Recently I came across an article on the guardian (http://www.theguardian.com/marketing-luxury-goods-feb-15/2015/feb/16/digital-marketing-luxury-brands)
that highlighted the influence of emerging digital marketing on luxury brands.
The rise of digital marketing is changing the way luxury
brands engage with customers, and traditional companies must embrace what is
now possible in today’s connected and mobile world or be left behind. “The
luxury industry is at a turning point,” said Chris Moody, creative director at
brand consultant Wolff Olins, speaking at a seminar hosted by the Guardian and
held in association with Harrods Media.
An invited audience joined industry experts to debate the
risks and creative opportunities for luxury brands enabled by digital
technology. Digital interaction was a feature of the event itself, as audience
members participated through an iPad app, submitting questions and voting on
which ones should be addressed by the panel.
The automotive industry is an example of the profound change
wrought by digital, said Laura Schwab, marketing director at Jaguar Land Rover.
“The amount of times
people actually go to a car dealership has diminished. By the time they get to
the door all they really want to do is test drive. All the research, everything,
happens online.”
The implication for motoring brands is that winning that
dealership visit requires engaging first with the customer online, and ensuring
that compelling digital content is available. “We don’t do a lot of print,”
said Schwab. “For Land Rover it is close to zero, and for Jaguar a small
percentage of our budget.”
Print remains important in many sectors, but the trend is
unmistakable. “Print and other media have still got high circulations,” said
Harrods Media sales director Guy Cheston, “but that point will tip soon,
particularly with the younger generation who haven’t grown up reading a glossy
magazine every month.”
There were signs of scepticism in the audience over the
merits of digital. One question submitted to the panel via the app quickly rose
to the top as people voted for it to be discussed: “The return on investment
(ROI) is not as big with digital, so why should we invest in digital
advertising?”
The answer, according to the panel, is that digital
marketing means a change of mind-set and not just a change of medium. You
should look at return on interaction rather than return on investment, said
Moody. The “ROI point” is no excuse for not moving forward and innovating.
“You are building a relationship with people who may
continue to use your product for the next 25 years. Those interactions that you
have, particularly through social streams that you can get through digital, are
super valuable. It would be a shame not to invest in that.”
One of the benefits of digital media is that it generates
data, enabling analytics that were previously impossible. “Digital media is
more measurable than any other form of media we do. It is not just about huge
reach numbers, it is about creating engagement, understanding our customers’
journey and then delivering relevant content along the way.”
Social media are hard to get right, but they are one of the
most rewarding, the seminar was told. It starts with assembling the right team.
Interacting on social media requires a level of knowledge and customer service
that accords with the core values of that brand.
“When you decide you want to start engaging in conversation
with your community, you’ve opened up the doors to create a two-way
communication stream, you can’t decide ‘Oh, but we are a little tired and it’s
Sunday’. You have got to be willing to step up to that,” said Schwab.
Social media are not marketing platforms, said Moody.
Rather, “it is a way of starting a conversation. You can’t push out a broadcast
message through a social stream because people will make negative comments.”
No comments:
Post a Comment