Luxury brands falling short with online communications

The study, commissioned by Microsoft Advertising and KR Media and conducted by Essential looked at luxury consumerism and digital media.

The qualitative worldwide study conducted in late 2007 was designed to identify the optimum strategy for luxury brands to engage with consumers in the digital world.

 Its findings reveal consumers of high-value luxury brands as actively using online and digital media to engage with and talk about luxury brands and that the internet is already an active part of the typical purchase cycle.

The research also highlights that despite the perceived loss of exclusivity for luxury brands accessible online, luxury consumers increasingly rely on digital media and technology and expect to engage with brands, including luxury brands, through digital media.

Indulgence, Exclusivity and Status are identified as the three core motivations for luxury goods purchasing that should be reinforced in the form, context, tone and execution of digital communications to luxury brand consumers. 

Beth Uyenco, Global Research Director, Microsoft Advertising comments: “The perception of digital media as counter-intuitive to luxury brand management is now firmly laid to rest by the huge desire of luxury consumers to engage with exclusive brands online; the proviso being that luxury brand owners must stay true to the offline qualities of the brand and seamlessly extend the experience online to satisfy luxury consumer motivations.

“Our research findings establish a framework for luxury brand owners to make sense of the online world and our strategic guidelines illustrate how they can best exploit the huge opportunity to acquire and engage with consumers online.”

Insight for luxury brand owners on how to contextually and relevantly reach niche consumer audiences is explained through the ‘Luxury Brand Engagement Model’ developed by Essential, based on six key stages of consumer luxury goods purchasing behaviour:

1.       Awareness

o   Be there, to stimulate word-of-mouth and keep consumers ahead of the game

o   Underline exclusivity through sympathetic targeting and exclusive content

o   Reinforce brand values by pushing offline creative to the next level online

2.       Admiration

o   Set the gold standard for digital advertising; captivate don’t irritate

o   Offer rational and emotional engagement – entertain consumers online

o   Encourage sharing and talkability – provide interactive elements to pass on

3.       Exploration

o   Convey brand heritage, authenticity and quality to reinforce brand mythology

o   Replicate in-store experience to extend excitement online

4.       Consideration

o   Enhance luxury experience through digital media; make the intangible, tangible

o   Flatter the luxury consumer, provide expert advice and peer-to-peer consultation

5.       Purchase

o   Deliver a superior online purchasing experience

o   Direct visitors to retail stores to complete the experience and purchase cycle

6.       Ownership

o   Welcome digital consumers to ‘the club’; enhance sense of belonging

Alex Charlton, Director at Essential, added: “Consumer relationships with luxury brands are far deeper than the utility of buying a pair of shoes for example, extending far into the brand history, design and manufacture of the product. The brand engagement model offers a way for brand owners to understand the key phases of consumer engagement and apply sympathetic digital marketing communications in the right formats, targeted to the right consumers at the right time to maximise brand engagement at every stage of the online consumer experience.”