Engaging 50+ Consumers in a Digital World How Luxury Brands Earn Trust Through Online and Offline Channels

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Overview ...... 2

Key Findings ...... 2

50+ Consumers Value Quality and Craftsmanship Over Prestige and Brand Names ...... 3

Luxury 50+ Consumers Find Value in Both Traditional and Digital Media ...... 6

Understanding Data Privacy Will Give Luxury Marketers an Edge ...... 8

Luxury 50+ Consumers Still Gravitate Toward Personal Experiences ...... 10

Digital Channels in the Luxury Market ...... 12

Conclusion ...... 14

Survey Methodology ...... 15

Acknowledgments ...... 16

The 50+ population has $3.6 trillion in annual income, which accounts for 49% of all after-tax income in the U.S.1 So marketers are making a mistake if they shift their entire focus to the shiny penny of millennials, underestimating the value of respectfully building relationships with customers of all ages and of understanding the precious balance between personalization and privacy.

The Forbes Insights/WealthEngine survey of wealthy consumers over 50 indicates that as the technological landscape changes, high-end consumers are cautious, and brands must be attentive to the best ways to embrace technology to interact with their customers and prospects. The survey confirms that people aged 50+ still strongly value offline experiences. Marketing to these consumers requires adjusting and readjusting to the changing digital world and having the flexibility to adapt to consumers’ differing comfort levels with technology. So luxury brand marketers must work to support these high-end consumers throughout the buying process, by integrating on- and offline experiences and understanding the best time, place and manner to inspire and engage.

This consumer segment continues to value traditional and in-person interactions with brands. While attention to digital outreach and engagement is growing, high-end 50+ consumers are not necessarily driven or inspired by digital relationships and new technologies—they are the segment that reminds us people still read direct mail. While they might not be as digitally savvy as their children and grandchildren, they still have more discretionary funds to spend.

Key Findings

Wealthy 50+ consumers assign high value to in-person experiences with brands. With the exception of travel, mature high-end consumers say they would prefer to purchase luxury products in person. This speaks to the ability to have a more tactile experience, one that appeals to the senses, which in turn strengthens the emotional connection to a brand.

While they spend less time on social networks, luxury 50+ consumers are still influenced by referrals from family and friends. Word of mouth is tied (along with direct mail) for the top preferred method for receiving marketing messages about luxury products; eight out of 10 respondents report being willing to promote a brand via word of mouth.

What sways high-end 50+ consumers? Timely messaging and promotional offers. Seven out of 10 survey respondents say that a marketing message prompted them to buy because it was timed to when they wanted or needed to buy the product or service, and just over half purchased the product or service because of a specific promotional offer.

50+ consumers care about their privacy and respectful marketing. Data collection and personalized messaging work when done right. Privacy concerns cause some discomfort here, but survey respondents seem to understand that data sharing is the tradeoff for receiving more relevant and targeted messaging.

1. 2014 Consumer Expenditure Survey, http://www.bls.gov/cex/2014/combined/sage.pdf

2 | Perception Versus Reality 50+ Consumers Value Quality and Craftsmanship Over Prestige and Brand Names Luxury means different things to different people. But one thing is constant—wealthy consumers over the age of 50 expect a lot from the luxury brands in their lives. In this survey, consumers indicate the two most important attributes of a luxury product or service: quality and craftsmanship. Baby boomers (51-70) care for these attributes at a slightly higher rate than older-generation consumers. Attributes like prestige of ownership, brand name, function and price are considerably less important when defining what luxury really means.

When it comes to travel, quality and craftsmanship often Figure 1: What do you consider to be the most impor- mean the property where a visitor stays. “A lot of our cus- tant aspects or attributes of luxury products or services? tomers are looking for a luxury treat. And a vacation rental is a luxury for everyone,” says Mariano Dima, chief marketing Quality 82% officer at HomeAway. “We have more than 4,500 high-end vacation listings in more than 40 countries. Travelers can Craftsmanship be assured that the properties we rent are of premium qual- 66% ity, and they will get a one-of-a-kind vacation experience.” Uniqueness 27% For products like high-end appliances, consumers will Authenticity pay more to get quality and craftsmanship. “Our consum- 23% ers want value,” says Michele Bedard, VP of marketing for Sub-Zero and Wolf. “They want to buy something Function 23% really worth it. They want great appliances that last a lifetime, and they want to know how the appliance will Aesthetics enhance their day-to-day lives and fulfill their dreams.” 22% Prestige of ownership When asked to describe luxury products or services, 19% price matters too. Consumers in this survey primarily Brand/designer/maker name categorize luxury products as expensive (46%). They 17% also consider them to be extraordinary (37%), indulgent (35%) and unique (33%). Though prestige and price are Price 11% not important as features of luxury products, consumers still recognize that they are part of a complete package. Personalization 6%

