The premium segment is not just customers with high checks, it is a completely different business philosophy, where personalization, exceptional service and the ability to build long-term relationships come to the fore. In pursuit of profit, many companies forget about these subtleties, making the same mistakes.
Yulia Lebedeva, Marketing Director of the Grand furniture complex, tells how to avoid fatal mistakes when working with premium clients and how to adapt marketing tools to the needs of a discerning audience.
5 mistakes when working with premium audiences
Author: Yulia Lebedeva
Mistake 1: Not paying enough attention to personalization
While the mass market is aimed at the mass consumer, the premium segment focuses on individuality and attention to every detail.
These clients are not just high-income buyers. These are people who value quality, uniqueness and impeccable service. For them, the purchasing process is not only a way to satisfy the need for a specific product, but also an opportunity to emphasize their status and receive special emotions from interacting with the brand.
Personalization in this context is not limited to names and special terms. It’s also about creating an atmosphere of exclusivity, where everything speaks of the importance of the client. A deep understanding of needs and preferences is the foundation on which a personalized approach is built. It is important to know his purchase history, interests, hobbies and values.
It is also necessary to collect and analyze information about preferences, purchases, and lifestyle. Keeping such records manually or “in a notebook” is quite difficult, time-consuming and fraught with errors. It is better to store and process data using CRM systems that allow you to create detailed customer profiles and track their behavior.
A properly compiled profile will help:
- Offer relevant products and services that truly meet the customer’s needs and desires.
- Personalize communications, making them more targeted and effective.
- Create individual offers and promotions that will be truly interesting to the audience.
Mistake 2: Declining the loyalty program
There is a widespread belief that the premium segment does not need loyalty programs. After all, wealthy people are not interested in discounts, bonuses or points.
Indeed, discounts may run counter to their desire for exclusivity and even raise doubts about the high quality of the product. However, this does not mean that there is no place for a loyalty program. On the contrary, they are necessary, but in a different form, different from the standard one.
Customers who are willing to pay dearly for a product value not so much a price reduction as recognition of their special status. Therefore, the loyalty program for this segment should be built not on discounts, but on the provision of additional services and personal offers.
The transformation of the loyalty program for premium customers is a transition from material benefits to emotional ones. There is a place for gifts and pleasant bonuses, but the emphasis here is not on additional benefits from the purchase, but on demonstrating the store’s special attitude.
For example, an accessory chosen as a gift or handmade chocolate included in a shopping bag is not about a “free bonus”, but about the attention that this segment so values. Such gestures evoke positive emotions and reinforce the association of the brand and store with care and consideration.
One of the key features of loyalty programs for premium audiences is exclusivity. The audience should feel that they are part of a “closed club”, having access to what others cannot. These may include: private sales with early access, closed events, personalized offers, priority service and delivery, access to limited collections and new items.
A well-thought-out loyalty program is an opportunity to build long-term and deep relationships. When a customer feels that their needs are not just met but exceeded, when they feel valued by the brand and receive exceptional service, there is no need to look to competitors for alternatives.
Moreover, a satisfied customer is highly likely to recommend the brand to those around him. After all, for wealthy people, recommendations from their circle often mean more than any advertising.
Read on topic: Customer loyalty program: what is it and what business goals does it solve?
Mistake 3: Not segmenting your audience
In the premium segment, it is not enough to consider all wealthy clients as one whole. It is extremely important to distribute the audience. Each segment has unique needs, values, and behaviors that must be addressed.
Each business that works with such an audience has its own specifics. Examples include the following categories of clients:
- Wealthy older people — are distinguished by their conservatism, rational approach to spending and adherence to traditional values. They value quality, reliability, brand history and a high level of service. When communicating with them, a respectful tone, attention to detail, and a willingness to provide comprehensive information about a product or service are especially important.
- Young businessmen – dynamic, technologically advanced and striving for exclusivity and innovation. They are open to new experiences, value their time and prefer quick and effective solutions. For this category, the innovation of the product, the uniqueness of the offer, the possibility of self-expression through purchase and compliance with modern trends are important.
- Family clients with children — value safety, comfort and environmental friendliness of products. For them, quality guarantees, the availability of additional services, the opportunity to receive professional advice and special offers that take into account the special needs of families and children are important.
Mistake 4: Not prioritizing customer service
Service plays a critical role in building loyalty and business success. Understanding why this aspect is so important goes beyond simple truths about the importance of “good service.”
Premium audiences have high expectations. They are accustomed to impeccable quality in all aspects of their lives, and their expectations of their interactions with the brand are no exception.
Luxury consumers seek unique and memorable experiences. Therefore, every contact with a brand must be thought out to the smallest detail and meet their high standards.
Premium clients value their time and expect efficiency in everything. This also applies to customer service. Long waits, the need to repeat your request to several employees, a complex return process – all this causes irritation and dissatisfaction.
Negative experience in this segment has more serious consequences than in the mass market. If a customer experiences unsatisfactory service, he will not only go to competitors, but will also be more likely to tell those around him about the negative experience. Word of mouth is especially effective in this environment, and a bad reputation can cause serious damage to a business.
High-quality service is a key factor of differentiation in the competitive premium market. In an environment where many brands offer products and services of comparable quality, service becomes the factor that determines buyer choice.
Companies that invest in staff training, personalization of service and creating unique customer experiences gain a competitive advantage and strengthen their position.
Read on topic: Not only quality: what makes a customer come back
Mistake 5: Not following up after the sale
Keeping in touch after the sale is not just a courtesy, but a strategically important aspect of a successful business. Unlike the mass market, where the main focus is often on attracting new customers, in the premium segment customer retention plays a key role.
Regular post-sale contact allows companies to strengthen customer relationships and increase customer loyalty. Showing attention and care after the transaction is completed builds long-term trust in the brand.
You can stay in touch in a variety of ways, from personalized offers and holiday greetings to invitations to exclusive events and access to private pre-sales.
Constant communication with customers makes it possible to receive feedback about products or services. This allows companies to better understand the needs of their target audience and make timely adjustments to their product line or improve service. And also an effective way to encourage repeat purchases. By regularly reminding yourself and offering relevant products or services, companies can significantly increase their profits.
Conclusion
There are no universal solutions in the premium segment, because each client is unique and requires an individual approach. It is important to remember that wealthy people come from different generations, social groups and areas of activity. Only a deep understanding of the specifics of the audience will allow you to develop an effective interaction strategy and achieve success.
Premium customers are willing to pay more for products and services, but only if they see value and receive more than just high quality. Exceptional service, individual approach and the opportunity to touch something special – this is what is really important for a discerning audience. Companies that can provide this will receive not just customers, but loyal brand followers.
Read on topic: What is a client empathy map?
Cover photo: Unknown man /
Source: rb.ru
