Smart luxury companies have increased their online marketing expenditure and have partnered with agencies that are skilled in helping them reinvent their online advertising. So what are the advantages?
What are the reasons why luxury Brands are investing in Digital
The year 2023 is when eCommerce is expected by 2023 to make up 20.8 percent of sales across the globe. It’s not an impressive figure, but it is one that will surely increase with 81% of customers choosing to do their research before buying in stores. In order to succeed and maintain their market share, high-end luxury brands that are moving fast are changing to control their image of exclusivity in a digital world.
This isn’t a new phenomenon also – back to 2014 when McKinsey released a study which claimed that digital marketing activities have a direct impact on at about 45% of all luxury sales. In contrast to ATL campaigns that require ongoing re-investment to increase the value of customers digital marketing activities have a higher cost-per-year value for customers, and are able to reduce cost. They are quantifiably measurable investments in the long-term relationship with customers since they can target qualified customers.
Below are three key points of guidance luxury brands must consider in order to establish a successful online marketing plan.
Storytelling and Heritage
Heritage – whether it is in the sense of tradition or through a through the process of creating bespoke products is expected when clients are paying a premium price. The ability to communicate the meaning behind the products and revealing the core qualities that define a luxurious brand is the key to the success of quality.
Digital marketing offers new possibilities for luxury goods and services to tell their stories through a more immersive, interactive and captivating manner. Brands are free to change and develop unique experiences for their customers that establish their brand’s identity.
The seamless integration of the simple narrative and technology provides luxury brands the ability to engage with their customers through every touch in price and location.
Aspiration
Photography and creative direction are probably one of the top methods to evoke the aspirational feelings that are associated to driving a luxurious automobile, wearing designer clothes or being a part of something special.
With this in mind visual social media platforms like Pinterest and Instagram provide a fantastic possibility for luxurious brands boost awareness of their brands and to promote their products with minimal investment.
User Experience
As the amount of digitally-enabled purchases by modern high-end consumers grows and so do their expectations of digital technology.
In general, websites for luxury brands are attractive, but there’s an unspoken need for outstanding user experience and the best functionality.
According to eMarketer According to eMarketer the most discerning customers go through an item seven to eight times before making their purchase. This is why it’s essential that the online store operates as seamlessly as a store experience.
What’s next to Luxury Brands?
The near-term future is where I am getting the impression that discussing offline and online marketing will become outdated. They are both integral to one another and should be used in conjunction.
For the most innovative and digitally-savvy companies are already using a digital marketing agency for luxury brands. In the rest of the market there’s never a better time than now.
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