Blogs.Position2.com, 19 January 2012, Author: Team Position2
A Brief Recap: In the first part of Positions Online Marketing for Luxury Brands series, we discussed two important aspects of online marketing that prestige brands should focus on; a) social media as a crucial source of information for affluent customers looking for product reviews and information and b) the need to better engage with customers online and what the owners of high-end brands can do to make this possible. Considering how much difference content can make to luxury brands sales charts and revenues, we decided to focus on the content aspect in part two. Also featured is a section on contests, deals and offers, where we explore the idea of luxury brands marketing products in the form of special offers via social media sites.
Approaching Social Media Content
While marketers of luxury brands religiously follow the four Ps of marketing (Product, Place, Price and Promotion), there is one crucial C that is sometimes relegated to the background; content. One of the first rules of approaching content that luxury brands need to keep in mind is that they cannot follow the one-size-fits-all approach. The content type for a brand, aimed at the general population, for instance, will be completely different from that for a prestige brands social media site or webpage.
Retaining the Exclusivity: Contrary to the myth that digital marketing risks luxury brands exclusive status, online marketing can be an opportunity to actually enhance a brands exclusivity. Prestige brands can make the affluent customer feel special by smartly tweaking their webpage content. Take a look at the Lexus Drivers exclusive online community webpage. The site allows owners to manage information about their car and provides lifestyle content on their Lexus Magazine, which is available only to Lexus owners. While catering to the needs of their niche audience, Lexus simultaneously provides information about the company and its products on their Facebook page; which means the affluent customer is happy, while the general population has nothing to complain about.
The Power of Storytelling: Although social media pages and websites can be rich sources of information, nothing draws as much traffic to a brands site as stories do. Camouflaging unique lifestyle content in the guise of a story not only makes it an interesting read, but also encourages readers to share this content with others, thereby increasing traffic and visibility. The Chanel No.5 Night Train video was a huge hit and generated considerable buzz online because of its impressive storytelling.
Sharing Your Brands History: When it comes to prestige brands, the legacy and history associated with the brand increases the sense of being special among customers of luxury products. In addition to featuring content that includes the necessary details like product information, services provided etc, the affluent audience expects to know more about the companys rich history. This type of information is not only educational in nature, but also provides audiences with a story about what makes a brand special, which in turn, influences their purchasing decisions.
The Impact of Contests, Discounts and Deals on Exclusivity
Reasons Users Engage with Brands Using Social MediaWhere some luxury brands preferred keeping engagement to a minimum, there were others who felt that deals and offers would affect the brands exclusive status. What also tilted the argument in their favor was the fact that the affluent crowd did not mind spending those extra dollars for high-end products they desired; which meant, the prospect of winning contests and discounts did not entice them as much as it attracted the general population. This, however, is gradually changing, with makers of luxury products starting to understand that todays consumer actually looks forward to contests and deals as an exciting way to shop online. According to a November 2010 L2 Think Tank survey, affluent members of Gen Y (ages 19 to 33) cited promotions and offers as the main reason for engaging with brands via social media. The study also showed that women were more likely than men to engage with brands in general and to want to receive offers.
Creating Buzz and Increasingly Visibility: Contests are a great way to promote new products and no one knows this better than Lexus. The companys strategy to create online buzz and increase visibility during the launch of their latest hybrid model in 2010 saw Lexus allow their Facebook fans to post a statement about why they should win the one-year lease that was being offered for the model. Not only did this initiative positively impact the Lexus brand name, but also generated exponential online buzz.
Building Followers: Gucci currently boasts +5,794,000 likes on their Facebook page and has +224,000 Twitter followers. For a luxury brand, the numbers are rather good. While not going overboard with deals and contests, the luxury brands strategy to build followers and fans was subtle, but impressive. GUCCI - Facebook PageGuccis 12 days of Christmas promotion suggested 12 products that consumers could add to their shopping carts over the holiday season. On Facebook, the prestige brand allows fans access to complimentary iTunes downloads of the latest Gucci magazines.
Members Only: Members only sites like Gilt.com and RueLala.com have increased in popularity in the US over the last few years. The biggest USP of these sites is that they allow brands to retain their sense of exclusivity by limiting their sales notifications to members only. For brands looking to keep up with the competition, while protecting their niche status, these sites are a definite yes.
Conclusion
When it comes to online marketing, especially social media, it would be safe to assume that luxury brands are no longer green-behind-the-ears. Although some brands are still worried about losing their exclusive tag, the likes of Gucci and Bare Escentuals are proof enough that a smart social media marketing strategy will not only elevate their luxury statuses, but is also a great way of increasing visibility in the online space. As discussed in part one, todays prestige brands are well aware of the fact that the affluent customer is no longer restricted to the well-off, 40-something. With increased spending power and willingness to shop online, the younger demographic demands attention as the next generation consumer of luxury products. That said, for luxury brands, one of the biggest challenges is standing out in a crowded online marketing space by sporting certain distinguishing qualities that separate them from the non-luxury labels. This is something many brands have successfully overcome by creating lifestyle content and featuring information that keeps the exclusivity intact, at the same time qualifies as compelling and creative. While these signs are encouraging and lay the foundation for luxury brands to explore social media marketing with fewer inhibitions than before, there are instances where brands are still unsure about the uncontrolled nature of social media. We expect this to change over the next few years, with marketers of prestige labels drawing inspiration from the likes of Lexus and Chanel who are now mavens in the online marketing space. Meanwhile, as far as the question of deals and discounts is concerned, luxury brands are wary of going overboard. While the older demographic does not consider deals as one of the reasons to shop via social media sites, this is changing with younger, affluent shoppers entering the e-commerce space.
Despite boarding the online marketing bandwagon a little later than they should have, luxury brands are rapidly integrating social media marketing with their traditional marketing strategies. Going by the success stories and the openness with which some brands are embracing social media, we expect the love-hate relationship between online marketing and high-end brands to change into a strong, inseparable bond.