Engaging 50+ ConsumErs in a Digital WorlDimages.forbes.com/forbesinsights/StudyPDFs/WealthEngine_EngagingConsumers_REPORT.pdf2 | pErCEptioN VErSUS rEALity The 50+ population has $3.6

Engaging 50+ ConsumErs in a Digital WorlDHoW luxury BranDs Earn trust tHrougH onlinE anD offlinE CHannEls

in PartnErsHiP WitH:

Copyright © 2015 Forbes InsIghts | 1

ContEnts

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

2 | pErCEptioN VErSUS rEALity

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 land-scape 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 hav-ing 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 dig-ital 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.

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

ovErviEW

KEy finDings


When it comes to travel, quality and craftsmanship often mean the property where a visitor stays. “A lot of our cus-tomers are looking for a luxury treat. And a vacation rental is a luxury for everyone,” says Mariano Dima, chief marketing officer at HomeAway. “We have more than 4,500 high-end vacation listings in more than 40 countries. Travelers can be assured that the properties we rent are of premium qual-ity, and they will get a one-of-a-kind vacation experience.”

For products like high-end appliances, consumers will pay more to get quality and craftsmanship. “Our consum-ers want value,” says Michele Bedard, VP of marketing for Sub-Zero and Wolf. “They want to buy something really worth it. They want great appliances that last a lifetime, and they want to know how the appliance will enhance their day-to-day lives and fulfill their dreams.”

When asked to describe luxury products or services, price matters too. Consumers in this survey primarily categorize luxury products as expensive (46%). They also consider them to be extraordinary (37%), indulgent (35%) and unique (33%). Though prestige and price are not important as features of luxury products, consumers still recognize that they are part of a complete package.

Travel is the luxury or high-end offering most pur-chased in the last year by the consumers in this survey, followed by apparel, electronic equipment, automobiles, and fine jewelry and watches.

50+ ConsumErs valuE Quality anD CraftsmansHiP ovEr PrEstigE anD BranD namEs

Quality

Craftsmanship

Uniqueness

Authenticity

Function

Aesthetics

Prestige of ownership

Brand/designer/maker name

Price

Personalization

Location where manufactured or made

FIgure 1: What do you consider to be the most impor-tant aspects or attributes of luxury products or services?

82%

66%

27%

23%

23%

22%

19%

17%

11%

6%

3%

n total respondents

0% 50% 100%

Luxury means different things to different people. But one thing is constant—wealthy con-sumers 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, func-tion and price are considerably less important when defining what luxury really means.


When considering how consumers buy luxury prod-ucts, travel is the one category shoppers are most likely to purchase online instead of in person—64% of overall respondents and 74% of younger baby boomers (51-60) report they would consider purchasing travel online in the future. The other category this cohort would con-sider purchasing online is electronic equipment. For this segment of consumers, the most popular products or services to purchase in person include automobiles, home furnishings and apparel.

For all types of luxury products, the survey indicates a healthy mix of on- and offline interactions beyond simply purchasing the product or service. And while there seems to be an increasing willingness to purchase travel online, marketers know offering a personal touch throughout the buying cycle still matters in this market.

“The industry has really evolved,” says Dave Ury, senior manager of customer segmentation at Virtuoso. “Luxury travel is the best fit for an agency model or using travel advisors. People are not just looking for the best price. As itineraries get more sophisticated, the expertise of the travel advisor can add tremendous value and become a differentiator.”

Digital and in-person are both intertwined in the cus-tomer’s buying journey. Online channels provide a lot of value and convenience for consumers—it’s a wonderful place to get inspiration and conduct research. However, it isn’t the only way consumers want to get information or interact with a brand.

“People are not always comfortable buying a personal item like jewelry online,” says Donna Bouchard, vice president at Hamilton Jewelers. “Jewelry is such a state-ment of individual style and personality, it requires the merchant to tell a great brand story in the digital envi-ronment. Many of our consumers click-to-chat or call guest services and ask for additional photos and maybe to see the piece on a person.”

