Splurge Marketing Tactics: Turning Premium Experiences into Profit

How many consumers fear their savings plans will be derailed this year? A Harris Poll for the Journal of Accountancy reports it’s around 50%. This mindset can make it challenging for your accounts that turn to splurge marketing tactics. Around 16% of U.S. adults will spend extra money for special occasions, reports AudienceSCAN. Let's review the best ways to reach them.

Which value points do consumers consider before splurging

It might be a new bracelet. Or maybe it’s a high-​end appliance. Consumers are often tempted to give in to their desire to purchase an item that normally out of their price range.

Your accounts know that consumers will give in to the temptation to make a purchase. But the splurge marketing messaging must touch on the right points. The Ipsos Consumer tracker identified these points. Basically, the research indicates that would-​be buyers want to know they are getting something of value.

For example, when splurging, consumers consider the following aspects before they take out their credit card:

• The item must last a while 48%
• The brand has an established reputation for quality 47%
• The buyer wants to know the purchase won’t be a waste of money 47%

How consumer feelings connect to a purchase

Your accounts might think that splurge marketing means promoting an item as exclusive or rare. That angle may not drive higher demand. Ipsos reports that only around 18% of consumers consider exclusivity when splurging.

AudienceSCAN data shows that Special Occasion Splurgers have specific motivators for making a purchase. They want products that help them feel:

• Comfortable 48%
• Healthy 46%
• Relaxed 38%

Marketers have other ways to promote splurge items to these consumers. For example, our research shows that 24% regularly treat themselves to retail therapy. This kind of messaging is all about letting the buyer justify the purchase as a way to feel better.

These consumers also like to buy American and seek out locally made (non-​food) items. When developing splurge marketing messaging, reminding your accounts that buying American-​made goods has a strong emotional appeal. 27% of splurging consumers want to be able to say they are “proud to own this.”

Your accounts should keep this detail in mind when they develop ad campaigns to run during patriotic events. These holidays include 4^th of July, Memorial Da, and Presidents Day.

How does splurging vary by age

The Ipsos study also explored how consumer ages impact feelings about splurging. Consumers over age 55 are very interested in the life expectancy of a product (54%). For example, they may pay a lot for an expensive piece of jewelry or furniture. But they may not be willing to pay $500 for a bottle of wine.

Younger consumers, 21% of those under age 35, will pay for a product that possesses a “vibe.” Help your accounts understand what that means. Often, vibe marketing is about working the space where “culture and internet-​native communities” meet.

Accounts need to develop a campaign that connects emotionally with the target audience. They should create the right mix of visuals, music and attitude. Done properly, the campaign is about far more than the product. And young “splurgers” can’t resist making the purchase because the campaigns appeal to their sense of belonging.

How do consumers splurge by income level?

47% of consumers with income under $50K are hyper focused on knowing they won’t waste their money on a splurge. AudienceSCAN reports that nearly 19% lower-​income consumers plan to get a tattoo this year.

That’s 29% higher than all U.S. adults. A significant percentage of these consumers are between the ages of 18 to 24, an indication that vibe marketing will be effective for this kind of splurge marketing.

51% of consumers with income ranging from $50K to $100k are also concerned about not wasting money. Middle-​income households are 9% more likely to pay for an accounting or tax service in the coming year, according to AudienceSCAN.

Hiring out tax preparation may feel like a splurge for these consumers. But they also realize it’s not a waste of money. With professional help, they may be able to improve their tax return outcomes.

Consumers with incomes of over $100K have a different outlook. 50% want to know their splurge product will last a long time. A look at AudienceSCAN’s Affluent Consumers profile reveals that 25% are in the market for a watch or jewelry in the next year.

Conclusion

As your accounts develop splurge marketing campaigns to target consumers, guide their approach. When they understand the emotions behind the purchase, their messaging will improve the ROI on advertising. The AI Idea Generator tool in AudienceSCAN, powered by AdMall, will help you develop better ideas.

Photo by Andrea Piacquadio on Pexels.