Social Media | The Knowledge of Luxury

Social networking and luxury

Posted in Social Media
Tags: Facebook, Gucci, Louis Vuitton, Tiffany, Twitter —

Larry Pimentel, President and CEO of Azamara Club Cruises 05 August 2010

It once was thought that online social networking was the exclusive digital playground of kids and job hunters. But increasingly social networking is proving to be one of the most powerful channels to deliver personalised marketing messages directly to luxury consumers.

As a travel professional, you know that you need to engage your clients wherever they are located. And right now they are flocking to online social networking websites. Are you feeling a bit intimidated by social networking? Don’t be! You can easily embrace the channel to elevate relationships with your clients and market luxury travel to a select audience.

There are more than 120 million active users of Facebook in the USA alone. Luxury brands such as Gucci, Louis Vuitton and Tiffany & Co have tens of thousands to hundreds of thousands of devoted “friends” on this channel. Even on Twitter, approximately 20 percent of “tweets” mention a brand somewhere in their text.

Still think your clients are not engaged in online social networking? In a recent survey conducted by the Luxury Institute, 72 percent of consumers with an average household income of $415,000 said they belong to a social networking site, with Facebook and Twitter ranking among the top three fastest growing sites. There also is plenty of room in this realm for you to start a conversation about up-market and prestige brands with a potential client.

So why is social networking so “hot”? Like other media, social networking helps you tell a story. But what differentiates this new channel is that it helps tell the story in real time as it unfolds. The immediacy of social networking channels makes you the “insider” and the “go-to” expert.” They also help you efficiently communicate with a large number of clients simultaneously.

Social networking also gets your audience, and your clients, involved. It invites them to engage in a discussion with you and your other clients in a forum that you’ve created, helping you to build and enhance your client relationships on a whole new level.

Through the proliferation of smartphones with social networking capabilities, such as iPhones and Blackberries, your clients can now receive and respond to your Facebook and Twitter updates wherever they are, whenever they want. Up to 30 million active Facebook users access the service through a mobile device. Now you’re doing mobile marketing!

Many of these social networking websites are very user-friendly and do not require technical expertise, so almost anyone can do it. All you need to do is sign up and start posting. Be sure to invite all of your clients to “like” your Facebook page and “follow” your Twitter feeds. If you have a blog, add a button that allows visitors to join your social network with just one click. And while you’re doing that, be sure to “retweet” your Facebook update and post your tweets on your Facebook page. In this way, you can connect with people in the various communications channels that you own.

Keep things fresh with regular updates, but stay on topic. Creating a store of interesting discussion topics can be very simple. Ask your friends and followers what their opinions are on a luxury travel news item that you saw during your morning headline searches, or briefly recount a memorable luxury travel experience that you can deliver again. Someone may ask you to tell them more, and that someone may become a new client.

Social networking sites also are great channels to gather intelligence about what your clients are thinking about certain topics. Spark a conversation by asking a question like what port city offers the best fine dining. Or survey your friends and followers to see what they think will be the top exotic region to visit next season.

Of course, timely responses to your Facebook friends and Twitter followers are critical to your social networking success. In the luxury sector, you know that service is a prerequisite. Responding to feedback from your Facebook friends and Twitter followers is an extension of that high-touch service. This, in turn, represents an opportunity for you to create a new relationship or foster an established one.

Though the internet is not a new space, engaging luxury travel clients through social networking is a new way of doing business. Luxury brands are flourishing through social networking and luxury consumers are paying attention - perhaps even more than the average consumer. Are you the one who can help them find an enriching experience in their search for information through social networking? In the end, if you don’t engage your clients in the places where they are, someone else most certainly will.

http://www.marketingweb.co.za/marketingweb/view/marketingweb/en/page71621?oid=129078&sn=Marketingweb%20detail&pid=71616

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‘Facebooks’ for the Rich Flounder

Posted in Social Media

WSJ.com
October 15, 2009, 2:00 PM ET

In real life, the wealthy like to stay close to their own kind.

Whether it is in Palm Beach, Fla., and Aspen, Colo., or in peer groups and charity balls, millionaires tend to like the “consoling proximity” of other millionaires, as F Scott Fitzgerald wrote in the “Great Gatsby.”

But in cyberspace, a funny thing is happening: the rich are joining the crowds. They don’t want their own velvet rope Web sites. They want to join the masses. This has proven especially true with social networking, the one area cyber-gurus and wealth watchers were sure the rich would adopt as their own.

In its discussion about Harvey Weinstein selling his majority stake in ASmallWorld.Net – the so-called elite social-networking site–to one of the Nestle heirs, Gawker says traffic on the site has been flat for years. It also says members were tired of all the ads and the constant pestering to log in. (As a member myself, I can verify.)