Travel is the luxury or high-end offering most pur- Location where manufactured or made chased in the last year by the consumers in this survey, 3% followed by apparel, electronic equipment, automobiles, and fine jewelry and watches. 0% 50% 100% n Total respondents

Copyright © 2015 Forbes Insights | 3 When considering how consumers buy luxury prod- Figure 2: Which of the following luxury or high-end ucts, travel is the one category shoppers are most likely products or services have you purchased in the last year? to purchase online instead of in person—64% of overall Travel respondents and 74% of younger baby boomers (51-60) 67% report they would consider purchasing travel online in Apparel the future. The other category this cohort would con- 41% sider purchasing online is electronic equipment. For this segment of consumers, the most popular products Electronic equipment (computer, audio, etc.) or services to purchase in person include automobiles, 36% home furnishings and apparel. Automobile 33%

For all types of luxury products, the survey indicates Fine jewelry and watches a healthy mix of on- and offline interactions beyond 33% simply purchasing the product or service. And while Home furnishings there seems to be an increasing willingness to purchase 27% travel online, marketers know offering a personal touch throughout the buying cycle still matters in this market. Real estate in the United States 16%

“The industry has really evolved,” says Dave Ury, Fine art and antiques senior manager of customer segmentation at Virtuoso. 15%

“Luxury travel is the best fit for an agency model or Personal shopping services / concierge services using travel advisors. People are not just looking for 5% the best price. As itineraries get more sophisticated, Boat the expertise of the travel advisor can add tremendous 2% value and become a differentiator.” Airplane Digital and in-person are both intertwined in the cus- 2% tomer’s buying journey. Online channels provide a lot of Real estate outside the United States value and convenience for consumers—it’s a wonderful 1% place to get inspiration and conduct research. However, 0% 50% 100% it isn’t the only way consumers want to get information or interact with a brand. n Total respondents

“People are not always comfortable buying a personal What is true for jewelry is true for high-end appliances item like jewelry online,” says Donna Bouchard, vice as well—some form of personal or in-person experience president at Hamilton Jewelers. “Jewelry is such a state- is necessary to help consumers get a feel for the product. ment of individual style and personality, it requires the “Consumers tell us that they really need to see the appli- merchant to tell a great brand story in the digital envi- ances in person before buying them,” says Sub-Zero’s ronment. Many of our consumers click-to-chat or call Bedard. “They visit our retailers or one of our show- guest services and ask for additional photos and maybe rooms. They get to see which appliance would be more to see the piece on a person.” suitable for their kitchen and for their lifestyle.”

4 | Perception Versus Reality How do 50+ customers like to interact with luxury Figure 3: Which of the following luxury products or brands to get information about the product or service? services would you consider purchasing at some point In person takes the top spot: 44% rank in person in a in the future? In which setting? retail location as the number one choice, and 25% rank Travel it as their number two choice. In person via a private 64% 35% consultation (19%) is the second most popular preference Apparel for interacting with the brand. 28% 54%

Interestingly, three other offline choices do not rank Electronic equipment (computer, audio, etc.) 35% 42% high in consumers’ number one spot, but do rank high as the second choice for many—word of mouth (16% rank Automobile this number two versus 8% number one), personal con- 9% 64% nection to the brand, such as a friend or family member Boat who is a trusted employee (13% number two versus 7% 1% 14% number one), and telephone (11% number two versus 4% Airplane number one). This is evidence that even as luxury brand 4% 7% marketers need to keep an eye on opportunities to reach prospects and customers digitally, in-person interactions Real estate in the United States 2% 35% and experiences are still a key part of where customers find value. Real estate outside the United States 1% 11%

