High end brands are starting 2018 afresh by updating their digital luxury marketing strategy for the year. Luxury brands are too often trailing behind other industries when it comes to online innovation. But data show that high-end brands who embrace digital are winning market shares among the affluent Millennials and Generation Z consumers in Asia.
How luxury brands upgrade their digital marketing strategy for affluent Millennials and Gen Z in Asia?
The influence of print advertising continues to fall among the next generation of luxury consumers in Asia. As the traditional medium of choice for luxury brand fails, how can companies selling high-end products and experiences engage with their younger audience without compromising their values?
Digital marketing for luxury brands is an increasingly complex space. New social platforms emerge on a constant basis. Fashion and lifestyle influencers come and go. The options available for you to invest your marketing budget are endless.
At mOOnshot digital, we always start the conversation with new clients around the core values of their brand, what they stand for, and who is the right audience for their high-end experience, be it a product or a service. As a luxury business, it’s important for you to start the year by taking a moment to step back and consider all your options.
Step 1: Start from the top, define your luxury brand vision and KPIs
Every successful luxury digital marketing strategy starts from the top. You need an engaged and opinionated leadership group in your organisation who understands the need for a change and supports the internal culture shift that is required.
“The single most important thing, from my experience, is for luxury companies to have a strong internal vision and willingness to operate a digital transformation of their business.”
Simon Beauloye, co-founder & CTO of mOOnshot digital
Together with defining a strong vision, digital luxury marketers need to identify the right success metrics to evaluate the performance of their campaigns and decide if their investments are aligned with the broader company goals. Review your key performance indicators and make sure that they are indeed supporting your company’s vision. Success metrics for luxury marketing might not necessarily be tight to retail sales (which can still mostly happen offline) but they need to be used as a proxy to assess online performances.
Marketing professionals need to break down their sales funnel in separate stages, each with their own set of success metrics.
As a result, you will be able to identify specific areas of your digital marketing plan that require more attention or need to be updated altogether. You can also investigate a random sample of affluent consumers from their first online interaction with your brand all the way to the final (offline) sales and extrapolate from their behaviour the expected sales number for the remaining of your audience. While not perfect, this strategy when executed right can greatly improve the understanding of your digital marketing impact on the final sales revenue of your organisation. Helping you secure more budget along the line.
Step 2: Prioritise what you will and will not do as part of your digital marketing strategy
More often than not, luxury brands end up with a never-ending list of ideas and suggestions to improve their digital marketing strategy. We’ve seen this time and again at mOOnshot digital when conducting brainstorming sessions with our clients at the start of a new project.
That’s why prioritisation becomes one of the most important skills that marketing leaders need to build. Digital opens up the door to a limitless number of opportunities for you to invest your marketing budget in. Not all options will be equally profitable however.
Identifying low-hanging fruits and prioritising activities based on the opportunities that will yield the highest profit is critical to a successful digital luxury marketing strategy.
Step 3: Execute your digital luxury marketing plan with care
Luxury brands are often very cautious when approaching digital marketing, and with reasons, by fear of compromising their identity and values when going online. Heritage and tradition are oftentimes essential elements of a luxury brand’s appeal and recognition. As a marketing professional, it is your responsibility to treat your brand with care and attention.
It’s critical at this stage to identify marketing agencies that understand your luxury needs and company internal processes. You need a design, branding, and digital advertising partner that will treat your brand in its individuality without applying templates or standards that don’t make sense to your brand.
This is why the mOOnshot digital team creates bespoke project plans for each and every luxury client. No two brands are the same. The essence of a luxury brand needs to be understood and carefully considered before deciding how to update its digital marketing strategy. Understanding a brand’s objectives, organisational structure, and history is paramount to ensuring long term success.
Step 4: Monitor, measure, optimise, and repeat
Digital is a constantly evolving industry. As a result, what you did last year may or may not be relevant this year. An important skill for any marketing professional is the capacity to learn and adapt.
Talk to your affluent customers, attend industry events, meet with partnering agencies to keep a finger on the pulse and identify what will have the most impact to your organisation. Keep in mind that not every digital opportunity will make sense for a luxury brand. A certain element of timelessness and stability is required before you can fully get behind a new trend.
Along the same lines, luxury digital marketing professionals need to regularly review the performance of their campaigns and assess what needs to be updated, maintained, or stopped altogether. Optimising your digital campaign is essential to keep your costs down and invest where your affluent audience is.
At mOOnshot digital, our experience working with luxury brands from all industries has allowed us to build the right level of understanding and attention to help luxury brands engage with their affluent consumers in Asia. Get in touch with us if you too are ready to embark on this digital journey and future-proof your business.