Unlike other areas of marketing where reach and quantity are the primary KPIs, quality and loyalty matter the most to luxury brands. How does this affect luxury marketing?
1. It’s not all about money. Luxury experiences are not about price tags – you should not see prices mentioned in promotions of luxury products. It’s about offering clients moments that money can’t buy, timeless and aspirational. We have created these “WOW” moments in many ways, like bringing a chef out of the kitchen and having him interact with guests in an intimate boutique or creating an original acapella Broadway show for a large scale global conference. People buying luxury goods can own many coveted products: but it’s the experience of the luxury dream, often communicated through a visual and sensory experience that sets them apart.
2. It’s not about product advertising. Unlike the immediacy of fashion, the pace of luxury is more long term and rooted in a consistent future vision not often structured through seasonal launches and schedules. Rather than selling products and promoting goods, luxury does not aim to increase product demand. It strives to create a larger brand universe and ethos that is timeless.
3. It’s about reach. Regardless of how much millennials are spending on luxury products, they are changing the way luxury is defined. Millennials value experiences over products, and their desire to share experiences via social has changed how we think about events. We now produce events through the lens of the perfect Instagram photo, emphasizing engagement and creating visual conversations that are instant and shareable. Here luxury differentiates itself from the quality of its image over the recognition of it.
Luxury has evolved through generations, and so has luxury marketing. To keep abreast of the trends, you need to dismantle the myths and begin to see the sector as more encompassing of experiences, different verticals, and social media.