Social media has created a new world for luxury products.
Social media users come from different backgrounds and age groups, and they’re all hungry for high-quality, expensive products.
We’ll discuss how to leverage these changes by analyzing:
- How our agency uses social media for luxury brands to decrease CACs and skyrocket ROAS
- Specific examples across the luxury market
- The importance of digital presence in maintaining exclusivity while being accessible
Let’s begin.
TL;DR:
- Social Media and Luxury Brands: Leveraging social media can significantly decrease Customer Acquisition Costs (CAC) and increase Return on Ad Spend (ROAS) for luxury brands.
- Understanding Your Audience: Essential to tailor marketing strategies; notable shift towards younger consumers (Gen Z and Millennials) with high earnings but not yet rich, valuing inclusivity and style over exclusivity based on wealth.
- Digital Presence: Key for maintaining brand exclusivity while ensuring accessibility; platforms like Instagram, Pinterest, TikTok, and YouTube are vital for engaging with target demographics.
- Content Strategy: Prioritize quality over quantity, focusing on high-value, authentic, and engaging content that reflects luxury and exclusivity. User-generated content (UGC), educational materials, and behind-the-scenes looks are effective.
- Execution Tactics: Include personalization, engagement, exclusive offers, and leveraging technology for enhanced customer interaction and service.
- Amplification Strategies: Combine targeted advertising with influencer collaborations to extend reach and engagement, emphasizing storytelling and brand heritage.
- Best Practices: Emphasize authentic storytelling, a personal touch in interactions, consistent brand messaging, a balance of exclusivity with inclusivity, and ethical considerations to maintain brand integrity.
- Call to Action: Encourages luxury brands to innovate and adapt social media strategies based on data-driven insights for success, offering a strategy call with the agency to skyrocket ROAS.
1. Understand the High-End Audience
Luxury brand marketing has been changing in recent decades because the world in which luxury brands exist has changed.
That’s why understanding your target audience is essential.
Insider tip: It’s the first step we take at inBeat Agency, even before goal setting.
And it helped us create awesome campaigns for different luxury companies (but more on that below).
The rise of social media platforms has changed the landscape in terms of:
- Demographics: You now have younger luxury consumers from around the globe and across income levels.
- Values: The luxury market has different values and expectations, moving from exclusion based on financial standards to inclusion based on a shared sense of style.
1.1. Target Audience Demographics
Insider tip: At inBeat, we noticed Gen Z's and Millennials' growing influence in the luxury goods market.
These people are especially from the HENRY category (High Earners, Not Rich Yet).
That’s important because luxury marketing strategies have traditionally been tailored towards an older demographic.
Overlooking the potential of younger, affluent consumers is a massive mistake.
1.2. Target Audience Values
Don’t just look at demographics; focus on values.
This younger demographic is not just spending but looking for luxury social experiences that resonate with their values and lifestyle.
They seek aspirational content that aligns with their desire for an exclusive lifestyle but with a twist reflecting their identity and ethical standards.
Remember: Social media channels become a critical touchpoint, offering a platform for luxury brands to engage with these younger audiences through social media content that is authentic, engaging, and in line with their aspirational yet value-driven mindset.
Look at the video below:
Rolex addresses a target audience of explorers, who tend to be younger and more daring.
At inBeat, we worked to promote more expensive brands, like the cold-press juicer company Hurom.
We also noticed their target is made of health-conscious young people who prefer to invest more in their well-being.
That’s why we produced the ad below, which oozes style and elegance while still providing educational content.
Side note: The strategy we crafted for Hurom helped us decrease their CPAs by 65% while increasing ROAS by 2.5x.
That brings us to the next point.
We’ll give you the step-by-step marketing strategy we use for luxury brands below.
Feel free to copy and implement it today.
2. Set Clear Objectives
When setting objectives for your luxury brand's social media strategy, you must consider your audience segments.
A comprehensive campaign that addresses the entire sales funnel should strike a balance between brand awareness, customer engagement, and direct sales goals.
Insider tip: We advise focusing on one goal and market segment at a time.
But how do you select these objectives?
