Everyone wants to land the well-to-do customer – especially if you are a top luxury brand. To many, affluent customers seem elusive and a bit ambiguous. But in reality, they’re like the rest of us – just motivated by slightly different things, especially when it comes to travel and hospitality. Here are some things to consider:
Who Are They?
The affluent market cannot be seen as one homogeneous target. There are tiers within affuence and varying demographics within those tiers. Consider:
- Affluent: $100,000 – $1 million
- Millionaire: $1 million – $5 million
- Multi-millionaires: $5 million – $25 million
And age is just a number. Many think of the affluent market as mostly Baby Boomers, but they’re only a small portion of the market. In fact, according to MarketingCharts.com ,Gen X millionaires (age 33-52) have a higher net worth than boomer or millennials. Plus, millennials are also growing their wealth at a faster rate than their parents and are more interested in luxury purchases in the near future.
Location isn’t a giveaway anymore either. Besides NYC and LA, the affluent of all ages live across the country in a variety of places like Silicon Valley, the Beltway and the Silicon Forest.
What motivates the affluent to buy? According to AdWeek, household income is more of a driver of luxury purchases than net worth. And when household income is high, the affluent want to display their wealth. They also pursue quality and, just like the rest of us, they expect to get what they pay for. They’re willing to pay more for something that is made well and will stand the test of time.
And when they are hooked on your product, expect them to stay hooked. They’re loyal to brands they love because, after all, price is never a key driver.
Overall consumption of print, digital, broadcast and other media is not significantly different from the rest of us. And they rely heavily on referrals. The one key differentiator is that they are focused on experiences that speak to their own interests and passions. So figure out their interests, position your product, and generate some referrals.