Social Media: Male versus Female
Although you might love to create awesome videos for YouTube, if you are targeting women, you might simply be wasting precious time and money. The same can be said about Pinterest if you are targeting men.
Think of it this way: guys often hang-out at a local pub watching a baseball/football/hockey/soccer game with a beer in hand, while girls love to shop all day then dress up to meet girlfriends for a few martinis at a trendy lounge. Of course, there are exceptions, but as a general rule, men and women are just different, and they, usually, don't hang out at the same places.
The same can be said about social media. If your luxury brand targets one gender, you have to pay attention to the demographics of the social network before you decide to jump all in and spend a lot of time and money. Being good at social media can be expensive, so it's important to invest wisely.
This post is inspired by an email chain with one of our clients who simply insist that they must have a strong YouTube presence because "everyone in the industry is there" and "that is what we need to do". About the brand: they target women over 30 years old with an income above $100,000.
The series of videos they have produced so far, against our recommendations, are not "must-see" videos. They don't show the brand at its finest and are simply boring to watch therefore they barely attract any attention from anyone. In fact, not a single video created and published in the last six months has been viewed more than 50 times! With more than 1 billion unique users who visit YouTube each month, and with over 6 billion hours of videos watched each month on YouTube, this should be a sign that
1- no one is interested in the video series;
2- continuing this path will incurs unnecessary costs;
3- since 78% of YouTube's audience is male - only 23% female - they should simply focus their attention on other social networks. Those who are visited by females and who will bring in targeted website traffic aka Pinterest, Facebook, Instagram and Twitter.
Yes they could spend thousands of dollars to create high-end videos, but why not invest in Pinterest a mere fraction of the costs to grow their presence on Pinterest, a social network that is mostly all female (68%) and that is simply awesome at generating traffic to a website. We can only advice and hope they read this blog post ;)
Naming a New Luxury Brand
One of the first things that comes to mind when creating a new luxury brand is "What's in the name?" Some brands opt to create a new word such as RueLaLa, use the founder's name such as Chanel or pick a combination of words that is SEO ready, such as Agence Luxury.
Since we are currently in the process of picking the name for a new luxury brand, we stumbled upon this great infographic and we simply wanted to share.
Naming a new luxury brand requires a lot of brainstorming sessions but one thing is for sure, it can not be taken lightly. The name is often the first impression, and often the last thing seen by a potential new client. If you want a few more heads to help you throughout your brainstorm sessions, give us a shout.
Learning Luxury Craftsmanship from Mayan Women
As part of my Pan-American road trip, I recently spent six weeks in Guatemala, a country filled with a rich Mayan culture. Although I truly enjoyed visiting the impressive ruins of Tikal, the lovely island-city of Flores and the vibrant colonial town of Antigua, my heart belongs to Lake Atitlan.
As soon as we arrived in San Pedro, a small Mayan community nestled between the San Pedro volcano and Lake Atitlan, I was mesmerized by the sheer beauty of the local Mayan women. With their traditional huipil or blouse, corte or skirt, sash and shawl, these women shined in their bright colors especially when compared to my "made-in-China" shorts and blouse. It noticed luxury craftsmanship at its best.
I wanted to learn more about their culture therefore I spent some time with a local woman in a nearby village learning how to weave the traditional Mayan way. After learning how to weave a scarf, I learned something that shocked me: luxury brands should learn from Mayans as they hold the key to luxury goods.
Why?
Because these women put their heart and soul into every piece they create.
Because everything is handmade.
Because each piece will hold up to the test of time, lasting more than a century.
Because each piece is unique, hand-crafted one at a time.
Because most pieces are bespoke; guidelines given by the buyer.
Because service was done with a smile and often with a laugh.
Because you felt like a member of their community when you entered a small boutique.
And because you made a new friend.
Luxury brands are often caught up in the "snobbiest" of luxury and forget the true essence of the word. Luxury is not about spending the most money for a marketing campaign; it's about creating a product that is spectacular in a niche.
Think of Coco Chanel,the woman, and not just the brand she left behind.
The Costs of Owning a Superyacht
One of the most common question I get asked about my time working aboard superyacht is "What are the costs associated with owning a superyacht?" Since no two superyachts are the same and since no two superyacht owners request the same from their yacht and crew, the answer is often hard to give out.
If the superyacht is moved every day from one destination to the next, your annual fuel bill might brake the million dollar mark, but if you plan on keeping it docked in front of your villa to be taken out on weekends only, then fuel costs might not be an issue.