What is true for jewelry is true for high-end appliances as well—some form of personal or in-person experience is necessary to help consumers get a feel for the product. “Consumers tell us that they really need to see the appli-ances in person before buying them,” says Sub-Zero’s Bedard. “They visit our retailers or one of our show-rooms. They get to see which appliance would be more suitable for their kitchen and for their lifestyle.”

Travel

Apparel

Electronic equipment (computer, audio, etc.)

Automobile

Fine jewelry and watches

Home furnishings

Real estate in the United States

Fine art and antiques

Personal shopping services / concierge services

Boat

Airplane

Real estate outside the United States

FIgure 2: Which of the following luxury or high-end products or services have you purchased in the last year?

67%

41%

36%

33%

33%

27%

16%

15%

5%

2%

2%

1%

n total respondents

0% 50% 100%


How do 50+ customers like to interact with luxury brands to get information about the product or service? In person takes the top spot: 44% rank in person in a retail location as the number one choice, and 25% rank it as their number two choice. In person via a private consultation (19%) is the second most popular preference for interacting with the brand.

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

FIgure 3: Which of the following luxury products or services would you consider purchasing at some point in the future? In which setting?

n online n in person

Travel

Apparel

Electronic equipment (computer, audio, etc.)

Automobile

Boat

Airplane

Real estate in the United States

Real estate outside the United States

Fine jewelry and watches

Fine art and antiques

Home furnishings

64%

28%

35%

9%

1%

4%

2%

1%

11%

7%

18%

35%

54%

42%

64%

14%

7%

35%

11%

50%

35%

53%


The dance between on- and offline engagement is evi-dent in how wealthy consumers over 50 prefer to receive marketing and advertising messages. Word of mouth wins the top spot, with 48% of respondents ranking this in their top three choices. This is followed closely by both online search (47%) and visiting a known brand or retailer web-site directly (46% choose this as one of their top three). The next most popular ways consumers like to receive market-ing messages is print or via direct mail from a known brand or retailer (33% include each of these in their top three).

All survey respondents were over the age of 50 and, therefore, not digital natives. So it is no surprise they exhibit a preference for more traditional marketing methods—word of mouth and direct mail. Luxury brand marketers who understand how the 50+ genera-tions engage with brands online will gain a competitive edge in the marketplace.

Luxury brand marketers who understand how the 50+ generations engage with

brands online will gain a competitive edge in the marketplace.

“About 30% of our marketing is digital,” says Hamilton Jewelers’ Bouchard. “The rest is traditional. We have a very good response rate to direct mail. It’s expensive, but we do a lot of modeling and profiling of our clients and prospects before sending.”

“We have a cross-channel social media strategy where each platform plays a major role,” says Anne Marie Gianutsos, head of digital at Houlihan Lawrence Real Estate. “We also have a print magazine and recently started publishing different versions of it.”

Of note for marketers: email can be problematic for reaching people over the age of 50 and for building a customer base around these demographics. Only 17% of the survey respondents rank receiving marketing email from known brands or retailers in their top three pref-erences, and just 8% rank in their top three receiving marketing emails from new or previously unknown

brands. This latter data point highlights the traditional difficulty in reaching new markets.

The lack of desire to receive email, even from known and trusted luxury brands, strongly suggests the neces-sity for creativity and innovation in email messaging and paying attention to permissions and opt-in during the offline experience. This can enable luxury brands to effectively support the customer offline while providing valuable dialogue online.

Even though digital channels are not yet the preferred format for wealthy 50+ consumers, this cohort defi-nitely responds to the marketing messages they receive across a variety of channels, confirming there is value for brand marketers in getting the message out.

When asked if they have ever purchased a luxury product or service based on information received via a marketing message from the brand or retailer (such as a digital ad on a website, an email from the brand or retailer, direct mail piece, television ad, etc.), just

luxury 50+ ConsumErs finD valuE in BotH traDitional anD Digital mEDia

the lack of desire to receive email, even from known and trusted luxury brands,

strongly suggests the necessity for creativ-ity and innovation in email messaging.


under half (43%) say yes—8% say the purchase was based solely on the marketing they received, and 35% say they purchased primarily based on that mes-sage, but also used other sources to help make the buying decision.

