With the exponential growth in digital information, understanding how brands are using the data to engage with consumers across all touch points is both a major focus and challenge for luxury brands.
“Brands looking to shift to a consumer-centric social media strategy should use social media as the lynchpin of the brand’s marketing strategy and voice.”
William Bruce Cameron said, “Not everything that can be counted counts and not everything that counts can be counted”. With the exponential growth in digital information, understanding how brands are using the data to engage with consumers across all touch points is both a major focus and challenge for luxury brands.
With growth in the luxury goods market, exceeding €212 billion in 2012, increased online luxury goods sales expected to climb 20% per year by 2015 and 70% of high income households using social media, consumer behavior and the relationship between the brand and consumer has shifted. However, measuring the impact of these changes for marketers is challenging.
One of the main questions being asked by brands is: “Does maximising the number of likes or followers on social media platforms drive purchase for luxury brands?” Examining the causal relationship between community size–likes or followers–and sales, revealed the need to take a step back and first re-shape how brands develop relationships they have with consumers or potential consumers. Accordingly, a paradigm shift towards a one-to-one personal relationship, an even playing field where consumers and brands share power, is proposed.
Furthermore it’s suggested that brands looking to shift to a consumer-centric social media strategy should use social media as the lynchpin of the brand’s marketing strategy and voice while understanding that what triggers one person’s actions cannot be reused as the strategy to drive others–the path to purchase is no longer linear.
The authors of the Groundswell reaffirms this stating: “concentrate on the relationships, not the technology…relationships are everything”. Social media relationships are currently one-way, with consumers ‘liking or following brands’. To develop a one-to-one relationship, a first step may exist with following back significant contributors of the brand.
Developing a personal relationship between brands and consumers can only be implemented if a brand’s internal culture, beginning with leadership, believes in it and implements it within all areas of the business, thus producing an entirely new business culture. Next, they can focus on driving revenue by bridging the gap between social media and e-commerce.
Meet other experts on the topic, and check out their ideas in the following video: http://bit.ly/1a04Ke1
Interested in finding out more about building a creative economy? Be sure to attend the MA Innovation Management Grad Show June 19-23 at Central St. Martins College of Arts & Design.