Fine jewelry and watches 11% 50%

Fine art and antiques 7% 35%

Home furnishings 18% 53%

n Online n In Person

The dance between on- and offline engagement is evi- Of note for marketers: email can be problematic for dent in how wealthy consumers over 50 prefer to receive reaching people over the age of 50 and for building a marketing and advertising messages. Word of mouth wins customer base around these demographics. Only 17% of the top spot, with 48% of respondents ranking this in their the survey respondents rank receiving marketing email top three choices. This is followed closely by both online from known brands or retailers in their top three pref- search (47%) and visiting a known brand or retailer web- erences, and just 8% rank in their top three receiving site directly (46% choose this as one of their top three). The marketing emails from new or previously unknown next most popular ways consumers like to receive marketing messages is print or via direct mail from a known brand or retailer (33% include each of these in their top three). The lack of desire to receive email, even All survey respondents were over the age of 50 and, therefore, not digital natives. So it is no surprise they from known and trusted luxury brands, exhibit a preference for more traditional marketing strongly suggests the necessity for creativ- methods—word of mouth and direct mail. Luxury ity and innovation in email messaging. brand marketers who understand how the 50+ generations engage with brands online will gain a competitive edge in the marketplace. brands. This latter data point highlights the traditional difficulty in reaching new markets.

Luxury brand marketers who understand The lack of desire to receive email, even from known and trusted luxury brands, strongly suggests the neces- how the 50+ generations engage with sity for creativity and innovation in email messaging brands online will gain a competitive edge and paying attention to permissions and opt-in during in the marketplace. the offline experience. This can enable luxury brands to effectively support the customer offline while providing valuable dialogue online.

“About 30% of our marketing is digital,” says Hamilton Even though digital channels are not yet the preferred Jewelers’ Bouchard. “The rest is traditional. We have a format for wealthy 50+ consumers, this cohort defi- very good response rate to direct mail. It’s expensive, nitely responds to the marketing messages they receive but we do a lot of modeling and profiling of our clients across a variety of channels, confirming there is value and prospects before sending.” for brand marketers in getting the message out.

“We have a cross-channel social media strategy where When asked if they have ever purchased a luxury each platform plays a major role,” says Anne Marie product or service based on information received via Gianutsos, head of digital at Houlihan Lawrence Real a marketing message from the brand or retailer (such Estate. “We also have a print magazine and recently as a digital ad on a website, an email from the brand started publishing different versions of it.” or retailer, direct mail piece, television ad, etc.), just

6 | Perception Versus Reality Figure 4: What was it about the information you type of messaging failed to inspire wealthy consumers received through marketing that prompted you to buy? to purchase. The timing of the marketing message matched when I wanted/needed to buy The survey does, however, provide insight into why con- 68% sumers over 50 did respond to the messaging. Overall, the The marketing message included a specific offer (such as a most effective marketing messages for this segment are discount or added value) that appealed to me those that were timed to when someone was actively in the 52% market for buying that product (68%), followed by a specific The marketing message was personalized for me specifically offer such as a discount or added value (52%). Consumers based on past purchases or relationship with the brand or retailer 71-80 find these two methods the most effective of any of 27% the respondents—83% because of timing of the message The marketing message was targeted to me in general and 61% due to a specific offer. This confirms the value (i.e., location, occupation, income level, hobby, etc.) of big data. Communicating with this market requires the 26% ability to create sophisticated segmentation and targeting— The marketing message appealed to my sense of brand loyalty simple demographic information won’t cut it. 22% Marketers find themselves in a world where they need The marketing message was targeted to me based on life stage (i.e., graduation, wedding, pregnancy, etc.) more data to be truly effective, but they often have to 9% struggle to find the balance between personalization and general concerns about privacy. The fact that half The marketing message appealed to my sense of wanting to belong 4% these wealthy consumers responded to marketing messaging validates that consumers truly do find value when 0% 50% 100% they can trust marketers to collect, analyze and properly use the data they have access to. As Virtuoso’s Ury says, n Total respondents “Trust is required, and trust must be earned.”

