A vital part of your marketing strategy is considering what segments you are going to target. In every industry, there are high-end and low-end customers that you can try to acquire. Both segments will need very different marketing messages that relate to their desires.
Our article discusses the differences between high-end and low-end customers and marketing tips for targeting them.
What’s the difference between high-end and low-end customers?
High-end customers are drawn to the quality of products rather than the price. They’re willing to spend more money on a designer brand or specific aesthetic that they’re drawn to. Sometimes high-end customers can take longer to convert than low-end customers because they want to be wooed by the product. Low-end customers typically have less money to spend on luxury items compared to high-end customers, which means spending little and often is their approach.
However, it all depends on what the customer feels is a necessity to them. Some low-end customers might buy a £5 lunch from a shop every day but see a new watch as too expensive; that’s why it’s important to understand your persona’s priorities.
How to target high-end customers
Understand your customer
Begin by carefully identifying your key prospects, even if it’s a small pool of people. Select and promote only those products or services you believe will increase your high-income customers’ status and style or offer added value to their lives. A high-end customer cares a lot more about the marketing messages they’re receiving and the customer service. They want to feel like you’re speaking directly to them, and they’re getting value for money.
Stay up to date with the latest trends
A high-end customer will be more likely to stay up to date with the last trends, like user experience on websites and popular fashion designs, etc. If you’re using innovative techniques on your website, the customer will feel more taken care of and remember your brand for its uniqueness. For example, brands like Sephora allow customers to apply makeup digitally to their faces before purchasing their products. The simpler and more impressive you can make the customer journey, the better.
Build a credible brand
Sometimes high-end customers will copy their friends and buy from the same brands. Or they’ll see a celebrity using a product and buy the same thing to feel like they’re living a similar lifestyle. This is where building a credible brand comes into its own. You can do this by building up lots of reviews, being the thought leaders on interesting topics, and working with influencers to show off your products. The more positivity you can spread about your brand, the more people will buy from it and recommend it to a friend.
How to target low-end customers
Keep things short and sweet
Low-end customers tend to have busy lifestyles and take a lot more convincing to buy anything expensive. It’s important not to overcomplicate your marketing messages; they want to feel like they need your product before making a purchase. Typically, a low-end customer might resonate with marketing messages on social media more than researching a brand or product. If they see something they like whilst they’re scrolling, or their best friend has put a post on Facebook, they’re likely to buy it as an off-the-cuff one-time purchase.
Consider your pricing model
If you are targeting low-end customers, you have to understand that the price of your product is very important to them. At the same time, your product may be a luxury to them, something they spend their spare money on, so how do you make the benefits stand out? Consider the three main reasons a low-end customer would buy your product and focus on them in your marketing message. Use words like value, savings, and budget to capture their attention and make them feel like they’re getting great value for their money.
Maintain your quality
It can be easy to think that a low-end customer will only prioritize the cost of your product, and you should therefore make it as cheap as possible by decreasing the quality. However, this is only sometimes the case. A low-end customer will want to know that they’re spending their money wisely and getting a product that will last, just like a high-end customer.
As we can see, there are some clear differences between high and low-end customers, but there are ways to target both if you’ve got the right product. By whittling down your audiences and creating personalised messaging, there’s no reason why you can’t test campaigns to both segments.