Defining luxury customer behavior

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Luxury customers are a unique kind of breed, unlike ordinary buyers. They do not buy stuff because they need it. For them, it is a way of investing in experiences, status, and self-expression. Emotional and psychological variables play a huge role in their buying decisions. Therefore, luxury brands must level up their approaches to attract these high-end buyers.
For luxury customers, a product is more than just its physical worth. They take it as a mark of identity, a badge of glory, and a doorway that leads them to a world of exclusivity. They choose luxury products, whether it is a handmade watch or limited-edition handbag, with utmost care and thought. This requires luxury brands to go above and beyond the typical strategies to satisfy such customers.
Understanding the psychology of luxury customer behavior
Social status and identity
Luxury customers see luxury products as an emblem of success and social standing. They buy them to show their achievements and identity to the world. Buying a branded product with a highly visible logo signals that they have wealth and can afford it.
This not only shows who they are but also what they mean to the world. One day they are drawn towards a minimalist and aesthetic product and the very next day, they may be craving some bold or extravagant item. In the end, all they want is something that helps them maintain their social identity status and identity.
Exclusivity and rarity
The allure of exclusivity is one of the main drivers behind the luxury purchases. Scarcity fuels desire and luxury customers are a perfect example of this. Products that are hard to get or rare appeal to luxury buyers.
Limited-edition releases and exclusive collections convey a sense of urgency and exclusivity. That is why luxury brands need to bring some never-seen-before offerings for elite customers. This will keep the previous customers coming back and attract new ones too.
Brand reputation and heritage
Customer’s perception of a brand greatly impacts their behavior towards it. This is best described by a term called ‘’halo effect’’. It is a psychological phenomenon, and according to it a brand’s strong reputation and rich heritage have a positive effect on customers.
For example, Rolex has a name for its quality and excellence. This leaves a positive impression on the people who do not have firsthand experience with the brand.
Influencers and social proof
Younger generations of today see influencers as trendsetters. These stars of social media profoundly shape customer tastes and increase brand desirability. They promote high-end products to lend credibility and attract new buyers for brands. These dynamics show why people like designer brands so much and how digital platforms are impacting luxury customer behaviors.
Demand for personalization and customization
Luxury customers want to feel special. These elite buyers just don’t want a product, they want something that is tailored to them. This gives them a chance to express their individuality and unique taste. Imagine customizing your luxury watch with your initials or choosing the exact materials and colors for your luxury handbag. This makes the product personalized and uniquely theirs.
Sustainability and ethical values
Today’s customers are becoming more concerned and responsible for our ecosystem. They want to be sure that the companies they support are benefiting society and the environment. Younger generations, particularly Gen-Z, are willing to pay extra if the products reflect their values.
For some brands, like Stella McCartney, sustainability is important to their identity. In its pursuit to promote ethical practices, the brand has banned fur and leather goods. They are using ethical production methods and eco-friendly products to attract clients who are concerned about having a good influence on the environment.
7 tips to increase luxury product sales
Use social media and influencer marketing
Luxury brands are using social media and influencer marketing because these are the two most impactful ways of marketing these days. People trust their favorite influencers and prefer to buy things on their recommendations. Especially, customers craving luxury want to be trendsetters on social media and show something new every day. This drives them to make more luxury purchases.

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Coach made a strong comeback in the fashion world by using social media and influencer marketing greatly. It’s famous and TikTok viral ‘’Tabby bag’’ became a huge hit on social media. Endorsed by famous celebrities, like Jennifer Lopez and Megan Thee Stallion, the bag achieved an icon-level status. It quickly garnered 34.2M posts on social media.
Coach aims to attract younger minds through influencer partnerships and social media campaigns. That’s why it also teamed up with stars like Lil Nas X and Camila Mendes for campaigns like “Find Your Courage”. This has helped the brand to become a go-to option for luxurious yet affordable luxury pieces.
Offer digital and interactive experiences
Luxury customers do not just buy the products, they want to have a unique experience with every purchase. Brands can make their experience more interactive and immersive by incorporating innovative techs like AR and VR. Customers can be engaged in digital experiences like virtual showrooms, augmented reality try-ons, and online events. These immerse the buyers in highly realistic and one-of-a-kind ‘’Metaverse’’ experiences.