The reason according to Gawker:

“Rich guys don’t want to socialize only with one another, and once you let in enough attractive young women and such your VIP site loses it cachet and everyone might as well just hang out on Facebook, which Metcalfe’s law teaches us is exponentially more useful anyway.”

The point is echoed in a recent survey by the Luxury Institute, which surveyed 400 consumers with an average income of $415,000. It said the 72% of the respondents belonged to social-networking sites. And the fastest growing sites were Facebook, LinkedIn and Twitter.

Read the full article http://blogs.wsj.com/wealth/2009/10/15/facebooks-for-the-rich-flounder/

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Social Media Expected To Drive Holiday Shoppers

Posted in Retail, Social Media

by Sarah Mahoney

With consumers determined to limit their holiday spending, a new study predicts they will do more of their Christmas bargain-hunting through social media, and less through search engines or shopper review sites.

The study, from Oneupweb, compared holiday traffic trends over the last two years at the top-ranking e-tailers, social sites and review sites against the latest user trends, and found that while search engines have typically been the leading driver to retail sites, “social media is influencing search behavior and affecting the purchases a consumer makes.”

Sarah Mahoney, Oct 15, 2009 01:13 PM

With consumers determined to limit their holiday spending, a new study predicts they will do more of their Christmas bargain-hunting through social media, and less through search engines or shopper review sites.

The study, from Oneupweb, compared holiday traffic trends over the last two years at the top-ranking e-tailers, social sites and review sites against the latest user trends, and found that while search engines have typically been the leading driver to retail sites, “social media is influencing search behavior and affecting the purchases a consumer makes.”

“We found that traffic to social sites steadily gained on retail sites in 2007 and 2008,” it says. Despite a holiday bump, direct traffic to online retail sites fell 10%, behind traffic to social sites, which grew 12% from December 2007 to December of last year. “Traffic to the review sites remained stagnant throughout the year, experiencing a mild bump during the holiday season,” the report says.

What’s happening, according to the Traverse City, Mich.-based research company, is that consumers are much more engaged in talking about products and deals in the social world. Facebook — with active users now averaging about 15 hours on the site per week — contributes more than 3% of all traffic to the top retail sites online, it says, and as many as 25% of social network users post links to other companies, products or services. The report also cites a Penn State study, which found that one in five tweets mention a specific brand or services.

Last year, e-commerce drew in $25.5 billion dollars, a 3% decline, while online traffic grew 10%.

Meanwhile, a separate study from the Luxury Institute reports that wealthy consumers are also warming to shopping via social networks. The study, which looked at 400 people with an average income of $415,000 and household net worth of $4.9 million, found that nearly one in five social networkers in this group also belong to a social shopping site, with Ideeli and Rue LaLa the most popular. And while 13% have joined a group that is based around a product, service or a brand, 24% say they would be likely to do so. The Luxury Institute also found these high-net-worth individuals have an above-average participation rates: Membership in social networking sites has increased from 60% in early 2008 to 72%, with 62% of those in the 55-plus age group participating.

The study, from Oneupweb, compared holiday traffic trends over the last two years at the top-ranking e-tailers, social sites and review sites against the latest user trends, and found that while search engines have typically been the leading driver to retail sites, “social media is influencing search behavior and affecting the purchases a consumer makes.”

“We found that traffic to social sites steadily gained on retail sites in 2007 and 2008,” it says. Despite a holiday bump, direct traffic to online retail sites fell 10%, behind traffic to social sites, which grew 12% from December 2007 to December of last year. “Traffic to the review sites remained stagnant throughout the year, experiencing a mild bump during the holiday season,” the report says.

What’s happening, according to the Traverse City, Mich.-based research company, is that consumers are much more engaged in talking about products and deals in the social world. Facebook — with active users now averaging about 15 hours on the site per week — contributes more than 3% of all traffic to the top retail sites online, it says, and as many as 25% of social network users post links to other companies, products or services. The report also cites a Penn State study, which found that one in five tweets mention a specific brand or services.

Last year, e-commerce drew in $25.5 billion dollars, a 3% decline, while online traffic grew 10%.

Meanwhile, a separate study from the Luxury Institute reports that wealthy consumers are also warming to shopping via social networks. The study, which looked at 400 people with an average income of $415,000 and household net worth of $4.9 million, found that nearly one in five social networkers in this group also belong to a social shopping site, with Ideeli and Rue LaLa the most popular. And while 13% have joined a group that is based around a product, service or a brand, 24% say they would be likely to do so. The Luxury Institute also found these high-net-worth individuals have an above-average participation rates: Membership in social networking sites has increased from 60% in early 2008 to 72%, with 62% of those in the 55-plus age group participating.