Forty percent of the respondents, however, say they had not bought any luxury products based on the marketing message received. There are potentially many reasons for this, such as poor segmentation or timing of the mes-sage, or lack of clarity in the message itself. However, the survey data does not unpack specific reasons that this

type of messaging failed to inspire wealthy consumers to purchase.

The survey does, however, provide insight into why con-sumers over 50 did respond to the messaging. Overall, the most effective marketing messages for this segment are those that were timed to when someone was actively in the market for buying that product (68%), followed by a specific offer such as a discount or added value (52%). Consumers 71-80 find these two methods the most effective of any of the respondents—83% because of timing of the message and 61% due to a specific offer. This confirms the value of big data. Communicating with this market requires the ability to create sophisticated segmentation and targeting—simple demographic information won’t cut it.

Marketers find themselves in a world where they need more data to be truly effective, but they often have to struggle to find the balance between personalization and general concerns about privacy. The fact that half these wealthy consumers responded to marketing mes-saging validates that consumers truly do find value when they can trust marketers to collect, analyze and properly use the data they have access to. As Virtuoso’s Ury says, “Trust is required, and trust must be earned.”

the most effective marketing messages for this segment are those that were timed to when someone was actively in the market

for buying that product (68%), followed by a specific offer such as a discount

or added value (52%).

It is noteworthy that not every piece of data is the same in the mind of consumers. While the timing of the mar-keting message was valuable for wealthy consumers, appealing to the sense of belonging and life stage were the least effective targeting methods. General targeting, brand loyalty and personalization, while effective, did not seem to make as big an impression with this cohort. Because this survey includes only consumers over the age of 50, this validates what smart brands already understand about mature consumers—they want a value exchange that speaks to them.

The timing of the marketing message matched when I wanted/needed to buy

The marketing message included a specific offer (such as a discount or added value) that appealed to me

The marketing message was personalized for me specifically based on past purchases or relationship with the brand or retailer

The marketing message was targeted to me in general (i.e., location, occupation, income level, hobby, etc.)

The marketing message appealed to my sense of brand loyalty

The marketing message was targeted to me based on life stage (i.e., graduation, wedding, pregnancy, etc.)

The marketing message appealed to my sense of wanting to belong

FIgure 4: What was it about the information you received through marketing that prompted you to buy?

n total respondents

0% 50% 100%

68%

52%

27%

26%

22%

9%

4%

“About 30% of our marketing is digital. The rest is traditional. We have a very good response rate to direct mail. It’s expensive, but we do a lot of

modeling and profiling of our clients and prospects before sending.”

DoNNA BoUChArDVice president,

hamilton Jewelers


Wealthy 50+ consumers accept data collection by lux-ury brands as necessary because it’s become an industry standard. When asked how they feel about the fact that luxury brands and retailers collect data about them for marketing purposes, there’s certainly not an over-whelmingly positive response. Almost two-thirds (61%) are generally okay with it, and 39% report that they def-initely do not like it.

The older cohort (71+) has the most privacy concerns. They are much less thrilled than the overall respondents with sharing data: 22% of respondents 71-80 and 35% of those over 81 report wanting to keep all their informa-tion private, versus 18% of the overall respondents.

There is no clear mandate from wealthy 50+ consumers here. The top four answers are clustered together. Those who answer that they don’t like data collection because of data privacy concerns are tied with those who say they don’t mind, as long as they opted into sharing the data. Those respondents who are okay with this as long 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 keep all their information private.

the fact that the answers are all over the board suggests that luxury brands need

to tread lightly in this territory and will win customers when they get it right.

The fact that the answers are all over the board suggests that luxury brands need to tread lightly in this territory and will win customers when they get it right. Luxury brand marketers who are using data intelligence about their customers and prospects to build trust and create

relationships will see positive results. For their part, high-end consumers seem willing to trade their own data when they trust the brand and understand how it adds value to the relationship. But that trust could erode quickly if a company uses the data in a way that makes consumers uneasy or in the case of something as dire as a data breach.