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For example, YSL Beauty has introduced an interactive way to explore its LIBRE Eau de Parfum in 3D. Users can engage with a three-dimensional model of perfume’s iconic bottle. It represents the notes and styles of perfume and gives users a chance to see and feel the essence of LIBRE. This makes them feel as if they are holding the fragrance in their hands. The experience engages them in a sophisticated experience in a modern way.
Allow for luxury product personalization
Customers love brands that give them options to customize their products. This lets them add a personal touch to make their purchase unique. They feel seen and their interest valued by the brand they are interacting with. According to a Forbes survey, more than 81% of customers prefer those brands that offer personalized experiences.

For example, Balenciaga has created a personalized sneaker try-on experience. It is made possible by augmented reality and lets people see themselves virtually ‘’wearing’’ the perfect pair of PARIS HIGH TOP TRAINERS. Hyperrealistic 3D visuals can restore the exact materials and colors in digital. Customers can apply different colors and check which one looks perfect.
Use collaborations and activations
Collaborations with other luxury brands, designers, and artists create a buzz in luxury retail space. It creates excitement for the upcoming product or campaign. Another way to do this is through pop-up events and experiential activations. These give luxury customers unique opportunities to witness some never-seen-before experiences.

For example, Charlotte Tilbury has, in a historical move, made a partnership with Formula 1. The unexpected campaign provides a lovely fusion of beauty and adrenaline. It celebrates how the influence of female drivers is increasing in F1 while keeping beauty as an important part of their lifestyle.
Introduce exclusive and limited-edition collections
Introducing limited-edition collections increases their value and creates a sense of urgency in luxury customers. They feel the utmost urge to buy the unique offering. In an effort to quench their thirst for exclusivity, they try to grab the opportunity as quickly as possible.

Source: loewe
Loewe introduced a number of interactive experiences and limited-edition collection items to celebrate the Chinese Valentine’s Day, called ‘’Qixi’’. The special edition handbag features two hedgehog accessories. Users can adjust their position to symbolize their separation or coming together.
This reflects the challenges of love displayed through a famous Chinese mythological love story. The bag has a perforated leather design that represents the path the hedgehogs traveled. This meaningful touch made the exclusive-edition bag a perfect gift for the Qixi Festival.
Appreciate and reward your customers

Luxury customers want to feel valued and appreciated by their favorite brands. And the best way to make them feel such is by giving them back. It can be in the form of loyalty programs, points or coupons, or exclusive prizes. Hong Kong International Airport’s ‘’Departure to Award’’ system is a fine example of this. It lets you embark on virtual journeys while winning surprise rewards.
Build emotional connection through innovative storytelling
Storytelling is the core factor of luxury branding these days. It helps brands convey their rich history and craftsmanship through engaging narratives. Use immersive techniques to share your brand story and evoke feelings in customers. This creates a positive impression on the minds of customers and makes them feel connected on a personal level.

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For example, Burberry has collaborated with the famous Chinese bamboo-weaving artist Qian Lihuai to celebrate the Year of the Snake. Qian has created nine handwoven bamboo sculptures in a series named ‘‘Us’’. The sculptures were shaped like snakes and made using bamboo.
Each shape symbolizes different emotions like family bonds, love, hope, and support. Qian’s work beautifully combines Burbbery’s unique patterns with the traditional bamboo weaving experience. This campaign helped the brand build emotional connections through innovative storytelling.
Conclusion
Luxury customer behavior is a niche of its own. Understanding their desire for high-end and never-seen-before experiences and products is important. This helps brands provide them with exclusive and individualized experiences, and that’s exactly what they want. Kivisense is a leading platform that helps luxury brands maximize their ROIs through advanced tech solutions. We offer highly innovative AR, VR, and AI-based marketing solutions for all types of e-commerce brands. Contact us to elevate your luxury brand and connect with elite customers.