Some concrete marketing ideas according to the new luxury market rules.

1. NEW RULES FOR THE 21ST CENTURY LUXURY MARKETING STRATEGIES Nadia Albarello

2. SOME NEW RULES? Source: The Luxury Institute

3. SHALL LEADING LUXURY WATCH BRANDS CONSIDER THESE RULES?

4. YOU BET!

5. IN 2006 ALMOST ALL (98%) OF THE WEALTHY USED THE WEB AT HOME, OVER 2/3 USED IT AT WORK Source: The Luxury Institute

6. 51% OF WEALTHY CONSUMERS ADMIT THEY USE THE WEB TO RESEARCH PRODUCTS AND SERVICES Source: The Luxury Institute

7. IN 2006 43% ADMITTED TO BUY PRODUCTS AND SERVICES ONLINE FREQUENTLY OR OCCASIONALLY Source: The Luxury Institute

8. Let’s follow #1 RULE 1# IMPATIENT LUXURY BEGINNERS EXIT THE INDUSTRY IF CANNOT FIND WHAT THEY’RE LOOKING FOR QUICKLY Source: The Luxury Institute

9. LIVE LUXURY STORE EXPERIENCE MUST NOT BE REPLACED BY WEB (SHOULD BE SUPPORTED BY) BUT…WHERE ARE MOST PEOPLE LOOKING FOR INFO BEFORE PURCHASING?

10. PEOPLE WANT QUICK ANSWERS

11. looking for RECOMMENDATIONS: bing vs. google

12. What does GOOGLE do? Relevance-related search results = no answer for the information seeker!

13. What does BING do? Bing understands the meaning of sentences = searchers find answers!

14. looking for RECOMMENDATIONS: bing vs. google

15. Now let’s look at WEB TRAFFIC

16. NEED TO TRANSLATE SEARCH QUERIES INTO CUSTOMER INTENTIONS Source: The World Watch Report

17. CAN WE INFLUENCE SEARCH? YES!

18. with SEO with SEM with digital PR

19. What is SEO? SEO standsfor SEARCH ENGINE OPTIMISATION: processofincreasing the numberof people whovisit your site throughorganicsearch

20. Why is SEO important? JUST LOOK AT THESE NUMBERS!

21. …and these numbers

22. …and these numbers

23. …and these numbers

24. Want to improve your SEO? RESEARCH – Look at whereyour are now OPTIMIZE – Makeeditstoyourpages PROMOTE – Review the network ofpagesthatdeterminesyourrank MEASURE – Continue towatchyourrankings and monitor the bounce rate

25. Top things you can do to improve your SEO 1. WRITE COMPELLING CONTENT buildlinks 2. DECIDE WHICH SINGLE PAGE APPLY TO EACH KEYWORD keeppagesfromcompetingwitheachother bring focus to the page 3. UPDATE ON-PAGE FACTORS focus on titletag, heading, content body, description 4. PROMOTE YOUR PAGE VIA LINKS useeffectiveanchor text internally look for link opportunitiesexternally 5. WATCH YOUR METRICS monitor before and after

26. What’s SEM? Search Engine maximize earnings with useful ads .com drive traffic & maximize ROI Users give them what they want the first time It’s a modelof online advertising in whichadvertiserspayonlyforeach click in theiradsthatdirectssearchersto a specifiedlandingpage on the advertiser’s web site Also known as Pay Per Click Advertising (PPC)

28. Results are immediate and can be adjusted on the fly

29. Easier to track ROI and A/B test

30. Control: can choose which people click to and can run ADs when you want to

31. SEM CONS

32. Can be expensive

33. Lower number of referrals than SEOSEO PROS Perceived as credible Can have a sustained return on traffic Low cost SEO CONS Lots of upfront work Competition Slow to change

34. SEO + SEM = anintegratedapproach Greater awareness of a website created by a paid AD can lead to more natural traffic People are more likely to click on the paid AD of a brand if they’ve seen it listed in the natural results SEO campaigns may prove more cost effective over the long haul, while paid search can provide a more immediate boos in performance Source: Lisa Wehr, iMedia Connection 4.1.08 “Integrated paid search makes dollars and sense.”

