Wealth-X's Luxury Industry Sentiment Index Slides 14%, But Survey Shows Experiential Marketing Through Events Remains A Key Tool For UHNW Engagement

Jul 15, 2014, 23:45 ET from Wealth-X

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.

Download the report at http://www.wealthx.com/articles/2014/latest-edition-of-wealth-x-luxury-sentiment-survey-released/

About Wealth-X
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)