under half (43%) say yes—8% say the purchase was based solely on the marketing they received, and The most effective marketing messages for 35% say they purchased primarily based on that mes- this segment are those that were timed to sage, but also used other sources to help make the when someone was actively in the market buying decision. for buying that product (68%), followed Forty percent of the respondents, however, say they had by a specific offer such as a discount not bought any luxury products based on the marketing or added value (52%). message received. There are potentially many reasons for this, such as poor segmentation or timing of the message, or lack of clarity in the message itself. However, the survey data does not unpack specific reasons that this It is noteworthy that not every piece of data is the same in the mind of consumers. While the timing of the marketing message was valuable for wealthy consumers, “About 30% of our marketing is digital. The rest appealing to the sense of belonging and life stage were is traditional. We have a very good response rate the least effective targeting methods. General targeting, to direct mail. It’s expensive, but we do a lot of brand loyalty and personalization, while effective, did modeling and profiling of our clients and not seem to make as big an impression with this cohort. prospects before sending.” Because this survey includes only consumers over the age of 50, this validates what smart brands already DONNA BOUCHARD understand about mature consumers—they want a value Vice President, Hamilton Jewelers exchange that speaks to them.

Wealthy 50+ consumers accept data collection by lux- Figure 5: How do you feel about the fact that luxury ury brands as necessary because it’s become an industry brands and retailers collect data about you as an standard. When asked how they feel about the fact that individual that they then use for marketing purposes? luxury brands and retailers collect data about them I do not like it, as I have strong concerns about data privacy for marketing purposes, there’s certainly not an over- 21% whelmingly positive response. Almost two-thirds (61%) are generally okay with it, and 39% report that they def- I don’t mind as long as I have opted to share with them initely do not like it. 21% I do not like it, as I want to keep all my information private The older cohort (71+) has the most privacy concerns. 18%

They are much less thrilled than the overall respondents I am okay with it, as long as brands are responsible and do with sharing data: 22% of respondents 71-80 and 35% of not share the data with anyone outside the company those over 81 report wanting to keep all their informa- 17%

tion private, versus 18% of the overall respondents. I am okay with it, but I do sometimes have concerns about how brands use my data and/or share this data with other companies There is no clear mandate from wealthy 50+ consumers 11%

here. The top four answers are clustered together. Those I’m okay with it as long as it doesn’t feel invasive who answer that they don’t like data collection because 11% of data privacy concerns are tied with those who say I like it, as it is the only way for brands to truly personalize they don’t mind, as long as they opted into sharing the products, services and messaging for me data. Those respondents who are okay with this as long 1% as brands are responsible and don’t share the data are tied with those who don’t like it at all and would prefer to 0% 50% 100% keep all their information private. n Total respondents

relationships will see positive results. For their part, high- The fact that the answers are all over the end consumers seem willing to trade their own data when board suggests that luxury brands need they trust the brand and understand how it adds value to to tread lightly in this territory and will win the relationship. But that trust could erode quickly if a company uses the data in a way that makes consumers customers when they get it right. uneasy or in the case of something as dire as a data breach.

“We use a targeted approach,” says Trish Kaliciak, mar- The fact that the answers are all over the board suggests keting director at Butterfield & Robinson. “We work to that luxury brands need to tread lightly in this territory deliver the right message to the right person, and to do and will win customers when they get it right. Luxury that at a pace that doesn’t cause them to disengage. We brand marketers who are using data intelligence about have a very solid database that we started taking care of their customers and prospects to build trust and create before big data marketing came along.”