“We use a targeted approach,” says Trish Kaliciak, mar-keting director at Butterfield & Robinson. “We work to deliver the right message to the right person, and to do that at a pace that doesn’t cause them to disengage. We have a very solid database that we started taking care of before big data marketing came along.”

unDErstanDing Data PrivaCy Will givE luxury marKEtErs an EDgE

I do not like it, as I have strong concerns about data privacy

I don’t mind as long as I have opted to share with them

I do not like it, as I want to keep all my information private

I am okay with it, as long as brands are responsible and do not share the data with anyone outside the company

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

I’m okay with it as long as it doesn’t feel invasive

I like it, as it is the only way for brands to truly personalize products, services and messaging for me

FIgure 5: How do you feel about the fact that luxury brands and retailers collect data about you as an individual that they then use for marketing purposes?

21%

21%

18%

17%

11%

11%

1%

n total respondents

0% 50% 100%


high-end consumers seem willing to trade their own data when they trust the brand

and understand how it adds value to the relationship.

“This spring we did a digital campaign and partnered with a new ad tech partner, which got smarter as it ran,” says Houlihan Lawrence’s Gianutsos. “We could tell when someone interacted, when they scheduled show-ings or contacted agents. It kept personal information anonymous, but provided robust insights about people who are most likely to submit an online lead.”

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 they receive a lot (five or more per week). Drilling down to how people feel about this, we see more evidence of the need to find the right balance between information sharing and value. A quarter (24%) of the respondents feel the seeming proliferation of email is simply an indi-cation that the brand likes to be in front of consumers 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 under-stand what type of messaging works for them.

About half of wealthy consumers over 50 (53%) do not distinguish between unsolicited email and direct, physical mail, and the other half (47%) do. For those who do think there is a difference, most are either used to getting unso-licited mail (47%) or like it better than email (33%). This finding is likely led by the fact that these older wealthy consumers are more accustomed to physical mail.

No matter what consumers feel about unsolicited mes-sages or how much they understand about what is going on behind the scenes, marketers know the value of

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 new ones.

“The overall cost to acquire a customer continues to increase,” says Phil Koserowski, vice president of inter-active marketing at The Leading Hotels of the World. “And digital marketing is a place where we can be effi-cient and where it’s easier to acquire customers and measure the activities.”

“One thing we do get excited about with digital is the ability to track the acquisition of new business,” says Butterfield & Robinson’s Kaliciak. “It’s a chance to know what it costs to get a person through the door for the first time and learn what activities are working, so we can do more of them.”

“The overall cost to acquire a customer continues to increase. And digital marketing is a place where we can be efficient and where it’s easier to acquire

customers and measure the activities.”

phiL KoSEroWSKiVice president, interactive Marketing,

the Leading hotels of the World

Through experience, established businesses have learned the value of the data they collect. New companies have to collect and analyze data from the start.

“We’re a relatively young company,” says Howard Leyda, vice president of marketing at Coravin, Inc., makers of a unique wine access system. “When we launched the product, we targeted the people we thought would be early adopters—high net worth individuals, passionate about wine. Income tends to be a big determiner of whether or not you can be an early adopter. We want to create a trend and move the mar-ket along with us, like Apple did.”


“Mass marketing may be less effective,” says Virtuoso’s Ury. “This is a very high touch audience—phone call, email or direct message on social media, one-on-one in person.”

When asked how they feel receiving a personalized mes-sage (such as one addressed to them by name or referring to specific information like a birthday or recent pur-chase), consumers don’t really like it, because it’s a reminder of more personal information the company has about them, which can make them uncomfort-able (42%). However, the next highest response (34%) is from consumers who don’t typically pay attention to marketing messages, so personalization doesn’t make a difference there.

“Mass marketing may be less effective. This is a very high touch audience—phone call,

email or direct message on social media, one-on-one in person.”

DAVE UrySenior Manager, Customer Segmentation,

Virtuoso

Once again, there is not a clear mandate from this seg-ment, suggesting that luxury brand marketers who invest in experience and show respect for consumer choice in their messaging will come out on top.

“We do not personalize all our digital messages—there are times it is out of place,” says Butterfield & Robinson’s Kaliciak. “We personalize a message when we are following up on something. But person-alization for the sake of it rings false with this market. It’s a fine line. We have to ask ourselves—as a luxury brand, does it feel right? It may convert at a great rate, but at what expense?”

“At the end of the day, we want to be as personal and relevant in our communications with customers as possible,” says The Leading Hotels of the World’s Koserowski. “We look at this as a journey. We want a single view of the customer and to know where they are in the journey. That enables us to communicate with them in a one-to-one manner, and our customers are responsive to that.”

When asked how comfortable they are sharing their information with brands, 38% of the wealthy consum-ers over 50 in this survey respond that they feel neutral and 24% report being uncomfortable. Seventeen percent report never sharing information with companies. Only one in 10 say that they feel comfortable (10%) or very comfortable (2%).

To feel more comfortable about sharing data, these gen-erations appreciate transparency. “Let me see the data they have about me and edit it or limit the information the company shares going forward” is a sentiment shared by just under half of those surveyed (40%) as well as “be

luxury 50+ ConsumErs still gravitatE toWarD PErsonal ExPEriEnCEsthe 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.


transparent about it—tell me how they use the data and who they share it with” (37%). Almost a quarter reported that nothing would make them more comfortable.

Consumers are equally uncomfortable knowing that brands collect and aggregate data from different sources (such as demographics, visits to brand websites or stores, third-party websites, etc.). Fifty-four percent report some level of discomfort (32% uncomfortable and 22% very uncomfortable), and 35% say they feel neutral. This 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 more comfortable, respondents are evenly split. A third don’t think that anything will make them feel comfort-able, a third want the brand to be transparent about the 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

younger (51-70) to say that nothing would make them comfortable with this kind of data collection.

Privacy and data security remain sticky points for this mar-ket. There is no evidence of an overwhelming hostility toward the collection and use of data. Yet the very lack of consensus makes it clear that marketers need to pay close attention to this issue. It also suggests that with the right data and security policies, brands have an opportunity to really take the lead in the eyes of wealthy consumers.

there is no evidence of an overwhelming hostility toward the collection and

use of data.


Not surprisingly, this survey indicates members of the 50+ generations are not leading the way interacting with brands on social media. Nine out of 10 respon-dents (90%) report that they have not engaged the brand on a social media site (including tweeting using a brand hashtag, liking or sharing a brand’s page or post, or posting a review) in the last six months. This lack of engagement is no doubt due to the fact that this demo-graphic group is much less likely to use social media as a preferred method of communication.

Younger baby boomers (51-60) are slightly more likely (16% versus 10% overall) than any other age group to have interacted with a brand via social media. It is expected that as digital natives move in greater num-bers into the luxury market, this picture of social media engagement will likely change dramatically and quickly. Brands that develop expertise engaging with consum-ers via social media now will be well positioned to take advantage of this as the market demographics shift.

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.

Today marketers are caught in the middle of this chang-ing landscape. They must balance the needs and desires of the older cohort of the luxury segment with those of the younger crowd, take advantage of the unique bene-fits of digital technologies to segment, reach and engage audiences, and at the same time, be true to the brand and its promise.

For those who did not engage online, the strongest rea-son was because they don’t use social media (45%) or have no interest in being part of an online brand com-munity (40%).

No matter how they interact with the brand, experi-ence is important for the luxury segment. Two-thirds of wealthy consumers have had a positive, customized experience with a brand or retailer that caused them to become a long-term customer and/or to recommend it to others.

By far, what wealthy 50+ consumers are most willing to do to promote a brand is

share via word of mouth (84%). A distant second (21%) for this segment is writing

reviews on the brand website or a third-party review site.

“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 regardless of media.”

By far, what wealthy 50+ consumers are most willing to do to promote a brand is share via word of mouth (84%). A distant second (21%) for this segment is writ-ing 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 market in higher numbers and younger boomers con-tinue to gain comfort with this form of engagement. Third place was choosing to become part of a customer advisory group (19%).

