HARMAN Luxury Update
How to Attract and Retain
by Dave Tovissi
Vice President and General Manager, HARMAN Luxury Audio
HARMAN Luxury Audio is committed to expanding our product assortment and core services to appeal to an ever-changing luxury customer. We are constantly looking at research from industry experts who are tasked with predicting trends and opportunities.
Regardless of what research document we read, the data supports that we as a business unit and you as our value-added reseller must commit to three core things to be relevant to luxury customers:
1. Don't Compete on Price
Whilst many consumers who purchase luxury products still care about price, it isn't their primary concern. They're willing to spend more if they feel that the product is worth it. We'll get more customers if we focus on demonstrating the value of our products instead of competing on price.
It's common for consumers to associate higher prices with higher quality products, and vice versa, especially if we emphasize quality in our marketing campaigns. By making quality a focal point and setting prices to match, consumers will associate high quality with our brands.
2. Focus on Quality
A recent study on luxury brands found that most consumers perceive quality as a major determining factor of a brand's viability in the market. Luxury consumers are willing to pay more for quality, but that quality must be consistent throughout the customer experience. If the products are great, but the customer service is sub-par, the business is going to suffer. Our goal at HARMAN Luxury Audio is to cultivate a luxury experience for your discerning clients.
3. Create Exclusive Offerings
Although quality is a major reason that consumers choose luxury products, they also desire the exclusivity factor. They want something that most people will not have. Average consumers are fine with mass-produced products, but the high-end luxury customer prefers limited edition products.
The limited supply of the JBL L100 Classic 75 loudspeakers is a great example of how limited editions appeal to the luxury consumer. As you recall, we announced in January at our virtual CES event, HARMAN Explore, that we would be creating a 75th anniversary offering of our best-selling loudspeaker. Within months, our regions were sold out and were begging for more.
The success of the JBL L100 Classic 75 bundle has opened our minds to what other exclusive bundles or products we could be offering in the future. We are encouraging our sales teams to inquire with their customers on specific exclusive offerings that they may want for their loyal customers.
Validating the Research
In the What’s New article in this month’s newsletter, you will learn how our marketing team has been hard at work building the awareness of Mark Levinson within a very targeted luxury consumer that we are calling a Cultural Maven. It's interesting to see how well our brand stands out within this demographic.