What do you think when you think of luxury? Sure, Louis Vuitton bags, Lambos, and bottles of Dom Perignon spring to mind, but the term may not be as regal as you think. By definition, luxury brands are ones that provide a sense of exclusiveness; they’re brands that have built a reputation out of offering a highly personalized service that typically exceeds expectations.
With the release of Interbrand’s yearly Best Global Brands report earlier this month, luxury was far and away this year’s best-performing category. In fact, luxury products increased an impressive 42% from last year. It seems everyone’s hopping on the luxury bandwagon these days — from tech companies to budget brands and more.
If you’re wondering on how to capitalize on this growing market, here are few tips to keep in mind:
Always make it personal
When it comes to successful luxury brands, one of the biggest takeaways is the importance of keeping it personal.
Samsung, for instance, has successfully started tapping into the luxury sector this year with great results. So how was Samsung able to make the leap from run-of-the-mill electronics to $2,000+ smartphones? By offering exclusive perks and rewards for every high-end phone sold. New initiatives like their VIP Hotline has helped catapult the company into luxury territory, and an influx in customer service call centers has helped make their customers feel all warm and fuzzy inside. Plus, it’s easier to justify a pricey purchase when you know there’s a face behind it.
Think of ways to help make your customers feel special, and then work to implement new initiatives to reward the ones who buy the most. It doesn’t have to be anything major; after all, a little recognition goes a long way.
Make it feel exclusive — even when it’s not
Another key trend is the fact that most of these brands thrive on exclusivity. This can be a tricky theme to follow, especially if your market is more homogenous than others. Fortunately, there are simple ways to make your product appear exclusive even when it’s not.
Kickstarter is a great example. While the company isn’t necessarily considered a luxury brand, they’ve done a fantastic job of personalizing their service to maximize profit and ROI. Users who donate more are almost always greeted with exclusive perks — dinner with a celebrity, swag bags, and more. This sort of quid pro quo system helps both the consumer and the brand by offering more incentives to contribute while simultaneously generating more sales.
Tailor your service to the customer
One of the biggest factors separating luxury brands from the rest is the fact that premium brands tend to provide a more premium, personal service. Whether this means they’re known for having exceptional front-facing customer service, 24/7 on-call support, or more. If you want your brand to exude a sense of luxury, you need to shine the spotlight on the consumer.
Every customer wants to feel valued, and by creating initiatives to emphasize their importance, brands can help foster that coveted client-customer relationship and help generate more return revenue. If you have a handful of recurring customers who’ve been with you for years, take the time to make them feel welcome. Exclusive coupons, sales items, and even personalized work can all go a long way in helping foster your relationship with your customers.
Not sure how to take your business to the next level? StellaPop can help! Check out the chapter “Would You Like Some Veuve Cliquot with Your Simplicity?” in our Simplicity Ebook.