In Dan's latest newsletter, NO B.S. Marketing to the Affluent, he outlines the problems of someone selling to the super rich. This person sells a product the rich don't want anyone to know they own.What used to be a symbol that said 'you've made it', now says 'You're living a life of excess'.
He notes the trend in Hermes stores of customers who want their purchases put in unmarked bags. They used to get one request per month for the unmarked shopping bag, and now get 2 requests per day.
It's the climate of fear that has enveloped the rich. They're being demonized and punished for their accomplishments.
The good news is that high net worth buyers are still spending. As a marketer, you will simply have to dig deeper to find these clients....and appeal to them with a message that says, "You have earned this and don't let anybody tell you otherwise".
Always good advice from Dan.
Friday, August 28, 2009
Thursday, August 27, 2009
Buying Mindset of Millionaires
This recession has been nothing like past recessions. One big reason why is the the amount of the financial sector that's been effected.
Think of all the high net worth people employed by Lehman, Merrill, JP Morgan, Goldman Sachs, etc.How many are out of work? A lot. And the rest are having government regulators look at their pay.
These wealthy consumers still have money, but they have to be shown a combination of value, price and quality before they'll make a purchase. I read recently that these consumers still want the quality they're accustomed to (think Ritz Carlton), but they want it at a lower price.
Quality must be combined with an effective value proposition to make these buyers feel they're getting a good deal.
They don't want to sacrifice the luxury to which they've become accustomed, but want to feel they got a price break.
Something to keep in mind as you market to the rich.
Think of all the high net worth people employed by Lehman, Merrill, JP Morgan, Goldman Sachs, etc.How many are out of work? A lot. And the rest are having government regulators look at their pay.
These wealthy consumers still have money, but they have to be shown a combination of value, price and quality before they'll make a purchase. I read recently that these consumers still want the quality they're accustomed to (think Ritz Carlton), but they want it at a lower price.
Quality must be combined with an effective value proposition to make these buyers feel they're getting a good deal.
They don't want to sacrifice the luxury to which they've become accustomed, but want to feel they got a price break.
Something to keep in mind as you market to the rich.
What's Happening to the Super Rich?
This is an interesting article from the New York Times. How the guy who founded McAfee is almost broke. Well, still having 4 million dollars is hardly broke, but when you had 100 million, being left with 4 is quite a come down.
http://www.nytimes.com/2009/08/21/business/economy/21inequality.html
http://www.nytimes.com/2009/08/21/business/economy/21inequality.html
Internet Marketing to the Affluent
I was on an interesting webinar last week sponsored by Google. The topic was how the affluent use the internet. As many of you know, I've posted on this and am developing a program to help businesses market online to the affluent buyer.
The most interesting statistic from their survey was that millionaire earners are the most prolific shoppers on the internet.
WHY?
Because they have money to spend but very little time. This is a point I make repeatedly with my clients trying to market to the affluent. We know they lead very busy lives and have very little personal time. So, it makes sense that their first stop in any purchase is the internet.
If they don't like what they see of your product or service, then they'll simply move on and eliminate you from consideration.
What were some other salient points from the webinar?
Google also found that more companies are trying to use the internet because of cost-cutting.
Are you reaching the affluent using the internet?
If not, you should be.
If you are...are you seeing good results?
A little food for thought.
Susan
The most interesting statistic from their survey was that millionaire earners are the most prolific shoppers on the internet.
WHY?
Because they have money to spend but very little time. This is a point I make repeatedly with my clients trying to market to the affluent. We know they lead very busy lives and have very little personal time. So, it makes sense that their first stop in any purchase is the internet.
If they don't like what they see of your product or service, then they'll simply move on and eliminate you from consideration.
What were some other salient points from the webinar?
- The affluent believe that a company who is not online has cheapened their brand
- They get annoyed if they can't purchase something online and have to call a store to make a purchase
- Brand awareness isn't enough...you must have data to satisfy the need for due diligence
- TESTIMONIALS ARE KING!!! Those of you who have spoken with me know how strongly I advocate 'peer recommendations' or testimonials.
Google also found that more companies are trying to use the internet because of cost-cutting.
Are you reaching the affluent using the internet?
If not, you should be.
If you are...are you seeing good results?
A little food for thought.
Susan
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