8 | Perception Versus Reality building relationships and communicating with existing customers. Because even in this digital age, it is still less expensive to nurture current customers than to acquire High-end consumers seem willing to trade new ones. their own data when they trust the brand and understand how it adds value to “The overall cost to acquire a customer continues to increase,” says Phil Koserowski, vice president of inter- the relationship. active marketing at The Leading Hotels of the World. “And digital marketing is a place where we can be efficient and where it’s easier to acquire customers and “This spring we did a digital campaign and partnered measure the activities.” with a new ad tech partner, which got smarter as it ran,” says Houlihan Lawrence’s Gianutsos. “We could tell “One thing we do get excited about with digital is the when someone interacted, when they scheduled show- ability to track the acquisition of new business,” says ings or contacted agents. It kept personal information Butterfield & Robinson’s Kaliciak. “It’s a chance to anonymous, but provided robust insights about people know what it costs to get a person through the door for who are most likely to submit an online lead.” the first time and learn what activities are working, so we can do more of them.” When considering unsolicited email and direct mail, 88% of those surveyed say they get more email and direct mail now than they did five years ago, and 85% say “The overall cost to acquire a customer continues they receive a lot (five or more per week). Drilling down to increase. And digital marketing is a place where to how people feel about this, we see more evidence of we can be efficient and where it’s easier to acquire the need to find the right balance between information customers and measure the activities.” sharing and value. A quarter (24%) of the respondents feel the seeming proliferation of email is simply an indi- PHIL KOSEROWSKI cation that the brand likes to be in front of consumers Vice President, Interactive Marketing, The Leading Hotels of the World as much as possible, 21% say it makes them not want to do business with the brand, and 18% think the excessive number of emails means that the brand doesn’t understand what type of messaging works for them. Through experience, established businesses have learned the value of the data they collect. New companies have About half of wealthy consumers over 50 (53%) do not to collect and analyze data from the start. distinguish between unsolicited email and direct, physical mail, and the other half (47%) do. For those who do think “We’re a relatively young company,” says Howard there is a difference, most are either used to getting unso- Leyda, vice president of marketing at Coravin, Inc., licited mail (47%) or like it better than email (33%). This makers of a unique wine access system. “When we finding is likely led by the fact that these older wealthy launched the product, we targeted the people we consumers are more accustomed to physical mail. thought would be early adopters—high net worth individuals, passionate about wine. Income tends to be No matter what consumers feel about unsolicited mes- a big determiner of whether or not you can be an early sages or how much they understand about what is going adopter. We want to create a trend and move the mar- on behind the scenes, marketers know the value of ket along with us, like Apple did.”

The luxury segment is still very much about the personal touch it provides to loyal customers—wealthy consumers over the age of 50 like to interact in person with luxury brands. And they do seem to understand and appreciate that their personal data adds value to the relationship. Yet, while they like the personal touch in real life, they are not yet as keen on it in marketing messages they receive.

“Mass marketing may be less effective,” says Virtuoso’s “We do not personalize all our digital messages— Ury. “This is a very high touch audience—phone call, there are times it is out of place,” says Butterfield email or direct message on social media, one-on-one & Robinson’s Kaliciak. “We personalize a message in person.” when we are following up on something. But personalization for the sake of it rings false with this market. When asked how they feel receiving a personalized mes- It’s a fine line. We have to ask ourselves—as a luxury sage (such as one addressed to them by name or referring brand, does it feel right? It may convert at a great rate, to specific information like a birthday or recent pur- but at what expense?” chase), consumers don’t really like it, because it’s a reminder of more personal information the company “At the end of the day, we want to be as personal and has about them, which can make them uncomfort- relevant in our communications with customers as able (42%). However, the next highest response (34%) possible,” says The Leading Hotels of the World’s is from consumers who don’t typically pay attention to Koserowski. “We look at this as a journey. We want a marketing messages, so personalization doesn’t make a single view of the customer and to know where they are difference there. in the journey. That enables us to communicate with them in a one-to-one manner, and our customers are responsive to that.” “Mass marketing may be less effective. This When asked how comfortable they are sharing their is a very high touch audience—phone call, information with brands, 38% of the wealthy consum- email or direct message on social ers over 50 in this survey respond that they feel neutral media, one-on-one in person.” and 24% report being uncomfortable. Seventeen percent report never sharing information with companies. Only DAVE URY Senior Manager, Customer Segmentation, one in 10 say that they feel comfortable (10%) or very Virtuoso comfortable (2%).

