Louis Vuitton, Gucci, and BMW.
What do all of these brands have in common?
They sell luxury goods.
I’ve always found the luxury industry to be absolutely fascinating as a copywriter and marketer.
I believe it’s one of the best examples of how proper branding, targeting, and marketing can generate incredible revenue.
Seeing as the luxury industry has seen continual growth in the past decade, there are no signs of it slowing down and the strategies I’m teaching you today play a big role in its expansion.
There are fundamental strategies that these brands use to grow to household names.
Any company can use these techniques to instantly make their brand appear more luxurious, authoritative, and exclusive.
Follow along if you’d like to learn how 🙂
Create the clubhouse effect
A product isn’t luxurious if everyone has access to it.
That’s why every luxury brand has an aura of exclusivity and rarity. I like to call it the clubhouse effect.
If you can’t drop $2,000 on a purse, you’re not in the clubhouse. If you don’t own the $125,000 BMW, you’re not in the clubhouse. You get the point.
You can create this effect by using rare materials, creating a limited amount of inventory, or only catering towards a very specific target audience.
Have you ever seen those Yeezy sneakers everyone is going crazy about right now? They are the perfect example.
Adidas purposely only creates a limited amount of every new model to make them appear rare.
While they sell for $200 from a retail store, they are often resold for upwards to $1,000!
This is also an excellent example of using scarcity to entice people to purchase the shoes because there’s a good chance they won’t be able to get them or they’ll have to pay insane resell prices.
Another brand we can learn from is Paul Parkman. This luxury shoe company uses exotic materials like crocodile and python to make their footwear one-of-a-kind.
You can’t purchase boots like these just anywhere which creates the clubhouse effect I was talking about.
Help customers use their imagination
Let’s be honest. A big reason why consumers purchase luxury goods is to portray a certain image, look flashy, and appear wealthier than they are.
I’m generalizing, of course, but keep with me.
It’s not outrageous to think that someone buying a luxurious sedan wants to look professional and feel business-like, right?
This is exactly why you can market your luxury product by helping them imagine what it would be like to experience having it.
Continuing with the car example, you might write copy for an advertisement or web page saying something like:
You will feel like a millionaire driving this new BMW 328i and everyone will turn their head when you drive by thinking you are one.
Sales copy like this appeals to the deeper primal and emotional reason that a customer is purchasing a luxury product.
It also allows them to imagine what it would be like to use the product which is a car in this case.
This strategy is especially effective for items you can’t easily try like a vehicle.
Rolls Royce subtly pulls off this technique on a web page for their new SUV.
They state that the Cullinan has incredible comfort and space for creating unforgettable memories with friends.
This can instantly make customers imagine what it would be like to visit a cottage or road trip in this car.
Use influencers to make products go viral
Did you know that 39% of brands plan to increase their budget for influencer marketing?
You should, too.
Influencer marketing is one of the most cost-effective advertising strategies you can invest in.
You can pay a social media influencer or another brand with a large loyal audience to promote your product.
This can easily have a much better ROI and cost-effectiveness than PPC or many other approaches to marketing a luxury business.
The key is to find influencers who share similar values and target audiences.
Otherwise, you will be advertising to the wrong group of people and won’t see much results from your campaign.
And there’s no better place to find luxury influencers than Instagram.
I recommend that you use hashtags to search for relevant accounts within the industry like #luxury, #luxurylifestyle, or niche-specific keywords.
Find accounts which have potential and save them in a spreadsheet or another tool.
You can have your social media or PR team reach out to them asking if they’d like to collaborate.
Ask for their rates and if they’d be willing to accept a free product in exchange for a sponsored post.
Alternatively, you can have them shot out your brand, new product, or promotion without sending them any physical goods.
Luxury goods come with high price tags so it’s rare to send an influencer designer clothing, a sports car, etc.
Don’t neglect customer service
When you step into a designer store like Burberry or Louis Vuitton, what’s the first question you’re often asked?
“Would you like a glass of champagne or tea?”
That’s how it’s done.
Brands like these treat their customers like kings and queens. Offering champagne and having a lounge within stores also adds to the luxurious branding.
It makes you feel like you’re in a completely different world.
Loyalty and repeat purchases are huge components of a successful luxury business.
Customers who come back to purchase new releases or existing products have very high average lifetime values.
This is why you must treat them extremely highly and ensure they are 100% satisfied.
Live by the saying “The customer is always right” and you will have no shortage of loyal customers in the long term 🙂
Pricing reflects luxury
If Ferrari’s sold for $15,000, they wouldn’t appear very luxurious.
Everyone would have them which would negatively affect the exclusivity as I spoke about earlier and it would make them appear less special.
Don’t get me wrong.
I love supercars and I’m sure a Ferrari is worth every penny it’s sold for, but I don’t doubt it’s marked up to hundreds of thousands of dollars on purpose.
The price positions it as top-of-the-line and miraculous.
This is why one of the smartest strategies luxury brands can use to increase revenue is simply increasing how much they sell products for.
Imagine that you received 1,000 orders every month at an average value of $300.
If you increased the average value up to $400, your monthly revenue would jump from $300,00 to $400,000!
You don’t need any extra customers or new marketing channels. You simply just increase how much you sell your products for.
Higher prices are also associated with quality, rarity, and worth which aligns perfectly with a luxurious item.
Final thoughts on luxury marketing
The luxury industry is one of the finest examples of how to pull of branding and positioning properly.
If you’re growing a luxury brand yourself, apply the following main takeaways from today’s article to start growing your brand faster: