The Changing Mindset of Luxury Consumers

In an age where income inequality has painted an unfavorable portrait of the wealthy, showroom customer mindsets are constantly changing and these changes require a shift in marketing and sales approaches.  For decades, luxury marketing was based on selling limited distribution and appealing to one's aspirational needs.  When a woman carried a Hermes Birkin bag, she wanted to make a status statement.  That's not the case in today's world.  Consumers who buy luxury plumbing and hardware have already achieved a certain status.  They are not looking, or necessarily wanting, to become conspicuously consumptive.  Instead, as Pam Danziger points out, today's luxury consumers are looking for inspiration not aspiration.  Luxury marketing has moved from the classic four Ps of product, place, price and promotion to the four Es -experience, everyplace, exchange and evangelism.

Experience for a decorative plumbing and hardware showroom means more than simply providing outstanding customer service.  That is a given for any consumer willing to pay a premium for products.  Savvy showroom professionals understand that they need to focus on the experiences that decorative plumbing and hardware products can deliver.  These experiences may include the ability to wash away the stresses of the day while having a refuge in their home that provides time-only for themselves, devoid of cellphones, texts, emails and other family members or to simply enjoy the aesthetic beauty of a well designed and specified new bath. 

The concept of everyplace means that consumers engage with your showroom's brand on their terms, on their time and with their agenda.  This does not mean though that you have to sell online either on your website, social media or other venues.  Everyplace may involve walking jobs more often, training installers in your showroom and on the job site, better staging of materials, troubleshooting problems instead of passing them on to manufacturers and representatives or allowing customers to trial test different products.  Everyplace also represents opportunities to differentiate your showroom and approaches from others.  To many luxury consumers, their time is more important and valued than their financial resources.  Demonstrate how you save them time, make the purchasing process easier and ensure desired outcomes.  Brainstorm with your teams why you are different and what you can do to serve your clientele on their terms, time and agenda.

Exchange relates to appreciating the value of things, not just the cost. Value involves the premium you bring to their project and the reasons why a customer should buy from your showroom as opposed to online or the discounter you compete with every day.  Value also involves the value of your customers.  What is the value of a customer's attention, engagement and permission to give you their time?  When you answer those questions, you give your showroom competitive advantages.

Evangelism requires creating a mission and brand experience that is so inspiring to consumers that they engage with you - and subsequently share their enthusiasm with others. What makes evangelism so powerful today is how it marries the oldest form of persuasion - word of mouth - and the newest - social networking.  Evangelism requires inspiring customers and team members with your passion. 

Remember, today's luxury is not a price point but a mindset.