Luxury Retail: Top Influencer Strategies You Must do

Luxury Retail

In our experience, the foremost step in influencer marketing is defining clear objectives. It's really important that you understand what you are actually trying to achieve, in terms of sales quota, brand awareness, email signups or more. Having a clear KPI and then judging the success based on it is what separates your campaigns and efforts out. Each goal demands a distinct approach.

Only when your objectives are crystal clear can you steer your influencer marketing campaigns with purpose and achieve tangible results. 

Choose the influencers who align with your brand values and who share the same audience as yours

In our years of experience helping luxury retail brands with influencer marketing, our first suggestion is to have a thorough process identifying the right influencers for yourl influencer marketing strategy, and what we actually mean is to collaborate with the ones who represent your values. And it’s not always about the followers or the numbers, instead it’s more about if their audience is the right fit. Do they have the purchasing power and will they be motivated to give your brand a thought, if this specific influencer goes forward and recommends it? It's not just a matter of picking popular names; it's about finding influencers whose attributes harmonize with your luxury brand's identity and values. Quality supersedes quantity in this domain.

The selection process should be meticulous and informed. Consider factors such as the influencer's style, content authenticity, and alignment with your brand's image. It's not merely a numbers game; it's about ensuring that the influencer's content resonates with your target audience in a meaningful way.

And specifically when we talk about  luxury retail, where brand image and exclusivity are paramount, the influencer's values must align with your brand's ethos. This alignment ensures that the influencer's endorsement feels genuine and doesn't hamper or dilute the brand's image. In our agency, we firmly believe that choosing the right influencers, even if it means working with a select few, is the pathway of a successful luxury retail influencer strategy. Quality collaborations that authentically reflect your brand's essence can lead to greater trust and engagement with your target audience.

Micro influencers hold sway over highly engaged, niche audiences

There is no denial emphasizing the vital role that micro-influencers play in the realm of luxury retail. It's important not to underestimate their impact, as they often hold sway over highly engaged, niche audiences. In luxury retail, we're not just aiming for mass appeal but rather connecting with a select, discerning clientele. Micro-influencers, with their specialized and dedicated followers, are a great opportunity for us. Their ability to authentically resonate with their audience can yield significant results.

While macro-influencers may have a broader reach, their connection might not be as deep or aligned with the exclusive image we aim to maintain. Micro-influencers, on the other hand, often possess an intimate understanding of their niche and can present our products with a level of credibility that resonates profoundly. The attention that micro-influencers give to their niche audiences is your gateway to building authentic, long-lasting relationships with high-value customers. Disregarding their potential impact could mean missing out on a potent avenue for growing your luxury brand.

Does that mean we are denying the impact of macro influencers?

No, that is not the case. Macro influencers do have a great impact on brand awareness and creating a sense of exclusivity for your products. But, what we mean is that we need to have a perfect combination of macro and micro influencers so that there is always more room for improvement and achieving KPIs.

Create authentic and engaging content that resonates with the influencer’s followers and your brand simultaneously

When you think about crafting content that truly connects with both your brand and your audience starts with understanding what your brand stands for, its values and what makes it special. You also need to get to know the people who follow your brand, find out what they like and what's important to them. Once you've got a grasp of these two pieces, it's time to create content that links your brand's style with what your audience enjoys. It's like speaking the same language.

Tell a captivating story in your content. It could be about your brand's history, a product, or the people working behind the scenes. Make it interesting and relatable.Keep it real and genuine. Your audience should feel like they're a part of the story, which makes it memorable. By having your content reflect your brand and speak to your audience, you build trust. People begin to have faith in your brand and what it stands for.

We at CodeDesign ensure that our clients and influencers work together to create a genuine voice and message

When we team up with influencers to make content, we aim for it to feel real and connect with their followers. These followers are smart and can tell if something doesn't feel genuine. That's why we put a lot of effort into making sure the content matches the influencer's style and our brand.

The strength of this teamwork is in the real connection it forms with the audience. It's about telling a story that seems authentic and interesting. We don't want the audience to only see our products; we want them to imagine our products being a part of their lives.

By doing things this way, we don't just get more people interested; we also build trust. It's about showing the audience that our brand cares about what the influencer stands for. This mix of the influencer's voice and our message leads to content that doesn't just get attention; it gets people to really think and feel.

