Many companies that sell higher-priced products or services have felt increasing pressure to get involved in a "race to the bottom" when it comes to pricing. We're constantly hearing that customers just won't pay what a product is worth these days or that companies must try to compete with discount stores or they'll never sell anything at all.
We're here to tell you that, contrary to popular reasoning, the idea that you can't compete without in-the-gutter low pricing just. isn't. true.
Higher-priced and higher-valued products and services do sell, and companies can absolutely embrace prices that reflect the value of their products without compromising their bottom line. You'll just need to tweak a little bit of your digital marketing strategy to reflect the unique ways consumers interact with luxury brands and what they're really searching for.
Wondering how to sell an expensive product without having to give up on the price? Luckily for you, we've put together the perfect ebook to help you get started:
Marketing Automation is Just the Beginning.
While our ebook helps you build a digital marketing strategy for luxury brands by making the most of what marketing automation has to offer, it's just the beginning! We've also put together a few quick pointers on ways to boost your growth and generate new leads right away.
Let's get started.
1. Don't Just Talk About What Your Product Is. Talk About Your Why and How.
We've spoken before about the importance of storytelling in Inbound Marketing, and there's really no niche where the story is more important to the end consumer than in luxury living products and services. When your product is either not considered an "essential", or it's higher-priced due to details like durability or design, you need to support your pricing structure by showing how you came to that number.
An engagement ring from Brilliant Earth, for instance, is more than just a circle of metal and some precious stones. The company sets itself apart by following strict ethical standards: all diamonds are conflict-free, do not fund civil wars in conflict-heavy regions, are listed by country of origin, and are sourced from mine operators who follow specialized labor, trade, and environmental regulations.
While an engagement ring from Brilliant Earth may cost more, their value is associated with conscious consumer choices that the wearer can feel helped to improve the lives and support the livelihoods of mine workers and their families.
Brilliant Earth goes to great lengths to tell their story. They don't rely on just answering what the product is, where it comes from, and when they got started, they also tell you their why and how, too.
It's a mistake to buy into the myth that all prospects care about is the price they pay at checkout. What modern consumers are interested in is a complicated mix of user experience, personal connection, and value.
You'll need to prove your reasons for a higher price that don't just sound like an impersonal sales pitch... which leads into our next point.
2. Start the Conversation, Stay Honest, and Don't Avoid the Competition
We'll hammer this home as often as it takes — today's prospect is more interested in working with a company they trust than the guy on the corner hawking snake oil to the crowd, even if that snake oil is sold at a discount.
Luxury buyers know they're looking at higher prices in return for a perceived value. They know this product probably isn't essential to their ability to breathe, eat and drink, and keep a roof over their heads.
Most of all, they know when they're just being advertised to.
So don't try a spammy sales pitch on these informed, energized customers who are good and ready to advocate for their own best interests. Instead, engage them in conversation early and often. Personalized content like interactive videos, assessments, and more give the consumer control over what kind of marketing content they receive. This helps them feel like they're working with you to make a decision about their luxury purchase.
A simple live-chat service can help your prospects connect even more strongly with you and get real-time answers to their important questions. Keeping logs of these chat sessions will also help your marketing team build an excellent library of potential content topics they can pull from for blog posts, video marketing, and email newsletters.
If you know there's competition out there undercutting your prices, don't ignore their existence. Trust me: your prospects are out there doing research before they buy, and I guarantee they are very aware of those lower-priced options. Instead of pretending the competition doesn't exist, build them right into your marketing strategy!
Use product or service comparisons that show why your prices reflect the greater value of your product. You might utilize testimonials from those who initially chose the cheaper service, later regretted it, and have become loyal customers for your company since. Break down your pricing structure to show how a higher upfront price ends up saving money long term when compared to cheap products that have to be constantly replaced.
Be honest, upfront, and engaged. Prospects who realize they're dealing with an honest company willing to back up their claims and pricing by providing greater value get loyal customers who stick around for repeat purchases. Plus, they'll tell everybody how awesome you are.
3. Never Forget That Luxury Isn't a Category — It's an Experience
For many buyers of luxury products and services, it's not about owning something pretty. Often, luxury buyers are people who have worked hard, sacrificed luxuries early on, and are at a stage in their lives where they're ready to enjoy the benefits of all that hard work.
Luxury buyers have spent their lives making cautious and considered decisions with their money, so they're going to expect a higher caliber of quality, value, and experience. Check out our quick video below on the Luxury Brand Buyer Persona and what they're searching for:
When it comes to making an investment in a fully-equipped outdoor kitchen for entertaining at home, heading out on a cruise vacation, installing a pool in the backyard, or even picking up a luxury handbag, they've made a choice to trade money in exchange for something more intangible but immensely invaluable — experiences.
With our first three examples, the experiences in question are a little easier to define.
- A fully-equipped outdoor kitchen lets you entertain effortlessly.
- A cruise vacation allows for relaxation at sea and offshore experiences you'll remember forever.
- An inground pool can be a serene place for you to relax or help your child's summer dreams come true.
What about that handbag, though? What about other products that aren't a built-in experience all by themselves?
There's an easy answer there, but it's going to take some investment on the part of your marketing team. When you're considering the best way to sell a luxury product, you as the brand need to be ready to create the experience.
Brands like Kate Spade craft an experience for their users through a mix of excellent content marketing strategy and a dedicated team that really gets the brand's Buyer Personas and what they're looking for.
Kate Spade's Instagram stories provide a mix of inspirational quotes, product showcases, and on-brand humor while their website is clean, well-designed, and just a little bit silly and sweet.
They know what their Buyer Personas are looking for when shopping for a luxury like a well-designed handbag, and they're prepared to provide it.
You might not have the marketing budget of a Kate Spade-sized company, but that doesn't mean you can't provide that same engaging experience to sell your luxury product or service.
You just need a marketing team willing to do the work, and marketing automation to simplify their efforts.
4. Invest in Marketing That Tells Your Story
Your product or service going for a higher price doesn't have to be a weakness. Most low-cost businesses simply can't afford the marketing team and follow-through required to build a loyal customer base, but luxury brands can.
The business-to-customer relationship doesn't end the day you make the sale. The customer continues the experience with your brand by taking the product home and having their first experiences with it. We call this time the Second Moment of Truth, and a good marketing team can leverage that moment to build a positive long-term relationship.
Marketing platforms like HubSpot consistently release new marketing automation tools designed to simplify the process without sacrificing your ability to reach current and future customers for your luxury product.
Looking to understand just how marketing automation for luxury brands can help take your business from struggling to successful? We're always here to help! Give us a call at (864) 288-6162 or contact us online today to request your FREE consultation.