You need to make an informed choice based on a deep understanding of:
- Your luxury market dynamics
- Your brand's unique position within the luxury goods market
To get this data:
- Delve into the analytics provided by your social media platforms to understand your potential customers' engagement rates and preferences.
- Social listening and sentiment analysis can offer deep insights into what luxury consumers expect from your brand.
- Use information from your sales department.
Remember: Each objective will require a different channel and type of content.
For example, we work with the beauty brand Native to produce posh UGC ads for their new product releases:
The images are very high-quality and highly edited because the brand wants to create desire for its new products.
3. Choose the Right Platforms for Luxury Brands
Each social media channel has strengths and weaknesses. So, when a new brand comes to us, we always analyze what fits that particular scenario, target audience, and goals.
3.1. Instagram Is Great
Instagram is a premier visual platform for luxury fashion and beauty brands.
Its rich visual interface is perfect for showcasing the high-quality imagery that luxury brands are known for.
Insider tip: Use Instagram Reels to bring dynamic storytelling into your strategy, offering captivating behind-the-scenes looks and narratives that resonate with a broad audience.
This feature is amazing for displaying scene content, providing an exclusive peek into the craftsmanship and heritage that define luxury items.
However, Instagram has a slew of available content formats, like Stories, Posts, and Reels.
Consider which ones fit your content marketing strategy best so you can have a multi-pronged approach.
That’s why we chose this social channel for Native:
3.2. Pinterest
Pinterest is a unique and powerful platform for luxury brands looking to inspire and captivate their audience.
Known for its highly visual interface and aspirational content, Pinterest is an expansive digital mood board, making it ideal for showcasing the aesthetic and lifestyle of luxury goods.
The platform's structure encourages users to discover and save ideas, which means content related to luxury lifestyle, fashion, beauty, and home decor can have a prolonged life span and continually inspire new audiences.
Like so:
For luxury brands, Pinterest is a valuable tool for driving content marketing strategies that focus on the visual appeal and storytelling aspect of their products.
High-quality, pin-worthy images highlighting the superior quality and design of luxury fashion and beauty brands can generate significant engagement and direct traffic to your website, enhancing brand awareness and potential sales opportunities.
Insider tip: Leverage Pinterest’s search and recommendation system because it offers a unique advantage.
By optimizing your pins with relevant keywords and high-quality images, you can increase your visibility on the platform and reach potential customers actively searching for luxury goods and inspiration.
This targeted reach makes Pinterest an effective platform for influencing purchasing decisions, which is why it produces massive revenue.
3.3. TikTok
TikTok offers a dynamic and youthful platform for brands aiming to engage with a younger, trend-conscious demographic.
It's a space where creativity thrives, and the potential for user-generated content and influencer marketing is vast.
Luxury brands can leverage TikTok to create endless content that has the potential to go viral, thus reaching aspirational customers in a more relaxed, engaging, and interactive manner.
The platform's emphasis on short, engaging videos makes it an excellent choice for brands looking to inject a sense of fun and creativity into their luxury offerings.
One of our clients, the beauty brand Prose, uses TikTok frequently:
They want to address a younger demographic who is very conscious about their looks.
In fact, Gen Z and Millennials overspend on beauty products.
Insider tip: Before creating campaigns for Prose, we did our research.
We discovered that Gen Z is embracing its natural curls more than any other generation.
In fact, more Gen Z-ers identify their hair as curly or try to create natural curls.
That’s why we suggested TikTok as a great social channel for Prose.
Remember: We started with audience research, which is what you should do for your campaign.
3.4. YouTube
YouTube is the go-to platform for longer-form content, where brands can delve deeper into the stories behind their products and heritage.
It's an ideal space for educational content that can elevate the perceived value of your brand by highlighting the craftsmanship, history, and exclusivity of your products.
YouTube's global reach and diverse audience also make it a valuable tool for luxury brands looking to expand their influence and connect with potential customers on a deeper, more informative level.
Christian Dior also uses YouTube to tell stories while captivating its audience with glowing, luxury imagery:
Choosing the Right Platforms for Your High-End Product
When selecting social platforms for your luxury brand, consider where your target markets are most active and the type of content that resonates with them.