35. Digital PR: what’s for?

37. set expectations

39. relate to highly credible web sites

42. BRANDS NEED A SOCIAL MEDIA STRATEGY…WHY?

43. today consumers control the conversation and can potentially murderyour brand! start your own social conversations, passionate communities, extend customer service experience listen learn engage … protect!

44. Now let’s see #3 RULE 3# CUSTOMER DATA IS NOW VALUED AS VITAL ASSET RATHER AS BY-PRODUCT Source: The Luxury Institute

45. PROFILING road map Action Action awareness interest Data Base evaluation commitment repeat Action-oriented segmentation

46. PROSPECT segmentation create the best PURCHASE experience EVER send FOLLOW UP communications to event attendees, configurators-users and information seekers from INTEREST to DESIRE by qualifying the prospect – virtual sales visits, recommendations, multimedia, live chats… find PROSPECTS: web search, media, watch configurators, trade shows, communities, news requesters Build Channel Identify Qualify Nurture Purchase CUSTOMER SERVICE details, involve in communities, keep the interest high

47. CUSTOMER profitability segmentation the length of a customer’s last purchase the ratio of customers retained to the number at risk difference between revenues earned and costs associated with the customer relationship value of future cash flow attributed to the customer relationship the ratio of acquisition spending to the number ot new customers acquired the ratio of retention spending to the number of customers retained

48. BALANCED SCORECARD:organising data financial business opportunities 10% product A 15% product B newchannel marketing revenue mix exclusive club initiatives DM customer customer satisfaction customer retention 95% newproducts /services 1999 – 15% 2000 – 50% % revenue R&D internal Source: www. Balancedscorecard.com

49. WANT SOME CONCRETE IDEAS TO EFFECTIVELY ADDRESS PROSPECTS AND CUSTOMERS?

51. Special Initiatives

52. Up-selling

53. Cross-selling

55. Reengagement Initiatives

56. Product and campaign

57. General

58. Launch

59. Services

61. Automated Lead Follow up from web visits

62. Watch configurator leads from b*******g.com/it get involved

64. Regular NewsletterGOAL 25% Open, 7% CTR MONITOR quote-to- convertion rate GOAL 40% Open, 15% CTR MONITOR quote-to- convertion rate GOAL 35% Open, 18% CTR MONITOR quote-to- convertion rate GOAL 50% Open, 25% CTR MONITOR quote-to- convertion rate

65. MARCOM after SEGMENTATION

66. Now let’s stick to #4 RULE 4# EUROPEAN LUXURY LAUNCHES A REDISIGN OF ITS SERVICE CULTURE Source: The Luxury Institute Many luxury goods firms are busy transforming themselves into services to add value. It’s time to rethink your luxury business model, or invent a new service-oriented offering Source: Anonymous blogger

67. The SERVICES commandments

68. And what about #5 RULE? Source: The Luxury Institute 5# FROM CUSTOMERS ADAPT TO BUSINESS PROCESSES, TO BUSINESS PROCESSES ADAPT TO CUSTOMERS

69. Just think like your CUSTOMERS do Values of brand: uniqueness, relevance, attractiveness, credibility Estimate of customers’ preferences (based on brand equity) Customers’ segmentation (based on customers’ preferences) Action Analyse Query

70. What’s the real essence of all this?

71. AUGMENTED REALITY, VIRTUAL EVENTS, CUSTOMIZED WEB TABS…SOME NEW TOOLS, MODELS AND TECHS SURVIVE AND CHANGE THE WORLD, SOME DON’T. ..

72. SO…LISTEN, BE FLEXIBLE AND INVOLVE“TELL ME AND I’LL FORGET; SHOW ME AND I MAY REMEMBER, INVOLVE ME AND I’LL UNDERSTAND” Source: Chinese proverb