Since the question seems to be asked a lot by those who are simply curious or those who are seriously thinking about splurging on a shinny new white boat, the people at Luxury Yacht Group, an agency that provides creative solutions for yacht management, crew placement, sales and charter, have put together the Luxury Yacht Operating Cost Calculator.
Using this great tool, I decided to calculate the average costs of a 150' superyacht with 9 crew members and a 12 week charter season. Here are the results:
| Engine Costs | ||
| Fuel | $ | 83,222 |
| Heat Exchange | $ | 4,091 |
| Rebuild Costs | $ | 69,168 |
| Service Costs | $ | 23,323 |
| Total | $ | 179,804 |
| Generator Costs | ||
| Fuel | $ | 65,047 |
| Service Costs | $ | 25,202 |
| Rebuild Costs | $ | 13,500 |
| Total | $ | 103,749 |
| Maintenance | ||
| Deck | $ | 7,599 |
| Interior | $ | 29,378 |
| Paint | $ | 97,365 |
| Onboard Tenders | $ | 9,563 |
| Water Maker | $ | 2,113 |
| Total | $ | 146,018 |
| Hydraulics | ||
| Bow Thrusters | $ | 5,357 |
| Active Roll Stabilization | $ | 20,357 |
| Total | $ | 25,714 |
| Dockage and Transport | ||
| Dockage | $ | 199,125 |
| Dockage while owner is aboard | $ | 42,000 |
| Ocean Transport | $ | 300,000 |
| Total | $ | 541,125 |
| Crew Costs | ||
| Salaries | Annual | |
| Second Officer/OOW | $ | 48,000 |
| Deckhand | $ | 36,000 |
| Chief Engineer | $ | 84,000 |
| Chief Stewardess | $ | 66,000 |
| Stewardess | $ | 67,200 |
| Chef | $ | 60,000 |
| Deckhand / Engineer | $ | 38,400 |
| Midgrade Captain | $ | 120,000 |
| Total | $ | 519,600 |
| Crew Payroll Services | $ | 3,600 |
| Crew Medical | $ | 12,600 |
| Crew Liability | $ | 3,300 |
| Travel | $ | 15,300 |
| Food | $ | 57,488 |
| Uniform | $ | 24,750 |
| Training | $ | 4,500 |
| Day workers | $ | 23,310 |
| Total | $ | 664,448 |
| Communications | ||
| Wireless Internet Card | $ | 1,344 |
| Satelite Data Link | $ | 54,000 |
| Satelite TV | $ | 1,440 |
| Crew Cellular | $ | 1,095 |
| Navigation | $ | 3,808 |
| Total | $ | 61,687 |
| Guest Costs | ||
| Dining and Spirits | $ | 42,000 |
| Entertainment | $ | 5,400 |
| Water Sports | $ | 9,600 |
| Total | $ | 57,000 |
| Administration | ||
| $ | 24,545 | |
| Office Supplies | $ | 16,821 |
| ISM & ISPS/ ISM Mini | $ | 6,300 |
| Total | $ | 47,666 |
| Charter Revenue | ||
| Sales (12 weeks at $200,000/week) | $ | 2,400,000 |
| Charter Broker Fees - Retail Broker | -$ | 360,000 |
| Charter Agent Fees - Central Agent | -$ | 120,000 |
| Total Net Income | $ | 1,920,000 |
| TOTAL ANNUAL EXPENSES | $ | 1,827,543 |
| Annual Profit/Loss | $ | 92,457 |
Obviously, the costs of owning a superyacht vary widely on the choices you make, but one think is sure, you can significantly offset the costs by chartering it out for a minimum of 12 weeks a year. One way to stand out from the fleet of superyacht available for charter is to brand your superyacht - build a website, publish a great blog and be social. Need an example, check our MY Starfire's digital success.
The Elements of Content Marketing
Just what exactly constitutes effective content marketing in the luxury market? There are several key elements that need to be in place in order to guarantee successful results for your luxury brand.
- First and foremost, you need to develop a content strategy. This is the core element upon which everything else depends. Your strategy needs to be well thought-out in order to be a firm foundation for your content marketing project.
- Define the exact format that you are going to use. Will it be in the form of articles, a webinar, or even a game or an app? There are several options from which to choose so make sure that you select the most appropriate option(s) for your needs and strategy.
- You then need to conduct luxury research and determine which content type is best suited to your target audience. Luxury marketing could constitute anything from reviews to quizzes.
