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The identikit of luxury brand consumer (and how to engage them)

Consumers are not all the same. In particular, luxury brand consumers have specific characteristics that companies should know, especially if they want to improve their customer engagement.



Who is the typical luxury brand consumer? Some say that the typical luxury brand consumer is female, aged between 35 and 54, living in an urban area, highly educated, and with a high disposable income. In reality, a more in-depth luxury consumer segmentation would show us that, for example, GenZ also has no shortage of high-spending customers. However, there are some characteristics that, more than others, unite luxury consumers regardless of gender, age, and even income. Here are a few of them.

The Luxury Consumer Profile

1) Luxury brand consumers have no limits

High-spending customers have no geographical limits. They are used to traveling a lot and shopping in stores around the world, whether it's in London, New York, or Dubai.

In addition, they also have no limits when it comes to time: they are willing to wait for the products they want, even if it means being put on a waiting list.

Finally, they have no limits when it comes to the price they have to pay. They don't mind spending on the products they want, but they expect to get what they pay for.

2) They place high importance on quality

Just because they're willing to pay more than the average, it doesn't mean they're willing to throw money away. Their expectation of the product they are buying is high. They want to purchase valuable products, made to last, and which materials are excellent.

3) They want to feel special and unique

Luxury consumers want their purchases to reflect their uniqueness and personality. They crave products and services that are not available to everyone. For this reason, they love customised, rare, or limited edition products. Indeed, luxury goods are seen as a way to differentiate oneself from others. However, the exclusivity and prestige they are looking for are not just about the product

4) They are also looking for a luxury experience

It means that they want to be able to enjoy a luxury lifestyle even when they are shopping, both in-store and online. They want to be pampered, whether it is through a glass of champagne while waiting for the sales assistant to get their dress, or receiving a free gift with their online purchase.

5) They are very brand-conscious

They usually buy products from brands that they perceive as  luxury. These brands don't need to be famous, as consumers favour quality and exclusivity.
Moreover, they tend to stick with the same brands. Once they find the right ones, they tend to buy from them repeatedly throughout their lives. In other words, they are usually loyal to a few brands that they trust.

6) They value word of mouth

High-spending consumers are often part of the same social circles: they go to the same places and meet the same people. Whether they are VIPs, nobility, or just plain rich people, they form closed groups where word of mouth matters a lot when they are looking for a certain product or service. Social networks like Instagram can surely influence their purchasing decisions, as they look to follow trends from opinion formers and also what friends and acquaintances.

7) They have a ROPO approach

ROPO is the acronym for "research online, purchase offline." In other words, luxury consumers may do their research online before going to a store to buy the product they want.

They might also buy online, but this is usually for products that don't need to be tried on or that can be easily returned if they are not the right size. For luxury consumers, the in-store experience is still very important. They want to see, touch and feel the product before they buy it. Since the pandemic, luxury fashion has seen a significant growth in online sales, and some of the reluctance of buying online has been significantly reduced.

The identikit of luxury brand consumer (and how to engage them)

How to attract and retain luxury brand consumers

So, now that you know a little bit more about luxury brand consumers, let’s see what you can do to better engage with them.

1) Offer a personalised experience

Luxury brand consumers want to feel like they are being treated as VIPs. So, you should do whatever you can to make them feel special and valued. Running out of ideas? What about personalised service, private shopping events, or exclusive products? In this regard, by exclusive products, we also mean custom products.

2) Create an emotional connection with customers

Luxury brand consumers love to be part of a community of like-minded people. They also want to feel an emotional connection with the luxury brands they purchase from. What you can do is focusing on your company’s storytelling and sharing online content that tells its history, values, vision, mission.

3) Focus on quality

As we mentioned before, luxury brand consumers place high importance on quality. For this reason, you must make sure that your products are of the highest possible quality, and that your company is using the best materials and craftsmanship.

Furthermore, if yours is a sustainable brand, let consumers know your commitment through a traceability and transparency system.

4) Promote exclusivity

Your brand should promote a sense of exclusivity by offering special privileges and perks to loyal members, such as VIP access to sales and events, early access to new products, and so on.

Another way to reinforce exclusivity is through a system that certifies the authenticity of the product the consumer has bought. In fact, the world of luxury is heavily affected by counterfeiting, so an authentication system offers incontrovertible proof of your product's value. 

5) Implement technology in your stores

Luxury brand consumers like to shop in-store, but they want to enjoy the benefits of new technologies. In particular, they might appreciate everything that allows them to pay more simply, perhaps with a smartphone or smartwatch via contactless technology.

Furthermore, it might be a good idea for staff to be equipped with tablets to search and order products in the online brand shop, without the customer having to do it once home, with the risk of losing interest. This phygital experience will make the customer feel even more pampered.

6) Have a strong online presence

Nothing works as well for customer engagement as digital channels. Website, social networks, newsletters, as well as push notifications, and digital loyalty programs are just a few of the many ways you have at your disposal to speak directly to the individual customer, give them interesting content, and incentivise them to take action. 

In addition, through innovations such as QR codes applied to product labels or packaging you can give customers access to even more exclusive content.

7) Invest in customer service

Customer service is another important aspect to focus on if you want to engage luxury brand consumers.
As we mentioned before, these customers like to feel valued, so it's important that they have a good customer service experience, both in-store and online.

For online customer service, you should use multiple channels: a call centre, social media inboxes, but also an AI chatbot on the website. The goal is to respond in real-time and completely solve customer problems.

Still wanting more information on luxury brand consumers? Then read this article: "The impact of technology on luxury's customer experience”.

20 Oct 2022

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