Each platform offers unique features and audience demographics, so choose those that align with your brand's image and the story you want to tell.
Insider tip: Always ensure that your presence on these platforms is cohesive and reflects the luxury your brand stands for.
Your strategy should be sophisticated and consistent, embodying the luxury lifestyle at every touchpoint.
4. Content Strategy for Premium Brands
Now that you’ve selected the right channel, it’s time to build your content strategy.
Quality Over Quantity
Focus on high-value content and prioritize quality.
This approach aligns with the expectations of luxury consumers.
They seek content that reflects the exclusivity and craftsmanship of luxury goods.
Insider story: When beauty brand Native came to us, they specifically requested content creators who could produce polished content regularly.
So, while raw content has a place in many brands’ social media campaigns, luxury brands like yours should focus on elegance.
Types of Content for Luxury Brands
The type of content you’ll choose for your campaign should depend on your goals and target audience.
Let’s review the most common:
- User-Generated Content (UGC): UGC enhances authenticity. This strategy builds community and trust because it shows real people enjoying your luxury products. It works best for Gen Z and people from lower income brackets who value quality over quantity.
Insider tip: UGC works extremely well for most of our clients because it reduces ad fatigue and CPAs.
It can also go viral quickly.
Our campaign for Nordstrom & Wildfang’s non-binary clothing line was a resounding success – the 160 content assets produced by our influencers generated 4.1 million impressions.
- Shoppable posts: These posts make it easy for potential customers to buy, so use them to streamline purchasing and enhance the shopping experience on social platforms.
- Educational content: Educational content doesn’t just inform; it engages and adds depth to your brand story. Share insights about your brand's heritage and craftsmanship to appeal to consumers who value the history and quality behind luxury goods.
- Behind-the-scenes content: Show the making of your luxury products to reveal the effort and quality that go into each item. It fosters appreciation and a deeper connection with your brand. Besides, this type of content can also go viral quickly.
- Influencer collaborations: Collaborate with influencers who align with your brand. They can create content that resonates with your target audience and extend your reach. Besides, you can leverage the influencers’ tight-knit connections with their target audience.
Content Calendar and Strategic Timing
Plan your content with a content calendar to ensure consistency and align content with key dates and events.
Pro tip: Strategic timing maximizes engagement.
It ensures your content reaches your audience when they are most receptive.
5. Choose Correct Execution Tactics for Luxury Product Promotion
Execution is as important as the message you send.
We use the following techniques when promoting luxury brands:
5.1. Engagement and Personalization
- Customer influencers: Use customer influencers to showcase social proof. Sharing their experiences with your brand adds authenticity and influences potential customers positively.
- Engaging with enthusiasts: Interact with luxury brand enthusiasts by responding to comments and direct messages. This engagement builds a loyal community, proving you value their interest and support.
Rolex uses this tactic well because it also ties it to its audience’s values:
5.2. Monetization and Exclusive Offers
- Exclusive content for monetization: Create exclusive content for your followers, such as premium access to certain products or information. This strategy adds value to following your brand on social media.
- Special offers for followers: Provide special offers and services to your social media followers. These exclusives encourage more people to follow and engage with your brand. Plus, you foster a sense of belonging to an elite group.
5.3. Exclusivity and Scarcity Approach
Another good tactic is to adopt an exclusivity and scarcity approach because it:
- Enhances the perceived value of your offerings.
- Triggers a sense of urgency among potential buyers.
For example, you can offer limited edition products or time-bound services.
British luxury fashion brand Burberry offers a neat example by tying one of its products to a special occasion (in this case, Valentine’s Day):
This connection creates scarcity and urgency, even without a practical discount or special offer.
5.4. Leveraging Technology
- AI and chat features: Implement AI and chat features for quick responses to enhance customer service on platforms like Instagram. When you provide immediate assistance, you improve user experience, which is essential to create loyal customers.
- Social search optimization: Optimize your content for social search using relevant keywords and hashtags. This tactic increases your visibility, helping more people discover your luxury brand.
6. Amplification Strategies for High-End Brands
After creating your content, amplification is essential.
