Luxury brands have long been seen as something for only the better-off. However, luxury sector companies have now realised that if they want to attract customers they ought to be investing more in social networks.
Some 85% of luxury brand marketers plan to increase their spending on digital channels in 2013, according to a recent survey* of over 100 marketers at major global luxury brands, carried out by Luxury Interactive, an annual conference staged in New York City by NY-based global research and conference company Worldwide Business Research, in conjunction with ShopIgniter, a company which provides promotional tools for many leading brands. Significantly, 72% will also be increasing their social media marketing spend. The reason, according to Marko Muellner, Vice President for Marketing at ShopIgniter is that “Our experience shows that roughly half of a brand's social fans are not in the house file, which means there is ample opportunity to introduce the brand to a new customer.”
Social networks a focal point
Responding to the WBR-ShopIgniter survey, 63% of luxury marketers forecast that by 2015 a brand’s digital marketing will be the most important form of marketing for reaching potential new customers – more important than traditional print advertising, TV, or loyalty programmes. When asked which marketing strategy they see as the most efficient on social networks, 81% said that “posting product imagery” – i.e. displaying photos – was the most efficient tactic, 75% rely on using video to engage fans and followers and 60% cited the value of “seeding new product launches”. In addition, 95% say they actively engage customers on Facebook. Twitter is not too far behind, used by 85%, followed by Pinterest (60%).
Improvements at all levels
Facebook is clearly the most popular medium. Fully 76% of the survey respondents said that if they had to choose only one social media account to promote their brand, they would definitely opt for this platform. The survey highlights the overall satisfaction of luxury brand marketers with the results of marketing campaigns already run via these networks. The report cites 63% of luxury brand marketers who, though fairly satisfied with results so far, are working to improve their social marketing; and also reveals that 46% of luxury sector marketers polled said that, while reasonably satisfied with results to date, they are working specifically to improve their mobile marketing results.
*The 2013 State of Luxury Digital Marketing survey