Status is everything for luxury brands. Without it, you’re just another handbag/apparel/jewelry company fighting for your spot in a crowded market. So how do you measure such a crucial metric effectively?
The NetBase Best Practices Spotlight: Louis Vuitton explains how to use social analytics to ensure you’re where you want to be in your category. Here’s a sneak peek:
What Differentiates Luxury from Ordinary?
What makes a luxury brand in the eyes of consumers? Certainly quality of product and price point speak to those who put luxury at a premium – but it’s the exclusivity of luxury goods that really define them. If everyone has access, it’s no longer a luxury.
Conversation topics that hurt luxury brands are those surrounding deals, sales, and discounts – anything that puts luxury products on an even playing field. In the luxury category, this leads to brand erosion, and a threat to luxury status.
We see this with Coach – a brand that continues to drift away from its former luxury status. Compared to Louis Vuitton, Gucci and Chanel, Coach has a much higher share of discount conversation compared to overall brand conversation.
Of course, this is not the only metric that matters.
Luxury and Passion Go Hand-in-Hand
Sentiment is another huge indicator for luxury brands – not just whether emotions are positive or negative, but the intensity of emotion. This is called Brand Passion, and it’s far more telling for a category like luxury.
Luxury isn’t an ambivalent category. Those who indulge do so because they have deep passion for the brands they love. Here’s how things look for Vuitton, Gucci, and Chanel:
All three brands have highly positive sentiment overall. Vuitton and Gucci tie with regard to strong positive passion, though Vuitton takes the prize for sentiment and positive passion combined. Where Vuitton also has an edge is with the lowest negative sentiment, and the lowest percentage of strongly passionate negative sentiment.
This means even those with a negative opinion aren’t that committed to it. These are consumers Vuitton can manage by looking at specific emotional drivers and addressing any common themes or concerns.
For this moment in time, brand equity is secure compared to these few competitors.
Staying Alert to Fickle Consumers
What’s important to remember is social is a fluid medium. Consumers are constantly bombarded with new information about their favorite brands as well as competitors. There’s no telling what will matter to them from one day to the next.
For this reason, luxury brands – as with all brands – must track consumer sentiment in real time. This applies to their own brand, as well as the others in their category. Any sudden changes should be analyzed to understand what’s driving the change – and how it affects your brand in the moment and going forward.
Is another brand gaining ground? Why? Are new trends emerging which could render your brand obsolete? How can you embrace them to come out on top?
These are just some of the questions social analytics and sentiment analysis answer for you. Be sure you take advantage of them. It’s working for Louis Vuitton – check out the full case study to learn more.
Want to see where your brand stacks up against competitors? Reach out and we’ll walk you through a customized competitor analysis.
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