It’s no longer necessary for you to hide those online coupon codes that you’re embarrassed to admit you have to make your online purchases. As it turns out, the very wealthy are doing the same thing you are, according to Media Post’s Marketing Daily. If your income is over $100K, you are most likely responding to the slump in the economy by searching for bargains as opposed to buying without looking at price tags. You are searching for quality and value at the same time. No more pointing to items saying, “I’ll take that … and that … and that …”
But even if you’re categorized as affluent ($352K in discretionary annual income) your habits are probably similar. In one survey from MediaPost, it was determined that 70% of affluent respondents use the Internet to research purchases of significant cost prior to buying, such as high cost fashion and home purchases. And kids are getting into the purchases as well with their influence — 53% of affluent respondents noted that their children influence purchases with their own preferences. Marketers, take note.
As the old saying goes, time is money. This is especially true with affluent consumers. 70% surveyed said they preferred making their purchases online. However, the human touch has not been completely lost: the affluent preferred a retail purchase when it was quick or when they believed an experienced salesperson would add value to their purchase.
Not surprisingly, those in the survey with more money had less anxiety about their own future. However, that is not going to change their bargain shopping ways.
What does this mean for luxury brands, hotels, watches, cars, others?
Affluent purchasers will check your online presence and will comparison shop. So if you are targeting affluent consumers - they are searching for you on search engines - like the rest of the US population (or 83% of them). If they land on your site and it doesn’t contain information about your products, its characteristics, and even the price - guess where are they going? Where they can purchase your products from a reseller or authorized dealer or other channels.
We have consulted with many luxury brands - and companies can develop experiential online presences yet offer their customers the ability to purchase online. Many consumers purchase LCD TVs, Plasma TVs at $5, 10, 20K, what would stop them from purchasing a Tiffany ring, a Hermes Bag or a Cartier watch online? It is time for luxury brands to embrace e-commerce, and make it easier for consumers to find them online (rather than their savvier resellers) and market to them online.
