Nearly eight in ten affluent consumers have at least one social networking profile, usually on Facebook, and they are using social websites to gather information to make purchasing decisions, according to the latest research conducted by Unity Marketing, www.diamonds.net reports.
From the marketers' point of view, social networking websites seem to be the logical place to close sales; however, Unity Marketing concluded that this concept is out of sync with consumer actions.
Pam Danziger, the president of Unity Marketing, said, "Smart marketers will tap the interactivity of these sites to reach out to affluent consumers, ask for their input and really listen to what these consumers need in order to decide to make a purchase."
Danziger published an in-depth report on how high-income consumers use social media and found that about half of affluents have used a social media site to connect with a brand where they can view new products or make public comment. However, only one in four have "friended" a luxury brand and affluents are more likely to use social media to look at brands than to commit to a relationship with them.
"The findings of our research are clear. Social media is most valuable to luxury marketers as a way to listen to their customers, not about finding another channel through which to sell to them," said Danziger. "Luxury brands can't afford to be deaf to what customers are saying."
As for the future of luxury brands on social media websites, Danziger advised, "Building and maintaining a relationship with your affluent customers is critical. Brands need to think of the social networking aspect of their own websites. They don't need to have a Facebook page to 'friend' an affluent shopper. Brands can friend their customers through positive and supportive online interaction on the company's primary website."
In the survey, the average age of respondents was 46 years old and the average household income was $239,300. Nearly 20 percent of the affluents polled were classified as "ultra-affluents," or the top 2 percent of U.S. households, which have incomes of $250,000 and higher. Virtually all of the respondents said they access the Internet for personal use, including shopping. In addition, nearly 80 percent of affluents are social media users.
Social networking shopping websites have a great future ahead as they continue to attract the young and affluent shopper, according to Unity Marketing, www.diamonds net further says. The social shopping website www.woot.com, for example, engages young affluent shoppers, encourages them to check back daily for special deals on luxury goods and creates an enjoyable experience, according to the research firm.
Quick action, limited access and value pricing are all significant components of targeting the young affluents, said Pam Danziger, president of Unity Marketing. Social shopping websites "offer the thrill of the hunt, the challenge of visiting time and again until the perfect item is found, and the satisfaction of landing a deal. Plus they are destinations of choice for the smart, savvy shopper. It is no wonder these sites are so popular among young affluents," Danziger explained.
In Unity Marketing's recent study, "How the Affluent Luxury Consumer Uses the Internet and Social Media," one in three of the affluents surveyed, whose average income was $239,300, had visited a social shopping site during the past three months. Social shopping websites were most popular among young affluent consumers under age 45, with 43 percent of these individuals utilizing social shopping sites, compared with 33 percent of all affluents.
Social shopping is a rapidly growing trend. Affluent shoppers’ use of social shopping rose from only 7 percent participation in 2007 to 33 percent in 2010. Unity Marketing found that the most popular social shopping websites were Woot, Gilt.com, Hautelook.com and RueLaLa.com.