- Use various social and content distribution platforms to share your content. Take advantage of options such as luxury websites, popular platforms like Pinterest and Instagram, blogs, and many more.
- Critically, the key metrics need to be tracked and mapped to the specific goals you wish to achieve. Everything from brand metrics to demographic metrics needs to be monitored and analyzed to improve your luxury marketing. This ensures that you can achieve what you set out to accomplish in relation to leads, sales, members, branding, shares, etc.
- One of the most important elements of luxury content marketing is the use of sharing triggers associated with human emotions. Anything from cute and funny to shocking and sexy will work with the appropriate content but remember to stay true to your brand's core values.
- Lastly, the final element is double checking. Everything – everything – needs to be checked. This includes checking your accuracy with fact-checking and improving your marketing by checking optimization. Not to mention a whole host of other checks such as tone of voice, formatting, brand guidelines, etc.
Luxury content marketing is guaranteed to be more effective in reaching that all-important target audience once all these vital elements are in place.
Influencing with Giveaways: Separating the Myths from the Facts
Just how do social media competitions influence consumers? TAMBA conducted research with people who enter competitions in order to provide insight into the use of competitions as a marketing strategy. The results shed some interesting light on myths surrounding competitions and social media. This is what they found:
- A ‘typical’ participant in competitions is in their thirties and works full time.
- More than 60% of respondents do not have children under the age of 18. Those who do have children under 18 have one to two children.
- The vast majority of people who enter competitions are not bloggers.
- Social media was reported as the most popular platform for entering competitions, with 87% of the respondents saying they used this channel of participation.
- Facebook and Twitter are by far the most popular social media channels used for entering competitions.
- 68% of the respondents admitted to entering competitions on a daily basis.
- Interestingly, almost half of the respondents share brand content on their social pages every day.
- Competitions increase consumers’ interaction with a brand and increase brand content that is shared on social media. Importantly, competitions also significantly influence consumers’ awareness of new brands and their brand purchasing decisions.
- Competitions have a positive effect on brand perception and word-of-mouth recommendations. In fact, almost 3 out of 4 people are more likely to recommend a brand that offers giveaways and competitions.
- And the drawback? 72% of people are frustrated by unwanted spam from the brand following a competition.
These research results challenges many assumptions and myths that were previously associated with brand giveaways and competitions. It’s no longer about stay-at-home mums or bloggers. We can no longer dismiss competitions as having little significant impact on brand perception, awareness and buying decisions. In other words, luxury brands would do well to take this information into account when developing their brand strategies.
Affluent Luxury Consumer Segmentation
Not all affluent consumers are the same, but finding common characteristics that defines segments in this market can help us understand and better target this high value consumer base. Focusing on smaller homogeneous groups that think and behave in a similar fashion allows a brand to customize its offering, making them more relevant to the consumer. Nowadays, luxury is about providing a personable, customization experience to the end user.
Our friends at Agility Research and their team of data scientists and methodologists propose a new insightful segmentation solution - the Affluent Luxury Consumer Segmentation. Using data from syndicated studies conducted every quarter, they have identified four distinct affluent consumer profiles based on behaviour and psychographic attitudes in relation to purchasing luxury products from different categories.
The Affluent consumer audience can, therefore, be segmented as such:
“Exclusivity is a luxury only a premium brand can deliver.”
The Exclusivity Seeker
is a key segment for many high-end brands as they have considerable disposable income and spend liberally across multiple luxury categories. These consumers spend on luxury cosmetics and fashion and are especially likely to spend on travel. For this segment exclusivity is a luxury a premium brand can deliver. They are likely to be female, 40-49 years old, a Manager, Director, or VP in a public or private company.
“Luxury products that I buy on my travels elevate my social status.”
The Indulgent Traveler
buys luxury predominantly at airports or in cities they travel to. The travel indulger is also something of a socialite who is looking to elevate his social status by buying luxury products. He is likely to be a professional (e.g., doctor, lawyer, engineer), male , and 30-49 years of age. The Travel Indulger spends money on high-end accessories such as premium/ luxury watches and jewellery.
“ Online luxury does not phase me; I research and buy virtually.”
The Virtual Shopper
does not have an issue with luxury converging with the online world. She both researches and makes luxury purchases online. She values luxury goods for their higher quality and uniqueness. The virtual Citizen is predominantly a female professional who is 20-29 years old. Her wardrobe is likely to displays fashion pieces from Calvin Klein, Gucci, Coach, and/or Chanel.