Given the traditional inclinations of this older con-sumer segment, the tendency toward word of mouth at the expense of digital formats is not a surprise. But it does confirm the value for luxury marketers in pro-viding customized experiences, both on- and offline, to move past satisfying their customers to truly delighting and inspiring them, and then encouraging them to share that experience with others.

Digital CHannEls in tHE luxury marKEt


“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 con-sumers 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-ries with it a lot of responsibility,” says Butterfield & Robinson’s Kaliciak.

Marketing luxury brands to wealthy consumers over 50 is a balancing act. Luxury marketers are acutely aware of this. As advances in technology change the mar-keting landscape and how all consumers interact with brands, luxury marketers are also faced with increasing amounts of data about their prospects and customers and the changing demographics of their audience.

“As marketers of a luxury product, we have a drive to be first, but are constantly balancing that with doing it well,” says Houlihan Lawrence’s Gianutsos. “What

empowers us is a strong sense of the segments we market to. We think—what makes sense for the people we are trying to reach?”

It is also clear to luxury marketers that communicating effectively with wealthy 50+ individuals throughout the buying process is not only about having the right mes-sage across touch points, creating relevant segments or striking the right tone of personalization.

“It’s about the stories and experiences and the expecta-tions the product fulfills,” says The Leading Hotels of the World’s Koserowski. “It’s about using insights to delight customers and supercharge the experience. And it’s about being a customer advocate throughout the whole process.”

ConClusion


Education level2% High school graduate or equivalent7% Some college, did not graduate1% Completed trade or vocational school34% College degree30% Master’s degree26% Doctorate

Source of wealth45% Income from working at executive level in a business owned by others26% Income from owning my own busi-ness or businesses3% Proceeds from selling a business or businesses4% Income or proceeds from real estate11% Income or proceeds from bonds and stock market investments4% Inherited family wealth7% Other

Gender66% Male33% Female

Net Worth27% $1 million – $5 million32% $5 million – $10 million20% $10 million – $25 million 8% $25 million – $50 million 2% $50 million – $100 million3% $100 million – $500 million5% $500 million+3% Prefer not to answer

Age34% Ages 51-6041% Ages 61-7021% Ages 71-805% Ages 81+

Investable Assets7% Under $1 million36% $1 million – $5 million29% $5 million – $10 million13% $10 million – $25 million4% $25 million – $50 million3% $50 million – $100 million4% $100 million – $500 million4% $500 million+

Disposable Income8% $50K – $100K12% $100K – $250K 56% $250K – $500K21% $500K+2% Unable to rate

survEy mEtHoDologysurvEy of 462 amEriCan aDults ovEr tHE agE of 50


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

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aBout forBEs insigHts

Forbes Insights is the strategic research and thought leadership practice of Forbes Media, publisher of Forbes magazine and Forbes.com, whose combined media properties reach nearly 75 million business decision makers worldwide on a monthly basis. Taking advantage of a proprietary database of senior-level executives in the Forbes community, Forbes Insights conducts research on a host of topics of interest to C-level executives, senior marketing professionals, small business owners and those who aspire to positions of leadership, as well as pr viding deep insights into issues and trends surrounding wealth creation and wealth management.

FORBES INSIGHTS

Bruce Rogers Chief Insights Officer

Erika Maguire Project Manager

EDITORIAL

Kasia Wandycz Moreno, Director Hugo S. Moreno, Director Manya Chylinski, Report Author Robert Azcuy, Designer

RESEARCH Ross Gagnon, Director Kimberly Kurata, Research Analyst

SALES North America Brian McLeod, Commercial Director Matthew Muszala, Manager William Thompson, Manager EuropeCharles Yardley, Managing Director Middle East/Asia/PacificSerene Lee, Executive Director

Documents

Engaging 50+ ConsumErs in a Digital WorlDimages.forbes.com/forbesinsights/StudyPDFs/WealthEngine_EngagingConsumers_REPORT.pdf2 | pErCEptioN VErSUS rEALity The 50+ population has $3.6