The past decade was the single most powerful and innovative time in the history of technology. Every industry is being disrupted by technology and everything is submitted to the social revolution. In order to be successful, luxury companies must be ready to sell, service and engage with their customers any time, anywhere and on any device. Customers demand more depth, emotions & personality from companies. As a result, it seems every brand is trying to be a human brand, but few get it right. While creating digital brand awareness and adapting to consumers’ preferences continues to be the major goal of marketing campaigns for luxury brandy, retailers have also realized that the key to success is to offer the consistent brand experience at the omnichannel level.
According to WBR’s luxury digital marketing report, which provides survey-based insights into how luxury advertisers approached digital marketing over the last year, luxury brands are investing in digital and e-commerce to keep up with changing consumer behavior. The report reveals that:
92% of luxury retail respondents increased their digital marketing investment in 2014. Pure online sales of luxury products has doubled over the last year and luxury e-commerce is growing faster than the retail industry at large. Brands are mainly investing in digital advertising, personalization and targeting of their marketing messages. Survey respondents mentioned 2 primary goals: brand awareness (77%) and driving conversions (60%).
With luxury consumers doing more product research online and leveraging mobile search, search engine marketing has become a primary concern for luxury brands. Digital advertising is also extremely important, and luxury brands are turning to third-party providers to help navigate the nuances of modern digital advertising. 61% of respondents used third-party vendors for display advertising and 31% used vendors for multichannel initiatives.
Luxury brands are also leveraging unique content and social media to meet and influence affluent consumers in a digital space. While print advertising and event marketing still remain important in luxury retail, digital assets like e-commerce websites, content micro-sites, making-off/backstage videos, social media accounts, digital advertisements, and web publications have become crucial tools for brands to tell their stories. Most luxury brands are leveraging these digital spaces to build on their narrative, combining in-house and third-party content.
From a brand-building perspective, digital marketing has created a rich new medium through which luxury retailers can tell their stories. While this medium can be extremely powerful, creating it requires a wide knowledge and written content, which can be a major investment and obstacle. In the WBR's study, 65% of respondents are using some combination of in-house and third-party resources, indicating that it is common practice for retailers to involve external companies to develop content.
Online-only luxury sales will continue to grow, and at great pace. Brands must be equipped with the right tools to win over digital customers, create seamless shopping experiences, and ensure great customer service after the purchase. Is your luxury brand ready for this online revolution?