“Luxury is great, but only at the right price online and tax-free.”
The Luxury Bargain Hunter
sees luxury goods desirable, but only at the right price. This segment goes online to search for luxury products and prefers to buy products tax free. The Luxury Bargain Hunter is likely to be a female aged 50-59, a professional, or a mid to high level manager. While they have the least spending power out of all the segments, the Luxury Bargain Hunters spend more than others on electronic gadgets and on their vehicle.
Seek a consultant at www.affluential.com to get a more comprehensive profile of each segment or to apply their unique segmentation solution to your projects.
Luxury Spotlight: Scott Eddy, Entrepreneur, Public Speaker & Consultant
A serial entrepreneur, Scott Eddy is the digital guru you can depend on to help you form lasting meaningful relationships for your business. With an enviable base of followers, he sure knows how to create and nurture relationships. Offering corporate training and consulting services for individuals and businesses, he is also a noted public speaker specializing on topics such as Entrepreneurship, Startups, Social Media, Sales, and Motivation.
According to him, “I love starting companies, so when I get an idea, and have the situation (and time) to do it, then I do it.” Presently, he owns a digital agency in Bangkok, where he has a great team, along with whom he manages what he loves to do most – connect with people.
Let’s take a look at how he began on his career as a digital nomad.
As someone who is both an entrepreneur and on a PanAmerican road trip, your blog post "What it’s like to be an entrepreneur and a serious traveler at the same time" resonated with me. You talk about using social media to connect with people in real-life throughout your travels. Any tips on how to find the right people to connect with?
Whenever I am going to a new country, before I go I always go through Twitter to see who is the most active and engaging (brands and people) I try to connect with them, and usually a good group of people reach out to me. I use Twitter for this because out of all the social media platforms, Twitter is the quickest way to connect with someone.
There has been a lot of controversies surrounding Facebook in the last year and many brands have considered shutting down their account for good. In this new Facebook era, what do you recommend to brands who are trying to build a loyal following on Facebook.
Facebook is definitely making it harder everyday. Basically I would say you 'have to' set aside a budget to do paid campaigns through Facebook, if that is against what you believe it, then I feel it will be impossible to build a huge following on there. And if you do achieve it, the way they have things set up, even if you do have a huge following, if you are not paying for 'boosts' or 'sponsored' posts, then your following will not see most of what you post anyway.
Twitter is a great way to build connections with industry peers. As someone who now has hundreds of thousands of followers on Twitter, can you give us a tip on how to build a loyal fan base?
This is exactly what I talk about when I do consulting for this industry. The first thing I recommend is to find your competitors, and see who is engaging with them, see who follows them, and follow those people. From my experience, if I follow 100 of those people, usually about 25-50% of them will follow back. And if you are doing this everyday, think about the possibilities. I say this to everyone, and I will say to you as well, Twitter is the best platform out there!!!!!
Instagram is a great way to both capture your travel and connect with others who share the same passion. What type of pictures do you find works best to inspire likes and comments from the community?
I think it depends on your following. I usually post quotes, travel pics and, of course, food pics. You have to remember, most of social media is people living vicariously through other people, so try to post unique images, things with the 'wow effect.'
Although a lot of brands tend to dismiss Google + for other social networks, Google seems keen on making it a leader. In your opinion, should brands give this network the chance it deserves?
I feel that unless you are deep into the technology, this platform is useless. I know some people have success there, but I just don't see it. I have tried a few times with zero success. If its working for you, I applaud you, but I am done with it.
Of all the social media channels you engage on, which one do you prefer and why?
I think my answer is a little obvious. I don't think anything can touch Twitter. You can connect with someone immediately, with less than 12% of all accounts are private you can see what they are talking about and who they are engaging with, and this is the place that most news agencies are getting their first reports from....so it's definitely the place to be for me!
Do you monitor your Klout score on a daily/weekly basis? Do you think this social ranking is of any real value to determine influence?
Klout is an interesting topic. While I think it is a remarkable tool, I doubt the credibility behind it. Let me give you an example, about a year ago I had a ranking of 76, at that time I had about 250-275K followers on Twitter, and less than 5K on Facebook and Instagram. Now I am much more engaging, have over 500K followers on Twitter and 20K on Facebook and 30K on Instagram (and did I mention MUCH more engaging) and now my Klout score is 72. For me, Klout is EXTREMELY frustrating and I just don't get how they get their scores.