You want your message to reach as many people as possible while still having a precise targeting strategy.
6.1. Advertising and Influencer Collaborations
Running targeted social media ads is a fundamental tactic for luxury brands aiming to reach their discerning target markets.
These ads, when finely tuned to the preferences and behaviors of the luxury consumer, can significantly boost brand visibility and drive engagement.
On the other hand, engaging with inspiring influencers presents an opportunity to extend the brand's reach organically.
Insider tip: That’s why we at inBeat Agency blend both.
We discovered that UGC ads created by influencers are more high-quality, well-targeted, and reach a broader audience.
Remember to navigate influencer collaborations with finesse, ensuring that these partnerships truly resonate with your brand's exclusive lifestyle and values.
Don’t rely solely on influencer reach, which can dilute your brand's perception of exclusivity and luxury.
6.2. Storytelling and Brand Heritage
The art of visual social storytelling, particularly when it centers around a brand's heritage, is a powerful tool in the amplification strategy of luxury brands.
This approach involves crafting aspirational content that:
- Showcases the products' superior quality and design.
- Weaves in the rich legacy and craftsmanship behind your brand.
Such content captivates the audience and deepens their connection with the brand.
Basically, you’re instilling a sense of pride and belonging among luxury consumers who value the product and the heritage it represents.
This strategic emphasis on narrating the brand's legacy through social media platforms enables luxury brands like Louis Vuitton to stand out in a crowded market, creating a lasting impression on potential customers and reinforcing the brand's position in the luxury lifestyle.
5 Best Practices for Luxury Social Media
Now that you’ve read so far, you know the data-driven tactics that helped inBeat’s luxury clients decrease their CPAs and increase their ROAS.
Follow our best practices below to enhance your social content even more.
1. Authentic Storytelling over Copy-Paste Content
In luxury social media, authentic storytelling markedly outweighs the impact of generic, copy-paste content.
Remember: Embracing user-generated content, especially ads featuring influencers who genuinely resonate with the brand's ethos, can significantly amplify this authenticity.
This approach showcases real-life luxury experiences and reinforces the brand's narrative through the lens of its most passionate advocates.
2. Prioritize Personal Touch in Every Interaction
Luxury brands like yours must ensure a personal touch in every customer interaction.
This commitment to personalized communication elevates the customer service experience, making each social media user feel valued and understood.
Consider personalized responses post-purchase or tailor-made recommendations via direct messaging.
This level of attentiveness fortifies your luxury brand's reputation for unparalleled service.
3. Consistency in Visual and Textual Brand Messaging
Maintaining consistency across visual and textual brand messaging is paramount.
This coherence ensures that every piece of content unmistakably reflects the brand's identity and values.
Consistency helps build brand recognition and trust among luxury consumers, reinforcing your company's narrative across all social channels.
4. Balancing Exclusivity with Inclusivity on Public Platforms
Striking a balance between exclusivity and inclusivity is a delicate act for luxury brands on public social media platforms.
While maintaining an air of exclusivity is essential to uphold your brand's allure, inclusivity should not be overlooked.
You can achieve this balance by crafting aspirational content that appeals to a broad audience while still catering to the exclusive lifestyle of their core clientele.
5. Ethical Considerations and Maintaining Brand Integrity
You must navigate social media with a strong ethical compass, ensuring that all content aligns with ethical standards and maintains brand integrity.
This includes transparent advertising practices, respectful engagement with diverse audiences, and a sustainability and social responsibility commitment.
Upholding these ethical standards enhances your reputation and resonates with today's socially conscious luxury consumers.
Kickstart Your Luxury Brand Social Media Campaign
As you can see, social media plays a crucial role in luxury brand building, sales, and customer loyalty.
However, you need to continuously innovate and adapt your social media strategies to a diverse audience of consumers.
More importantly, you must make data-based decisions.
Identify essential trends in your niche to create a successful campaign, just like we helped Prose scale its TikTok efforts because we discovered Gen Z-ers’ love for natural curls.
But all this analysis takes time.
If you want to streamline your campaign, schedule a free strategy call with us, and we’ll create a personalized plan that skyrockets your ROAS.
