A luxury customer is different to a “normal” one
Founder & CEO of watch retailer Crown & Caliber, Hamilton Powell, tells eSeller how he built his online business in the toughest market of all: luxury.
The luxury market is tough. Ecommerce is tricky. When the two are combined, an ambitious undertaking is at hand. Our business did just that – and so we thought it would be helpful to outline what we believe the keys are to successfully operating an online business in the luxury market. Based on our experience, there are three main factors to adhere to if you want to tackle the luxury online market:
- White Glove Experience
- Knowing Your Customer
- Thoughtful Marketing
White Glove Experience
No matter what your product or service, in order for it to succeed in the luxury category it must provide the customer with a white glove experience. In a lot of ways, it is this type of experience that has come to define “luxury”. This is easier to do in a brick and mortar setting than in an online setting – but it can be done.
Case and point, in an effort to separate ourselves from all of the “watch buyers” out there we created our Modern Consignment service whereby we assume a concierge role in order to help our customer sell his/her watch for them. Our customers love it.
Knowing Your Customer
To succeed in the luxury market, you have to know your customer because the luxury customer is different than the traditional customer. Such luxury customers tend to share certain attributes:
Sophistication: Luxury customers tend to be sophisticated and therefore desire a service or product with likeminded sophistication.
Example: Our Modern Consignment service provides transparency to the luxury customer, a level of sophistication they require.
Gun-shy: Due to affluence, luxury customers will most likely be skeptical of your service/product. Therefore it is your job to make them feel comfortable.
Example: We post all of our customer testimonials on our site.
Expectant: Because they tend to pay a premium, the luxury customer expects excellent quality in your product or service. So make sure to over deliver, whatever you do.
Example: We send each of our consignors a hand written thank you note.
Thoughtful Marketing
At the end of the day, it’s all about sophistication
When marketing to the luxury customer, one must be thoughtful and targeted. We have succeeded in this in four main areas:
Social media: Too many companies approach social media with the goal of getting as many followers or likes as possible. In fact the more important thing is the relevancy of your following.
For example, we have tried to make our social media efforts as interesting as possible. Our highlight is our weekly Photo Friday contest where our followers submit photos of watches they are wearing. Our followers then vote on the winner, who receives a prize.
Referrals: When it comes to the luxury customer, nothing is more powerful than a referral. There is nothing wrong with nudging your customers to that end. We have instituted a referral program with our customers, and it has been highly successful.
Informative Marketing: Instead of being another loud voice in the ear of the customer, try to actually educate or inform the customer. This builds trust so that when they are ready to buy, they come to you. We have done this in various ways, one of the most successful of which has been our Watch Guy Quiz – an interesting quiz that personifies your watch passion.
For more, visit: www.crownandcaliber.com
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