Why Full-Funnel Marketing Is so Effective for Luxury Brands
Everyone involved in the selling and marketing of luxury brands knows that it can be difficult to get new clients on board. With high price points, customers may use as many as 20 touchpoints before making a purchase, making for a truly lengthy process.
The modern customer expects a high-quality product at reasonable prices, fuelled by the age of digital consumerism. While other brands can sacrifice quality for a low price point and flashy sales pitches, luxury companies need to maintain the essence of their brand. That's why having a full-funnel marketing strategy that uses SEO, PPC, and Paid Social is so important.
What Is Full-Funnel Marketing?
A full-funnel strategy focuses on tailoring your marketing to particular stages of the customer journey, from pre-awareness to retention. It can be a long process—especially considering the 20+ touchpoints we mentioned earlier—but is the most effective way to attract and retain loyal customers.
The past few decades have seen immense change in the marketing industry: from social media and e-commerce to mobile apps and even AI. These changes have influenced the way customers interact with brands, and what they expect from them.
A strong full-funnel strategy involves using all the tools in your arsenal to reach and interact with customers at every level. While sales are still the ultimate goal, full-funnel marketing also focuses on driving awareness, establishing brand loyalty, and building relationships.
The 6 Stages of Full-Funnel Marketing for Luxury Consumers
Within full-funnel marketing, there are six defined stages that customers pass through before taking action. The journey should be seamless and natural—you don’t want to risk losing their interest.
Let’s take a look at what happens during these phases and the type of marketing efforts that are best used at each stage for maximum impact.
STAGE 1: PRE-AWARENESS
In the pre-awareness phase, a customer first discovers your brand and what it’s all about. This stage is about creating an emotional interest between you and your potential customer, showcasing how your values align and why they should take notice of you in the first place.
This is best done with traditional media - advertising, press releases, social media ads, and even infotainment content like podcasts.
Take Chanel, for example, who has an arts and culture podcast. While it’s not a direct ad for the brand, they have established a fun and entertaining touchpoint for potential customers.
The podcast allows them to reach a wider audience and gain new leads, all while showcasing values and issues that matter to the brand by discussing them on the show.
Another brand to take inspiration from is Rolex. The luxury company ran a 'perpetual planet initiative' campaign, designed to remind customers—and those in the pre-awareness stage—of their values and dedication to protecting the planet.
STAGE 2: AWARENESS
Now that your customer has heard of your brand, this stage is dedicated to building on that awareness, giving them a clear idea of what you do, why you do it, and why it can serve them.
This is best done through paid and organic social content. The most recent data shows that the average American spends 2 hours and 14 minutes per day on social media—why not meet them where they already are?
One luxury brand that has nailed this stage of the funnel is luxury car company Bugatti. Their social is carefully curated to appeal to car enthusiasts, even if they aren't ever going to purchase one of their vehicles. Bugatti knows they’re a luxury brand and that their vehicles are somewhat unaffordable for the average consumer but they don’t limit their social content to the small percentage who can afford them.
Take a look at their Instagram page. Bugatti’s channel is beautifully curated so fans can easily find the model they want in the highlights. The brand’s Facebook posts feature the performance and specs of the vehicles. They generate excitement about the cars themselves while also showcasing the knowledge of the carmakers. They also make sure that every single post is visually stunning, so it’s a pleasure to scroll through.
STAGE 3: INTEREST
By this stage, your customer is aware of your brand and values. Now it’s time to help them realize that your product is right for them.
This is best done with a multi-pronged approach. One of the most effective strategies here is to create SEO content with blogs and FAQs, which will help pique their interest even more. Paid ads targeting branded keywords will also be very effective.
Italian fragrance house Acqua di Parma, for example, has an extensive FAQ page that answers questions like "What is Acqua di Parma’s mission?", "Are any of your products tested on animals?", "Why shop with us?". These are the sorts of things that consumers in the Interest stage will be searching for, and by addressing them, the brand directs them to its site.
Luxury cosmetics company Charlotte Tilbury is a great example of a high-end brand using blog posts to share knowledge and further establish their relationship with customers. Charlotte’s World is a hub for all sorts of makeup and skincare-related questions which people regularly search for, such as “What is serum?” or “Benefits of vitamin C”. These articles aren’t selling products, per se, but keep Charlotte Tilbury top of mind as an expert in the field.
Charlotte Tilbury's blog, Charlotte's World
STAGE 4: DESIRE
This is about conveying the message that a luxury brand's product or service is unique and of the highest quality. This phase is key in justifying the purchase in the eyes of the customer.
This stage is best done with influencer-led social ads. If influencer marketing isn’t already a key part of your strategy, it’s time to jump on board. It’s effective and it works: one study found that even just a 1% increase in influencer marketing spending resulted in an engagement boost of almost 0.5% for brands.
“Just a 1% increase in influencer marketing spending resulted in an engagement boost of almost 0.5% for brands.”
YSL Beauty’s paid campaign with actress Zoe Kravitz is a standout example of this. By using a beloved celebrity, they managed to retain their high-end status, while also creating eye-catching social media posts that showcase the beauty of their product.
PR campaigns and social proof are also valuable tools during the Desire stage. For example, yacht company Ferretti Group shares the awards they've won in the news section of their website. So, rather than saying 'Buy our product', they're saying 'Here's why everyone loves our product and you should want it too'.
STAGE 5: CONVERSION
You’ve made it; the customer is ready to make a purchase. This is the stage where you want them to find your product quickly, with zero roadblocks that could dissuade them from following through.
This can be done through SEO-optimized product pages, to ensure that when they search for what they want, they end up on your website. It’s also a good time to invest in paid ads (like shopping ads and paid search ads) targeting specific branded keywords, which will show up in their browsers to remind them of the purchase they were considering.
Givenchy has nailed this stage. If you search ‘Givenchy bags’, their products appear in the shopping ads carousel at the top of the page, followed by a paid search ad. Their web page also ranks top of search engine results pages.
STAGE 6: RETENTION
You’ve successfully gained a customer and made a sale, so now it’s time to retain them. This is about winning customers back and also remarketing to customers who visited the site but didn't purchase.
Here’s where newsletters and email marketing really come into play. Targeted ads are also proven to be great for retaining and remarketing to customers. Nike is known for using Google display ads, based on a customer’s prior search history. If someone shows an interest in their shoes, for example, ads at the top of their browser will show a selection of Nike shoes tailored to their preferences, with a CTA button directing them back to the Nike website.
Madewell executed a similar strategy with Facebook ads. Based on how a user interacts with their site, and the items they show interest in, they’re served up an interactive ad on Facebook that lets them purchase from a list of curated items. By removing the extra step of going to check out on the Madewell site, they’ve made it easier to buy. Plus, the personalized experience is great for brand loyalty.
Creating a Full Funnel Marketing Strategy
So you’re ready to create your marketing strategy that makes the most of every stage of the funnel. Here are some things to keep in mind.
Create buyer personas to truly understand where your customers are and what they need.
Build an online knowledge hub with useful, informative, and SEO-driven blog posts.
Be active on social media, and invest in paid targeted social campaigns.
Pay-per-click paid advertising is worth investing in when done right.
Don’t market exclusively to high-end clientele.
Use analytics to track these efforts and adjust the strategy accordingly.
The act of creating an effective full-funnel marketing strategy is a detailed process. It’s best to work with experts who know the process inside and out, and that’s why we’re here. Get in touch with Block & Tam, luxury SEO, PPC, and paid social experts, and let’s start working together today.
