Defining Luxury

Who are the new, post-recession, high-end consumers—and how do you sell to them?

By Erinn Morgan

It's all about psychology. So says Pam Danziger, president of Unity Marketing, a marketing consulting firm for the luxury market. "You might have two consumers living in the same community with similar incomes, but one drives a Mercedes and the other drives a Prius. Their demographics might be similar but their psychographics are very, very different," she explains.

Psychographics determine the willingness to buy. As such, Danziger indicates that sales professionals need to become a bit more perceptive regarding the interests and motivations of their customers. A little bit of detective work will go a long way in pinpointing the products and services that are right for different customers.

In fact, the five personalities that make up the new luxury market customer base were outlined in a recently held webinar entitled "Marketer's Field Guide to the Luxury Consumer Market," presented by Danziger and Greg Winston, an expert in highperformance sales training and author of Opting for Opulence: 14 Proven Strategies to Master Selling in the Luxury Market.

The webinar also explored how to sell to each of these affluent customer groups. "The time when luxury and quality items were sold without sales skills has passed," says Winston. "With a reduced number of customers, retailers can't gamble on outdated—or non-existent—sales skills. Each customer contact today is worth easily 50 percent more than it was two years ago. Selling the customer, not just presenting merchandise, is what is needed today."

Here, we take a look at the sales strategies and tactics that can maximize sales to each of the different luxury consumer personalities based upon their unique psychology. "Tailor your message to each group through your sales staff," says Danziger. She also suggests looking at what they are wearing to deduce which luxury consumer group they are a part of.

"This is all so important because the days of just being able to get consumers to part with a lot of money without any real service are over," says Danziger. "Luxury retailers have got to invest in training their sales personnel to know how to sell."

THE CONSUMER: X-Fluents

This extremely affluent uber-group boasts the most highly indulgent luxury consumer. They buy the most frequently and spend the most on luxury living.

THE SALES STRATEGY:

They are luxury retailers' best prospect for sales, but they now demand quality. Retailers will excel by offering them the best of the best—products with no compromises. At the same time, Danziger points out that "X-Fluents like to buy and dress in subtle designer fashions." In other words, there is no bling or flashy logos for this group.

THE CONSUMER: Aspirers

This consumer segment has not yet achieved the level of luxury to which they aspire, but luxury is what they have and aim to purchase. They are the most materialistic group.

THE SALES STRATEGY:

Aspirers need the status and confidence that brand logos convey, says Danziger, "And they are usually dressed to nines. They are announcing, 'I'm an Aspirer,'" she notes. As such, she suggests steering them to products with the most bling and flash.

THE CONSUMER: Cocooners

Think Martha Stewart. This segment is focused on hearth and home and, as such, they spend most of their luxury budgets on feathering their luxurious nests.

THE SALES STRATEGY:

Cocooners are most often dressed for comfort and they express their identity through luxury purchases for their homes instead of fashion or experiences. "If this person walks into your optical shop, they are not likely to buy expensive glasses," says Danziger.

THE CONSUMER: Butterflies

This is the most highly evolved luxury consumer group and, at the same time, also the least materialistic. They focus on personal and experiential luxuries. Additionally, they are socially conscious—they want to leave the world a better place.

THE SALES STRATEGY:

Since this highly experiential consumer thrives on the purchase of luxury services, Danzinger recommends somehow transforming the tangible products you sell—or the sales experience itself—into an experience. "Today, you are not really selling stuff," she explains. "You are more servicing the customer."

THE CONSUMER: Temperate Pragmatists

This newly emerged luxury consumer has a take-it-or-leave-it attitude about luxury—the pursuit of a luxurious lifestyle is simply not all that important to this consumer. In the end, they are careful spenders not prone to indulgence. "They are wearing Birkenstocks and organic cotton T-shirts," says Danziger.

THE SALES STRATEGY:

Since this consumer views consumption with suspicion, retailers can only appeal to this group's mindset with practical, quality products.