Global influencer marketing platform and analytics company, Traackr, has launched its first White Paper, which identifies nine challenges for luxury brands.
The White Paper aims to help luxury brands by addressing the nine critical considerations that challenge the sector’s traditional marketing models and impede the vast commercial opportunity influencer marketing offers to chief marketing officers.
The report evaluates prior and current marketing trends, looking into how effective and relevant these are for today’s luxury business. Further, it outlines the new era of relationships and purchase behaviour; where convenience is being redefined by technology and is taking luxury customer expectations to another level.
Traditionally, the luxury sector has relied heavily on costly marketing methods such as print and TV campaigns, the creation of expensive online brand experiences and the investment in vast global distribution networks to achieve personalisation, exclusivity and the holy grail of ‘infinite proximity’. Yet despite so much activity, true engagement and impact remain difficult to achieve.
Relationships have always been central to successful luxury brand marketing. The increase in online sales, digital media — and social media in particular –, are changing the way customers spend their time, shop, build and maintain relationships. It also alters how they expect to engage with brands.
Traackr believes that of all (digital) marketing practices, Influencer Marketing has emerged as one of the most promising and viable means of driving consumer purchase behaviour and generating authentic relationships and impact within the luxury business today.
According to Econsultancy’s report on the rise of influencers in fashion and beauty , 59% of decision makers say Influencer Marketing budgets will increase this year. Having a strategy with the tools and processes to optimize this investment should be a priority.
While relationships have always been fundamental to luxury marketing, “influencer marketing” is raising a whole new set of challenges and presents unrivalled opportunity for the luxury sector to engage key communities in a meaningful win-win exchange and create purpose.
In brief Traackr’s White Paper evaluates the following subjects:
- The relative importance of reach, resonance and relevance with reference to generating the right content and accurate brand association.
- How CMOs must look beyond luxury to broader brand associated subjects to increase impact and relevance
- How selecting the right influencers is about identifying affinity and conviction and giving a voice and trust to influencers brands co-create content with
- How luxury brands can scale impact whilst retaining exclusivity
- How the paid for model fails to deliver organic endorsements or value
- How to retain authenticity through UGC
- How to balance and achieve global reach through local influencer activities
- The critical role technology plays in ensuring and maintaining a high quality influencer marketing program, high quality engagement and relationship management
Nicolas Chabot, VP EMEA, Traackr, comments: “The buoyant global luxury market continues to evolve apace with a rise in new competition and new platforms and methodologies for engaging the increasingly elusiveluxury customer.”
Regarding the opportunity to drive the business, he continued. “What’s exciting is that Influencer Marketing presents modern CMOs with the most compelling strategic and cost effective tool available today to engage and build authentic relationships directly with these niche specialist audiences and to harness influence over their purchase behaviour.”
In brief the nine challenges identified are:
- Reach or relevance? Selecting the right influencers
- Connecting with audiences beyond luxury
- Personality conflicts
- Scaling exclusivity
- Paying for praise?
- Letting go… or not?
- Status symbol and privacy in the social age
- Locally global
- The quest for perfection and craft
Traackr’s Luxury White Paper is available for free download on its website.