Experiential Marketing Crucial For Luxury Brands To Connect With UHNW Clients, Wealth-X Survey Shows
LONDON, April 16, 2014 /PRNewswire/ -- More than 90% of luxury executives polled in a Q2 2014 survey by Wealth-X, the world's leading ultra high net worth (UHNW) intelligence and prospecting firm, said that experiential marketing is crucial to their brand's ability to connect with ultra wealthy clients, not digital marketing, which they see as a vehicle for brand awareness.
Nearly 84% said that they use digital marketing to raise their brand's visibility, not to increase sales or the number of clients, and a further 16% did not use digital marketing at all.
These are some of the key findings in the Wealth-X Luxury Sentiment Survey, which looked at how luxury brands employ marketing strategies to target UHNW clients.
The survey also showed that:
- 68% of respondents felt that UHNW clients do not respond to digital marketing campaigns.
- 53% did not use any form of social media as part of their marketing strategies.
- 64% said that more than 50% of their total marketing budget was used to target UHNW clients specifically.
- 11% said that over 75% of their revenue came from UHNW individuals.
The industry overall appears slightly less optimistic with the Wealth-X Luxury Industry Sentiment Index (LISI) falling to 97.6 based on expectations for the second quarter of 2014, compared to a score of 100 in the first quarter. Almost 75% of respondents felt that revenue would increase in Q2 2014, as opposed to 78% in Q1 2014. About 6% expect their brand's market share to decrease in Q2 2014, while none had in the previous survey in January this year.
The second edition of this survey, which was conducted in March 2014, polled global senior luxury executives from various luxury sub-sectors.
Wealth-X CEO Mykolas Rambus commented: "The results of this survey reinforce Wealth-X's view that the most effective way to reach UHNW clients is through bespoke and experiential marketing. Getting to know and understand UHNW clients as individuals is the best method of establishing long-term business relationships."
For the survey report, visit http://www.wealthx.com/wp-content/uploads/2014/04/Wealth-X-Luxury-Sentiment-Survey-Vol-21.pdf
Wealth-X is the world's leading ultra high net worth (UHNW) intelligence and prospecting firm with the largest collection of curated research on UHNW individuals, defined as those with net assets of US$30 million and above. Headquartered in Singapore, it has 13 offices on five continents. (www.wealthx.com)