As a business owner in the fashion industry, wealthy and rich people may make up your customer base, but there are differences between these types of buyers. Many individuals think that luxury customers are interchangeable. However, there are many differences to take into account when building a relationship with a luxury customer.
It is important to be aware of how they differ so that you know how to better accommodate each customer. Depending on your fashion brand, you might want to focus on targeting one over the other. This concept may seem complicated at first, but there is no reason for you to stress because I am here to simplify it for you.
We will focus on two categories of luxury customers: conspicuous customers and austere customers.
Conspicuous customers, usually ‘spend to impress’ and connect their shopping habits to their perceived social status. Austere customers instead, despite their ample financial means, do not approach luxury purchases by seeking social validation, and in general, favour their privacy as opposed to more flashy looks.
To help you navigate this content we’ve broken up the article into the following sections:
In this post, we’re going to share 3 tips on how to tell luxury customers apart if you are getting them confused.
- Consider the Lifestyle of Your Customers
- Determine Your Customers’ Reasons for Buying
- Look at How Long Your Customers’ Money Lasts
1. Consider the Lifestyle of Your Customers
The first tip to differentiate luxury buyers is to consider the lifestyle of your customers. Different luxury customers do not have the same priorities. You have to take this into account while interacting with potential customers at your retail store in order to make as many sales as possible.
Austere customers are comfortable with the stage they are at in their lives. You can tell them apart from the rich because even if they are promoted at work in the future and make more money, their lifestyle will not change. Once all of their needs are met, they stop spending money. Therefore, they do not spend as much as conspicuous buyers who will aim more for a spend to impress attitude.
Furthermore, austere luxury customers value the importance of privacy. They live a more secretive life and are less in your face about their purchases. When you are talking to these buyers, it will be helpful to remember that the wealthy like to be discreet and they do everything in their power to not look rich. For instance, during a conversation, they will not actively change the subject to a topic that signals their status, so you should avoid drawing attention to their wealth too.
Potential buyers who look for products that fit their lavish lifestyle are in general more attention-seeking. They may spend money on extravagant houses, fancy cars, and luxurious vacations. It is not a surprise that these individuals also purchase high-end clothing and accessories. Take the time to learn exactly why they entered your retail store and what they desire, so that you can provide the best shopping experience. They may want an item that is a specific style or color. By keeping their lifestyle in mind, you will be able to entice these customers to make a purchase.
For example, a conspicuous buyer comes to your fashion business hoping to find a dress to wear to an elegant dinner party. This buyer does not want to blend into the background during the event. As a result, you decide to bring out intricate and bold dresses that stand out, but are still classy. After trying on all of the options, your buyer chooses one to purchase and leaves your retail store satisfied. It will be beneficial for your fashion brand to show customers multiple dresses and other accessories, so that they can picture your products matching their lifestyle.
2. Determine Your Customers’ Reasons for Buying
Next, you will have an easier time telling wealthy and rich customers apart if you determine their reasons for buying. Wealthy and rich customers do not behave the same. You will be able to distinguish them because of their different spending habits.
Austere customers spend money when they need certain items. They would rather downplay the amount of money they have, so when they purchase a product they tend to keep it to themselves. You will rarely see them post their new items on their social media accounts. If your fashion brand is targeting these customers, you should not make a big deal about how other people will react because they do not enjoy sharing what they bought with everyone they know.
Conspicuous buyers spend their money to attain a high level of social status. They will be looking to buy products in order to impress other people. If your customers seek validation and are always eager to show off what they purchased to their family members, friends, neighbors, co-workers, and anyone else, then they are rich. They will never miss an opportunity to mention their possessions. Therefore, it is crucial for your retail business to emphasize to rich buyers how the clothing and accessories you sell are unique and will be admired by all.
In addition, pricing is a reason for the conspicuous to buy. They want their purchases to signal their status. As a result, they will buy products that cost a lot of money just to prove that they can afford expensive items. Meanwhile, austere customers do not find it necessary to purchase products only for their large price tag.
3. Look at How Long Your Customers’ Money Lasts
The third tip to distinguish luxury buyers is to look at how long their money lasts. You can tell them apart since conspicuous people have high income, but austere people have high net worth.
Austere customers have sustainable wealth. As a result, they are more sensible with their money than the conspicuous. Typically, wealthy individuals have a strong understanding of their finances and know how to manage them effectively. They focus on saving their money and investing it. They might buy real estate or invest in the stock market in order to grow their wealth. Therefore, austere buyers are able to figure out how to support themselves for a long time without having to work, which will give them financial freedom.
On the other hand, customers who are conspicuous may only be affluent for a shorter period of time. Their wealth is not sustainable. Plus they can have a lot of debt. The rich run out of money fast because they concentrate so much on spending it, instead of saving it. Moreover, they are highly dependent on their paychecks for money, so if they lose their job they will no longer be rich. Rich buyers do not have a long-term financial plan in place and could potentially lose everything.
Both austere and conspicuous luxury customers may walk into your retail store looking to buy your products. Your fashion business will be more successful if you comprehend the differences these different luxury buyers. In this article, we went over 3 tips to tell these customers apart if you are getting them confused. The first tip is to consider the lifestyle of your customers. Austere buyers are comfortable with the stage they are at in their lives and do not spend as much as the rich. They are more private about their purchases too. Meanwhile, conspicuous customers buy products that fit their lavish lifestyle and help them stand out.
Second, determine your customers’ reasons for buying. The austere only spend money when it is necessary and do not actively share the items that they buy on social media. They do not compare themselves to others or care about how people view them. On the other hand, the conspicuous spend their money to get social validation and they use the prices of products as a way to signal their wealth.
The third and final tip is to look at how long your customers’ money lasts. Austere customers’ money will last a long period of time because these individuals find ways to grow their wealth, so that they have financial freedom and do not have to stress about their finances. Meanwhile, conspicuous buyers do not have sustainable wealth and spend more money than they save. As a result, they are not as financially secure.