Marketing of luxury goods to migrate to mobile channel

Different industries have different channels of particular focus, as marketers opt for mediums of promotion that tend to produce the greatest return on investment (ROI). To this end, mobile marketing strategies have emerged as a particularly strong branding channel for companies and small businesses selling niche, luxury items. While retailers for these goods have traditionally shied away from mobile and digital marketing campaigns, the tide appears to be turning in favor of mobile marketing strategies, according to a new report from eMarketer.

The report, entitled “Luxury Marketing:  Recreating the One-on-One Experience with Mobile,” revealed that 43 percent of survey respondents said their luxury clients were migrating more quickly toward mobile promotions than their mass-market counterparts. Even more prominently, approximately 68 percent said that their use of mobile formats was likely to expand by a substantial amount in 2012, when compared to the last year.

Despite the focus on increasing digital efforts, one traditional piece of marketing strategy that still resonates well among consumers of luxury items is direct mail. According to Deliver Magazine, there are several advantages in the luxury goods sector that can be afforded through this channel. For example, this marketing tactic allows retailers to specifically target buyers at their desired income levels through the thorough analysis of demographic data. Additionally, as these commodities have a high single-transaction value, low response rates aren’t as big an issue as they might be for other products.

Direct mail also works effectively in conjunction with mobile marketing strategies as part of a multichannel campaign. According to Deliver Magazine, many catalogs now place barcodes and QR codes on their catalogs, prompting customers to use their mobile phones to access a whole new world of promotional content and insider deals. This blending of two disparate marketing channels has been proven to be an effective and engaging medium for luxury good marketing executives.

Finally, more high-income individuals own smartphones and tablets than ever before, further dirivng the push toward mobile marketing strategies among luxury retailers. The eMarketer study revealed that 61 percent of respondents with a household income of higher than $100,000 per year owned smartphones, while 27 percent of those belonging to this income bracket owned tablets. This presents an intriguing opportunity for luxury brand marketers to tap into an emerging mobile market.

Chelsea Segal

Chelsea Segal

Chelsea Segal is the CEO of Targetwise. TARGETWISE empowers agencies, brands + marketers with results-oriented solutions that grow, nurture + maintain a social ecosphere.

Neutralizing all digital channels, we accelerate performance by applying data driven optimizationin real-time across a superior blend of mobile, video,display and email inventory. Converting the right people at the right time, we drive brand solutions, while securing optimal impact, engagement + results.
Chelsea Segal