To feel more comfortable about sharing data, these gen- Once again, there is not a clear mandate from this seg- erations appreciate transparency. “Let me see the data ment, suggesting that luxury brand marketers who they have about me and edit it or limit the information invest in experience and show respect for consumer the company shares going forward” is a sentiment shared choice in their messaging will come out on top. by just under half of those surveyed (40%) as well as “be

10 | Perception Versus Reality transparent about it—tell me how they use the data and younger (51-70) to say that nothing would make them who they share it with” (37%). Almost a quarter reported comfortable with this kind of data collection. that nothing would make them more comfortable. Privacy and data security remain sticky points for this mar- Consumers are equally uncomfortable knowing that ket. There is no evidence of an overwhelming hostility brands collect and aggregate data from different sources toward the collection and use of data. Yet the very lack of (such as demographics, visits to brand websites or stores, consensus makes it clear that marketers need to pay close third-party websites, etc.). Fifty-four percent report attention to this issue. It also suggests that with the right data some level of discomfort (32% uncomfortable and 22% and security policies, brands have an opportunity to really very uncomfortable), and 35% say they feel neutral. This take the lead in the eyes of wealthy consumers. strongly suggests that brands that are transparent and discreet when collecting data and implementing insights from the data can gain an advantage.

When asked what companies could do to make them feel There is no evidence of an overwhelming more comfortable, respondents are evenly split. A third hostility toward the collection and don’t think that anything will make them feel comfortable, a third want the brand to be transparent about the use of data. data they collect, and a third want the ability to edit or limit the amount of information the brand can collect. The older cohort (71+) is much more likely than the

Not surprisingly, this survey indicates members of the No matter how they interact with the brand, experi- 50+ generations are not leading the way interacting ence is important for the luxury segment. Two-thirds with brands on social media. Nine out of 10 respon- of wealthy consumers have had a positive, customized dents (90%) report that they have not engaged the experience with a brand or retailer that caused them to brand on a social media site (including tweeting using a become a long-term customer and/or to recommend it brand hashtag, liking or sharing a brand’s page or post, to others. or posting a review) in the last six months. This lack of engagement is no doubt due to the fact that this demographic group is much less likely to use social media as a preferred method of communication. By far, what wealthy 50+ consumers are most willing to do to promote a brand is Younger baby boomers (51-60) are slightly more likely share via word of mouth (84%). A distant (16% versus 10% overall) than any other age group to have interacted with a brand via social media. It is second (21%) for this segment is writing expected that as digital natives move in greater num- reviews on the brand website or a bers into the luxury market, this picture of social media third-party review site. engagement will likely change dramatically and quickly. Brands that develop expertise engaging with consumers via social media now will be well positioned to take advantage of this as the market demographics shift. “Over the years, our company has evolved our thinking about marketing,” says Houlihan Lawrence’s Gianutsos. “The messages are experience-driven and lifestyle- focused. That is our overall marketing philosophy Brands that develop expertise engaging regardless of media.”

with consumers via social media now will By far, what wealthy 50+ consumers are most willing be well positioned to take advantage of this to do to promote a brand is share via word of mouth as the market demographics shift. (84%). A distant second (21%) for this segment is writing reviews on the brand website or a third-party review site. However, marketers can likely expect this tendency to interact digitally to grow as digital natives enter the Today marketers are caught in the middle of this chang- market in higher numbers and younger boomers con- ing landscape. They must balance the needs and desires tinue to gain comfort with this form of engagement. of the older cohort of the luxury segment with those of Third place was choosing to become part of a customer the younger crowd, take advantage of the unique bene- advisory group (19%). fits of digital technologies to segment, reach and engage audiences, and at the same time, be true to the brand Given the traditional inclinations of this older con- and its promise. sumer segment, the tendency toward word of mouth at the expense of digital formats is not a surprise. But For those who did not engage online, the strongest rea- it does confirm the value for luxury marketers in pro- son was because they don’t use social media (45%) or viding customized experiences, both on- and offline, to have no interest in being part of an online brand com- move past satisfying their customers to truly delighting munity (40%). and inspiring them, and then encouraging them to share that experience with others.

12 | Perception Versus Reality “Consumers interact with our brand at their convenience, first and foremost,” says Virtuoso’s Ury. “There is definitely a generational component to how we choose to interact with customers. We are using social media more and more, though most high-end consumers tend to skew older.”