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=115513

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Luxury Brands Must Embrace Social Networks as Major Drivers of Customer Relationships

Posted in Press Releases, Social Media, WealthSurvey

Wealthy Consumers Embrace Social Networking

Luxury Brands Must Embrace Social Networks as Major Drivers of Customer Relationships, According to Luxury Institute’s “Social Networking Habits and Practices of the Wealthy”

NEW YORK (October 15, 2009) - The objective and independent New York City-based Luxury Institute (www.LuxuryInstitute.com) released its latest WealthSurvey today documenting the Social Networking Habits and Practices of the Wealthy.

According to a sample of more than 400 high net-worth consumers, social networking sites are now mainstream channels of interaction for wealthy consumers of all ages:

Membership in social networking sites has increased significantly since early 2008 from 60% to 72% of wealthy consumers. Wealthy consumers 55 years of age and above have participation levels of 62%.
Facebook, LinkedIn, and newcomer Twitter have shown the strongest growth in that timeframe.
One out of four (24%) wealthy social networkers say they would be likely to join a community dedicated to a luxury brand that is sponsored by the brand, and 20% would join an independent luxury brand community not sponsored by the brand.
Nearly one in five social networkers belong to a social shopping site. Ideeli and Rue LaLa are the most popular.
More than 40% of wealthy social networkers say they do notice advertiser brands on social networking sites they visit.
Thirteen percent of social networkers have joined a group that is based around a product/service or a brand. Of these, more than one-third were solicited via email or other form of communication.

“As the luxury industry tries to reinvent itself, we continue to provide the only unbiased and objective research that helps the industry see where wealthy consumers are going and where the industry needs to follow,” says Milton Pedraza, CEO of the Luxury Institute.”Our research indicates strong participation among wealthy consumers in all key evolving areas of social networking. Although no one can predict the new innovative forms of interaction that will take place online, it is clear that social networks will serve as central and irreversible conduits for consumer-to-consumer and consumer-to-provider cooperation and value creation in the near future. We are seeing more leading luxury brands embrace social media, but the overall luxury industry continues to lag to its own detriment.”

A national sample of more than 400 wealthy American consumers was surveyed online by the Luxury Institute. The Institute’s respondents had an average weighted household income of $415,000 and an average weighted household net-worth of $4.9 million. Survey results are weighted to match the profiles of the latest Survey of Consumer Finances from the Federal Reserve.

About the Luxury Institute (www.LuxuryInstitute.com)

The Luxury Institute is the uniquely independent and impartial ratings and research institution that is the trusted and respected voice of the high net-worth consumer. The Institute provides a portfolio of proprietary publications, research and consulting services that guide and educate high net-worth individuals and the companies that cater to them on leading edge trends, high net-worth consumer rankings and ratings of luxury brands, and best practices. The Luxury Institute also operates LuxuryBoard.com, the world’s first global, membership-based online community for luxury goods and services executives, professionals and entrepreneurs.

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Young, Wealthy & Going Wireless: Youngest and Wealthiest Take Advantage of 3G

Posted in Internet/Web, Press Releases, Social Media, WealthSurvey

NEW YORK, NY, Feb 26, 2009

Even in a downturn, the wealthy are eagerly adopting the latest in mobile device functionality on smart phones like the BlackBerry and iPhone, according to the Luxury Institute’s just released WealthSurvey: The Wealthy & Mobile Devices — Evolving Uses.

“Luxury advertisers and marketers should be aware that 3G devices are quickly gaining traction as ways to reach high net-worth individuals, especially the youngest and the wealthiest. Mobile devices will be an important component of the luxury experience,” says Milton Pedraza, CEO of the Luxury Institute, which surveyed wealthy consumers from households with average income of $332,000 and average net-worth of $3.3 million on their use of mobile devices.

Checking weather forecasts (68 percent), getting driving directions and finding nearby businesses (both 58 percent) are the top three Internet activities of wealthy individuals on their mobile devices.

Also popular are getting financial market updates (46 percent), finding movie show times and sports scores (45 percent), and receiving traffic updates (42 percent).

Higher levels of wealth and income tend to suggest a greater embrace for all of the functionality afforded on today’s smart phones. Individuals worth at least $5 million are twice as likely as those below this threshold to play games and watch or listen to downloaded content. Sixty percent of those 44 and younger send and receive picture messages, compared to just 31 percent of those 55 and older; 48 percent surf the Web on their smart phones and mobile devices compared to 26 percent of those 55 and up. Eighteen percent of the wealthy have used professional networking site LinkedIn on their mobile devices, making it the most utilized networking application for mobile devices. Instant messaging broadcaster Twitter on the mobile scores a pang of recognition from 23 percent of wealthy users.

Among wealthy mobile device users who are members of at least one social networking community, Facebook and MySpace are also the two most popular mobile sites, with two-thirds of wealthy social networkers saying that they’ve accessed both sites from their mobiles — and 39 percent say that they access these sites at least once a day.

“Just as the Internet upended the retail world as a whole in the late 1990s, today it is mobile devices that are proving to be a powerful and evolving medium that enhances connectivity and promotes commerce,” says Pedraza.

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