In your opinion, which social media will lead the way in the next 5-10 years?
I think Twitter will get much more relevant, and I think while Facebook will still be relevant, I think they will push more and more people away.
If you had to mentor a new social media newbie, what is your go-to advice to become successful?
Build relationships!!! To be honest, that is all I do on Twitter. I am not looking to sell anything, I have no other motive. I want to make as many friends as I can around the world, because some of those relationships will turn into long-lasting business relationships.
Want to connect with him? Find him on Twitter, Facebook, LinkedIn, Instagram or YouTube. Or, you can reach out to us for an introduction.
10 Luxury Magazines Targeting Europe’s Affluent
When it comes to luxury brand marketing in Europe, one of the best platforms to use is a range of luxury magazines that are designed specifically for a sophisticated and affluent readership. We have selected the Top 10 magazines (in no particular order) that do just this.
Le Grand Mag
Le Grand Mag is dedicated to “extremely well living”. It covers everything that is to do with an extraordinary life, from helicopters to beauty, from lingerie to cars.
The Wealth Collection
For advice on luxurious enjoyment, the affluent need look no further than The Wealth Collection. This magazine caters to an exclusive readership and focuses on both managing a personal fortune and embracing the very best in life.
Luxury Life Magazine
The Swiss-based Luxury Life Magazine is distributed exclusively to HNWI and UHNWI. With an estimated global readership in excess of half a million, it is an ideal advertising platform for luxury brands.
Sur La Terre
Sur La Terre focuses on the unique and sophisticated. In addition to covering the latest global trends, the 10 editions across Europe and the Middle East feature regional content for the affluent.
Deutsch Magazine
German luxury magazine Deutsch focuses on fashion and society. It aims to set new trends through high quality content and extensive photography series.
Reality Sense
Villae International is “for connoisseurs of the good things in life”. It is the official publication of EREN – the European Real Estate Network. This magazine is the epitome of quality and excellence.
Hearst
The newly launched Hearst Magazinez UK offers a British take on high society, high culture and high fashion. It has the same wit and sophistication as the US publication whilst targeting the UK’s luxury market.
Kempinski Magazine
The Kempinski Magazine is only available at certain exclusive locations, such as Kempinksi hotels and Sixt saloons. It is a celebration of all that is beautiful and elegant.
Robb Report
The renowned Robb Report is synonymous with the global luxury market. It covers all aspects of the ultra-affluent lifestyle, targeting sophisticated connoisseurs the world over.
Departures
Departures is a luxury magazine that targets affluent readers interested in travel, fashion, shopping, lifestyle, art and culture. In particular, it is aimed at American Express’ Platinum Card and Centurion members.
Defining an Influencer for Your Luxury Brand
The biggest challenge in connecting with influencers for brand awareness lies in identifying the right influencer; in marketing terminology – understanding the characteristics defining an influencer for your luxury brand.
Influencers are usually very active in various social media circles and through blogs. They are brand promoters, brand advocates and niche marketers.
Does your luxury brand really need influencers? Of course! When someone who has hundreds and thousands of followers on social media platforms hails your luxury brand as the next best thing, you will inevitably gain brand exposure in front of an audience who is attentive.
Luxury brands have to look at influencers as mutual friends, connecting their luxury brand to thousands of potential customers. Customers these days do not pay heed to the hordes of billboards or listen to the rhyming commercial jingles like they used too; they are intelligent and want to research a product or a brand on their own and, perhaps, take in the advice of an influencer they trust.
So, what defines an influencer?
Niche: Having someone who has a huge fan following is not going to be of much use to you unless they reach out to your target audience. So, the ideal influencer would be someone who can wield influence over your niche market.
Audience: The influencer's audience must be targeted and focused on your coveted audience. Even though Miley Cyrus or Justin Beber both have millions of social media fans, and may be considered as some of the most influential celebrities, their tweet praising your products might actually hurt your brand if you are trying to reach the affluent consumer.
Reach: An influencer with a huge fan following will surely have a bigger impact than one with a smaller reach. Saying this, do not disregard those who have just joined the digital game as they might become the most influential in a year's time.
Personality Type: A celebrity can be an influencer but so can an environmental activist, a mommy blogger or a private concierge. Before starting an influencer campaign, define the ideal influencer persona that will best suit your brand interests.
Location: Although you may want to reach a specific location, remember that the web is international and influencers often exert authority without borders.