Maintain consistent aesthetics to improve brand recall value

Whenever we run influencer campaigns, we place strategic importance on upholding a consistent visual aesthetic throughout influencer marketing campaigns for our clients. 

When people encounter content that looks and feels consistent with a brand they've seen before, it creates a sense of familiarity. This familiarity is essential because it helps individuals remember the brand more easily. This familiarity and recognition translate into better brand recall. When people come across the brand later on, they are more likely to remember it because they've seen it before, and it looked the same. This, in turn, can lead to improved trust and customer loyalty, as people tend to choose brands they are familiar with and trust.

When we work with influencers, we make sure that the colors, pictures, and design styles they use match our client's brand. This makes everything feel connected and familiar to the audience.

We spend time explaining to our influencers what our client's brand looks like and what it stands for. We give them clear guidelines and examples. This way, the content they create fits well with the brand. We also check what the influencers create to make sure it looks right. We look at their pictures, videos, and designs to see if they match what we want. By doing this, we help people recognize the brand and trust it. When people see influencer content that fits the brand's look, they can quickly understand and like it.

Consistently track analytics and ROI to see if the influencer is the right fit

Consistently tracking analytics and return on investment (ROI) in influencer marketing is essential to determine if the influencer is the right fit. By closely analyzing the data, we can ensure that the influencer's efforts align with the campaign's objectives. Are they contributing to increased brand awareness, sales, or other key goals? Tracking helps us measure this alignment. Continuous tracking enables us to make data-driven adjustments. If we notice that a particular influencer or content type isn't delivering the desired results, we can optimize the campaign strategy in real-time.

To do this, we employ a multi-faceted approach. We use tracking links that allow us to monitor the flow of traffic generated by influencer content. These links help us understand how many people are clicking through to our client's website or landing pages.

In addition to tracking links, we often suggest our clients to allocate coupon codes specific to each influencer or campaign. These codes not only incentivize purchases but also provide a clear way to attribute sales to a particular influencer. When customers use these codes, we can directly link their purchases to the influencer's promotion.

Furthermore, we leverage analytics tools to gain a comprehensive view of the campaign's impact. We closely monitor web traffic, conversion rates, and sales data. This data-driven approach enables us to discern which influencers, content, or strategies are yielding the best results. This measurement process isn't just about quantifying sales; it's also about gauging brand awareness. We track metrics such as social media engagement, follower growth, and brand mentions. These metrics help us assess the broader impact of influencer campaigns on brand visibility and recognition.

Influencers and brand partnerships must be vocal and transparent

In today's regulatory environment, it's essential to adhere to disclosure guidelines. Failure to do so can lead to legal issues and damage a brand's reputation. Audiences have come to expect transparency. When influencers are open about their brand relationships, it's seen as a sign of credibility and authenticity. Do you remember any influencer video where they completely promote a brand, but don’t say that it’s a sponsored content? In my experience, I’ve seen a few and it really leads to a bad image about both influencers and the brand because it appears fishy.

Disclosure makes it clear to the audience that the influencer's endorsement is part of a paid partnership. This clarity ensures that there's no confusion about the nature of the content.  And, when we specifically talk about the fact that when influencers openly disclose their partnership with our brand, it builds trust with their audience. It shows that they're honest and not trying to hide anything.

Regulations and guidelines you need to follow when working with influencers

United States:

Federal Trade Commission (FTC) Guidelines: In the U.S., the FTC enforces guidelines related to influencer marketing disclosure. Influencers are required to clearly and conspicuously disclose their material connections with a brand or product. This includes paid partnerships, free products, and any other compensation received.

Endorsement and Testimonial Guides: The FTC's Endorsement and Testimonial Guides outline how endorsements and testimonials in advertising, including those by influencers, must be transparent and truthful. They cover both online and offline marketing.

European Union (EU):

Consumer Protection Regulations: The EU has stringent consumer protection regulations in place that require transparency in advertising and marketing. These regulations apply to influencer marketing as well.

Unfair Commercial Practices Directive: The Unfair Commercial Practices Directive sets rules to protect consumers from deceptive marketing practices. It requires that influencer marketing is honest and transparent, ensuring consumers are not misled.

