they might do with their grandchildren. It's a great time to travel-everyone's ready for a break in routine and traveling in nearly any geographical direction offers many unique opportunities.

Affluents Seek Deals, Too, But Can Be Advocates For Brands

Wed, 06 Feb 2013 06:17:29 -0500

Let's first dispel the myth that affluent consumers do not shop for deals. Research affirms the contrary. According to Nielsen Research, affluent households dominate coupon use. In 2009, for the first time, households with incomes above $100,000 were the primary drivers of the record coupon growth seen in that year. The economic downturn has since kept this trend alive. More than one-third of visitors to the Groupon and Living Social deal sites are college educated.

Targeting The Consumer: Comparing Tablet to Desktop Paid Search Performance

Wed, 30 Jan 2013 06:59:14 -0500

In my world, we think a lot about reaching affluent audiences with targeted rich media. Of course, rich media isn't the only way to reach luxury buyers - search engine marketing is also incredibly effective and complimentary to the rich media experience. Since search is extending well beyond the desktop, brands now have to think about targeting audiences by device as well as by keyword phrase. To talk more about this, I've invited my friends at Morpheus Media, who've just completed a study on tablet search behavior across five luxury brands, to join me here. Basheer Bergus, Paid Search Strategist at Morpheus, shares what they've learned:

Couch-surfing Sites Appeal Beyond Backpackers

Fri, 25 Jan 2013 05:10:32 -0500

In a review of luxury travel trends, I cited unique experiences, exotic and previously forbidden locales, and healthy, activity-based vacations among the new year's fads-all tied together by the social-media savvy. Thank you, Travel + Leisure, Travel Weekly, the International Luxury Travel Market, and others, for backing me up. A new crop of travel sites connects some of these trends.

New Year's Resolutions (And The Deeper Meaning Behind Them)

Wed, 16 Jan 2013 09:12:27 -0500

I've always loved the start of a new year. New Year's Eve, as holidays go, is characteristically more about fun and less about family drama, and New Year's Day is typically a day of relaxed recovery. I've even come to enjoy the promise and potential that is so carefully packaged in the "New Year, New You" promotions that now seem standard fare for every category.

Younger People, Social Media Shape Travel Trends for 2013

Wed, 26 Dec 2012 11:42:03 -0500

When Virgin Galactic launched in 2004, I think we all knew that the future of luxury travel would look very different than we ever could have anticipated.

Seeking Simplification (In Theory, At Least)

Wed, 19 Dec 2012 05:45:00 -0500

In each of the last 36 years, we have begun the analysis of our survey data with a search for trends. What's up? What's down? What has changed in Affluent lives, spending patterns, and media habits?

5 Tips Luxury Marketers Can Learn From Showtime's 'Homeland'

Wed, 12 Dec 2012 12:45:52 -0500

"Homeland," Showtime's 2012 Emmy-winning series, is a story of heroic efforts by a team of dedicated intelligence professionals to promote the interests of the United States and safeguard it against threats in an ever-changing, turbulent world. In a larger sense, it's very similar to the efforts of luxury marketers to gain mindshare of affluents. The storyline has a premier brand, the United States, whose influence is being threatened. Like luxury marketers, the team has to promote the brand while also protecting it from powerful, opposing forces in the marketplace who desire to diminish its influence.

How The Best Luxury Brands Embrace The Social Revolution

Wed, 05 Dec 2012 14:59:03 -0500

Last time I was in New York, I found myself ducking into Saks Fifth Avenue to avoid the sirens from the President's motorcade. You have to appreciate the full retail experience of an upscale store like Saks. What really struck me on this particular visit were not the couture products or the latest high-ticket items that would require my selling a limb to purchase, but the habits of my fellow shoppers -- in particular, the number of mobile cameras being used to take pictures in every corner of the story really stood out. If I ventured a guess, I'd bet a majority of those photos were shared with friends and family for shopping advice or were being posted to Pinterest, Facebook, Twitter, or Instagram.

Sugar Plums Or Lumps of Coal? What To Make Of The Holiday Forecasts

Wed, 28 Nov 2012 06:52:00 -0500

Reading the outlook reports for Holiday 2012 can really make your head spin. It's hard for luxury retailers to know if they should be decking the halls or hiding behind the tree. One report declares that affluents will be buying meaningful gifts for loved ones - and even better gifts for themselves. Another predicts a sea of consumable gifts and gift cards. A third predicts that, due to an Obama victory, the wealthy will be keeping it lean this year, since they believe the President will be hungrily eyeing their wallets.

Money On Their Minds: A Look At Investments (Part 2)

Wed, 21 Nov 2012 05:17:48 -0500

Last month, we began exploring the roles of money and financial services in the lives of Affluent Americans. This month, we dig deeper on Affluents (defined here as $100K+ annual household income) and their money. But first, a quick review of the key findings from last month's initial look at Affluents and financial services...

Discerning Tastes Seek Digital Details

Wed, 14 Nov 2012 12:30:36 -0500

Savvy affluent consumers have always had discerning taste. The trends we see in virtually all luxury segments indicate that consumers are being more focused and conscientious about their luxury purchases. No doubt unsettling times play a major role, and I believe a larger macro force is at play: limitless choices are causing consumers to think more diligently about where they focus their luxury dollars and the personalized choices they make.

Because You're Worth It: Marketing To An Audience That Treats Itself

Thu, 01 Nov 2012 07:01:15 -0400

While most Americans will be celebrating modestly this holiday season, affluent customers, specifically the top 10% of earners, are expected to spend over 20% more than last year. According to a recent study by Harrison Group and American Express, 39% of the top 1% are planning to spend big on gifts this year, although perhaps not in the way you'd expect.

Regain Their Loyalty: The Art Of Reactivating Dormant Luxury Buyers

Wed, 24 Oct 2012 06:55:51 -0400

In the era of Groupon Reserve, how can luxury brands hope to hold their customers? If everyone is looking for a bargain, can stores like Barneys and Neiman Marcus even stay in business, much less maintain the loyalty of their pre-recession customers?

Money On Their Minds: A Look At Investments

Wed, 17 Oct 2012 07:32:10 -0400

Defining Affluents as the 59 million U.S. adults living in households with $100,000 or more in annual household income (HHI), we find they average $192K in HHI, and their average of $500K in liquid assets is spread across a variety of accounts. Essentially, all have a banking (checking/savings) account, and nearly as many (87%) have a retirement account, including 63% with a 401K. They have a variety of insurance accounts as well, with personal insurance being the second-largest category of Affluent expenditures (behind automotive).

Using Email To Sell High-Ticket Items

Wed, 10 Oct 2012 12:32:55 -0400

Much has been written about today's affluent consumers being device-crazy. For example, according to a recent "Engage:Affluent" column by Stephen Krauss of Ipsos MediaCT, half of affluents now own smartphones and a quarter own tablets, and these numbers have been increasingly rapidly.

Made For China

Wed, 03 Oct 2012 06:10:11 -0400

Despite the weakened Chinese economy, the appetite for luxury goods remains strong. What is interesting is that the Chinese look to the U.S. as a credible and desirable source of luxury goods. No longer does the U.S. sit a rung below France and Italy; it now sits side by side on the dais of luxury brands.