“How our customers prefer to interact with us varies based on who the customer is and the intent of their trip,” says The Leading Hotels of the World’s Koserowski. “We have sales offices around the world, where we speak to our customers on the phone frequently. We definitely see more people booking online and through mobile devices. We also have many guests who prefer to book through professional travel advisors—they might not book through the website, but it is a huge driver—it’s where they do their dreaming.”

“Our current market is males over the age of 60 or so,” says Coravin’s Leyda. “They are affluent, live a true luxury lifestyle and tend to collect wine. Our strategy is to get into the millennial market. They have already adopted the luxury lifestyle even if they aren’t really there yet. Facebook is a primary consumer channel for us, and Instagram has been growing.”

“We have a very digital first approach, naturally, since our company is an e-commerce company,” says HomeAway’s Dima. “Social is one of the areas we find to be very impact- ful for us. That is the nature of people who love luxury—they spend a lot of time looking at it and liking it on social media.”

“Our clientele are mostly boomers. Social media has not always been part of their lives,” says Butterfield & Robinson’s Kaliciak. “There is some uptick, and social media is inter- esting for brand awareness. But sites like Facebook, Twitter or Pinterest can be hard for us to measure.”

“Being the caretaker of an established luxury brand car- empowers us is a strong sense of the segments we market ries with it a lot of responsibility,” says Butterfield & to. We think—what makes sense for the people we are Robinson’s Kaliciak. trying to reach?”

Marketing luxury brands to wealthy consumers over 50 It is also clear to luxury marketers that communicating is a balancing act. Luxury marketers are acutely aware effectively with wealthy 50+ individuals throughout the of this. As advances in technology change the mar- buying process is not only about having the right mes- keting landscape and how all consumers interact with sage across touch points, creating relevant segments or brands, luxury marketers are also faced with increasing striking the right tone of personalization. amounts of data about their prospects and customers and the changing demographics of their audience. “It’s about the stories and experiences and the expecta- tions the product fulfills,” says The Leading Hotels of the “As marketers of a luxury product, we have a drive to World’s Koserowski. “It’s about using insights to delight be first, but are constantly balancing that with doing customers and supercharge the experience. And it’s about it well,” says Houlihan Lawrence’s Gianutsos. “What being a customer advocate throughout the whole process.”

14 | Perception Versus Reality Survey Methodology Survey of 462 American adults over the age of 50

Education level Age 2% High school graduate or equivalent 34% Ages 51-60 7% Some college, did not graduate 41% Ages 61-70 1% Completed trade or vocational school 21% Ages 71-80 34% College degree 5% Ages 81+ 30% Master’s degree 26% Doctorate Investable Assets 7% Under $1 million Source of wealth 36% $1 million – $5 million 45% Income from working at executive 29% $5 million – $10 million level in a business owned by others 13% $10 million – $25 million 26% Income from owning my own busi- 4% $25 million – $50 million ness or businesses 3% $50 million – $100 million 3% Proceeds from selling a business or 4% $100 million – $500 million businesses 4% $500 million+ 4% Income or proceeds from real estate 11% Income or proceeds from bonds and stock market investments Disposable Income 4% Inherited family wealth 8% $50K – $100K 7% Other 12% $100K – $250K 56% $250K – $500K 21% $500K+ Gender 2% Unable to rate 66% Male 33% Female

Net Worth 27% $1 million – $5 million 32% $5 million – $10 million 20% $10 million – $25 million 8% $25 million – $50 million 2% $50 million – $100 million 3% $100 million – $500 million 5% $500 million+ 3% Prefer not to answer

Forbes Insights and WealthEngine would like to thank the following individuals for their time and expertise:

Michele Bedard, Vice President, Marketing, Sub-Zero and Wolf

Donna Bouchard, Vice President, Hamilton Jewelers

Mariano Dima, Chief Marketing Office, HomeAway

Anne Marie Gianutsos, Head of Digital, Houlihan Lawrence Real Estate

Trish Kaliciak, Marketing Director, Butterfield & Robinson

Phil Koserowski, Vice President, Interactive Marketing, The Leading Hotels of the World

Howard Leyda, Vice President of Marketing, Coravin, Inc.

Dave Ury, Senior Manager, Customer Segmentation, Virtuoso

16 | Perception Versus Reality ABOUT FORBES INSIGHTS

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