Attracting and retaining the luxury customer is a tricky business. Most luxury customers don’t advertise that they’re out there looking for you, and once they find a luxury brand they like, it’s difficult to pry them away.
One of the key things to understand about the luxury customer is that the rules that apply to the mass market often do not apply to them.
“Deal” is a Dirty Word
To the luxury customer, “deal” is a dirty word. I’m not saying the luxury client is averse to saving money. What I am saying is that the luxury client is looking for an excellent price to quality ratio.
This person is willing to pay more if they know they’re getting the best. That means the best product, the best service, the best experience.
The luxury client will pay for a Rolex instead of a Tissot because the quality is that much better.
When you serve a luxury customer, remember, this is about what you have to offer. Are you offering the best product? Are you offering the best service? Are you offering the best of whatever this client is looking for?
Price is not the most important thing to a luxury client.
Scarcity is Key
For the luxury client, if everyone can get it, is it worth the money?
Scarcity is key. Your product or service is not something that just anyone can get. Only a select few are chosen.
I cover the importance of scarcity in sales in a previous post here, but the crux of the argument is that if the item is scarce, then it is exclusive.
By making a product or service scarce, such as, “I only have room for ten new clients,” you are creating an atmosphere of exclusivity.
Create a Tribe
Taking that exclusivity another step, the luxury client wants to know that they belong to an exclusive group.
Havas Lux Hub wrote up an interesting study about the luxury customer. While the study examined luxury retail customers, their wants and needs are similar to other luxury customers.
One of those needs is a need to belong.
Creating a tribe goes hand in hand with scarcity. Only the best people, the worthy, are allowed to access this scarce product.
When they receive your product or service, they become part of an elite group, a tribe.
VIP Service
It goes without saying that an elite group deserves elite service.
You do not send the luxury client to voicemail, and if you do, you make sure you call them back before the end of the day.
Your luxury clientele doesn’t just want but needs to feel important. They are spending thousands of dollars with you and your company. Treat them like it.
Make sure the luxury client talks to a person whenever possible. Personal connection is key to showing them that they are important.
If you do communicate via email, reply to emails as soon as possible and no later than 24 hours after receiving the email. Be responsive to their needs at all times.
Business News Daily perhaps describes it best by calling it the “grandma standard.” Every member of your team should ask themselves, “What if this person was my grandma? How would I treat her?”
High Tech
Today, more than ever, the customer journey ebbs and flows between websites, social media, in-person networking, and more.
When it comes to marketing, it is a cross-platform endeavor. You can’t just advertise in your local newspaper and expect to see the phone calls light up your phone. You have to be everywhere at once.
Clients expect you to be where they are. They want you to be tech-savvy.
Make sure your marketing covers both the classic interfaces such as face-to-face networking and a company website and the more modern such as SEO and social media.
The Story is Important
A luxury client wants a good story to tell to their friends. For them, the price includes the story.
Think about that Rolex watch I mentioned before. With all the innovations in technology over the years, odds are there’s a watch on the market that’s just as good as the Rolex but for a fraction of the price. But Rolex has a history. It has a story and a rich background of being the best and the most elite. Now, purchasing a Rolex is just as much about the story as it is about the watch.
Your brand needs a story. You need something original that your clientele can rally behind. You can be the company intent on funneling profits towards the fight against climate change. Or you can dedicate yourself to combating world hunger.
The sock company Bombas makes it its mission to help people in need. For every pair of socks, shirt, or pair of underwear purchased, Bombas donates a pair to a person in need. People are willing to pay more for a quality product because Bombas aligns with their personal beliefs.
Conclusion
While the luxury client is looking for VIP service, a good story, and something that not everyone has access to, they need one thing above all else.
Logic.
Remember, this client is most likely where they are today because they have made sound business decisions.
The high-end client will only purchase something if it satisfies their needs. The need can be entirely superficial or financially motivated, but it must be wholly satisfied.
Make sure that what you’re offering is not only all of the items described above but also makes sense to the client.
Written by Erika Towne