NEW YORK, July 15, 2014 /PRNewswire/ -- Wealth-X's Luxury Industry Sentiment Index (LISI) fell by 14% from its level in the previous quarter, but the latest edition of the Wealth-X Luxury Sentiment Survey released today shows that brand executives see experiential marketing targeted at ultra high net worth (UHNW) clients through events as a valuable tool for successful customer engagement and retention.
The drop in the LISI is due to uncertainties about global macro-economic stability and future demand, making survey participants more cautious in their outlook.
Although organizing events is seen as a key strategy to boost business amidst this economic uncertainty, nearly 40% of the survey's respondents do not calculate the return on investment (ROI) of their events. However, among those who did, 72% found that the ROI of their events was higher than that of other marketing initiatives.
Other key findings from the report are:
- More than 80% of luxury brands executives say they regularly organize events specifically for UHNW clients, to attract and retain customers in this wealth segment,
- 66% of respondents said they organize between one and four events annually;
- For nearly 50% of respondents, events were primarily used to extend their brand's luxury client base and build loyalty with their existing customers;
- 52% expect to hold events during the coming year in North America, 49% in Europe and 35% in Asia;
- Product displays were considered the most successful types of events by 29% of the respondents, followed by product launches at 26%;
- 35% of respondents typically invite more than 50 guests to their events, and guests were either current clients or potential new clients from referrals; and
- The highest-rated invitation method was personalized invitations by direct mail campaign. For 34% of respondents, this method yielded the highest returns.
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)