Try new platforms and influencers to showcase that you are bold 

Remaining agile and exploring emerging platforms and trends is a cornerstone of our approach at CodeDesign in the dynamic realm of luxury retail.  New platforms often bring in fresh, untapped audiences. By staying agile and venturing into these spaces, we open up opportunities to connect with potential customers we might not have reached otherwise.

Luxury retail is closely linked to exclusivity and innovation. Embracing new platforms and trends showcases our brand as forward-thinking and at the cutting edge of industry developments. Relying solely on traditional platforms can limit our reach. Exploring emerging platforms allows us to diversify our marketing efforts, reducing risk and expanding our presence. Being among the first to adopt emerging platforms can provide a competitive advantage. It positions us as leaders rather than followers in the luxury retail space.

Proper storytelling campaigns could take your brand to the next level

Through storytelling, influencers can communicate the value of a luxury product. They can illustrate how a designer handbag, for example, is more than just a fashion accessory; it's an investment in quality, timeless style, and self-expression. Influencers can also use storytelling to educate their audience about the craftsmanship and unique features of a luxury product. By narrating the intricate process involved in creating a luxury car or a piece of jewelry, they showcase the product's exceptional qualities.

Examples of Successful Storytelling Campaigns:

Tiffany & Co. "Will You?" Campaign: Tiffany & Co. partnered with influencers who shared personal engagement stories, highlighting their iconic engagement rings. These narratives tapped into the emotion and significance of the brand's jewelry.

Louis Vuitton and Travel: Many travel influencers have effectively integrated Louis Vuitton products into their travel stories. They emphasize the practicality and luxury of the brand's luggage while showcasing exotic destinations.

Rolex's "Every Rolex Tells a Story": Rolex launched a campaign where various influencers shared their unique experiences while wearing Rolex watches. These narratives emphasized the durability, reliability, and adventurous spirit associated with the brand.

Chanel's Journey of a Perfume: Chanel leveraged storytelling by taking influencers and their audience on a journey through the history and artistry behind their iconic fragrances. This educational approach added depth to the brand's luxury products.

How CodeDesign carries out influencer segmentation for the clients?

Segmenting influencers based on audience demographics, psychographics, and behavioral data is a strategic approach that CodeDesign adopts to ensure precision and effectiveness in influencer marketing for luxury brands. We start by examining the demographics of an influencer's audience, such as age, gender, location, and income level. By aligning these characteristics with the luxury brand's target audience, we ensure that the influencer's followers closely match the ideal customer profile. Beyond demographics, we dive into the influencer's audience's psychographics. This includes their values, lifestyle, interests, and attitudes. This step is vital for ensuring that the influencer's audience shares the same values and aspirations as the luxury brand's products.

We closely study the behavioral data of the influencer's followers, such as online purchasing habits, content consumption patterns, and engagement levels. Understanding these behaviors helps us pinpoint influencers whose audience is more likely to take action, such as making a purchase or engaging with the brand's content. By selecting influencers with a highly compatible audience, we significantly enhance engagement levels. Their followers are more likely to connect with the brand's message, leading to increased likes, comments, and shares. By concentrating efforts on influencers with a highly relevant audience, we optimize marketing budgets. Resources are allocated where they are most likely to yield significant returns.

How did we help our luxury retail client Guerlain with a targeted influencer strategy?

Guerlain had a big presence on social media, using platforms like Facebook, Instagram, and Twitter. But, they needed help making their social media presence actually lead to more business. That's where our secret weapon, influencer marketing, came in. This means teaming up with people who have a lot of followers on social media to promote products and brands. Our task was clear: we needed to find influencers in the cosmetics and beauty world who truly connected with their audience and fit Guerlain's target market. These influencers, carefully selected for their relevance, were given Guerlain's products and asked to create content that not only highlighted the products but also embodied the brand's spirit. We were expecting their posts to spread far and wide, reaching an audience that was a perfect fit for Guerlain.

It was a remarkable success story. In just half a year, we saw a tremendous 35% increase in sales thanks to social media. The carefully planned influencer strategy effectively connected Guerlain with their desired customers. Not only did the brand gain more recognition, but it also achieved an extraordinary boost in sales.

FAQs - Frequently Asked Questions 

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