A recent post we found on Branding Strategy Insider does a fantastic job of validating the ineffectiveness of celebrity endorsements in advertising. Most consumers and marketers would never expect to see the return on investment fall as flat as it does.

Celebrity endorsements may have their place, however the evidence demonstrates how many advertisers are simply following the leader and doing what has always been done without taking an objective view of the data to make sound marketing decisions.

Great read!

Search engine optimization for websites is certainly not a new concept.  It has become the mainstay of most online marketing programs and likely never to go away.  Where do luxury brands fit into this equation?  How valuable is SEO for a luxury brand?

Luxury brands have a unique selling position in the market whether they opt to use online media channels or not.  Their uniqueness comes from their pricing and overall positioning against lower priced goods as well as other factors.

Now, let’s assume you have a luxury brand and you hope to climb to the top of Google.

Consider two product types:

1) Unique products that buyers may not even know exist.

Let’s use the example of the Cayago Sea Toys company.  Take one look at their product and I would venture to say that many of us never knew such a product was in existence.  Based on the price of a few thousand dollars per unit, it is a safe bet that this is a luxury brand –using price as the unique identifier even though there are others.  It’s even coined as “The Luxury Sea Toy” on various websites.

When was the last time you wandered onto Google and typed in “luxury sea toy” as a search term?  It’s likely that you haven’t seeing that Google doesn’t even have enough data to show this term being used for searches on a global level.  Now, let’s trim that phrase down to “sea toy” and consider the commercial intent of the searcher.  Are they expecting to find a $4,000 item or perhaps a water raft from Walmart for their upcoming vacation?  It’s tough to say, but when considering search volume you must be aware that most of the searches for the general, shorter terms are not your audience.  They are also much harder to obtain high positions on the SERPS (search engine results page).  They are most often going to be price shoppers looking for more day to day items, not higher priced luxury goods.

On the other hand, if you type in a few terms relating to the actual brand name you will find it covers the first page of Google.  It is not likely that it was incredibly difficult or expensive to obtain premium positions on Google for their own brand name.  Therefore, the competitive landscape for the term is wide open for opportunities, thus lowering the cost of acquisition for searchers who buy through this channel.

2) More common items we have heard of and interact with on a regular basis such as a watches, cars, etc.

For this example, let’s consider a Louis Vuitton handbag.  This is not a product that no one has heard of.  One trip to the mall and you are hard pressed to see a single woman without one.  Most women looking for such a bag are certainly aware of the utilitarian aspects of a handbag, but those looking for a Louis Vuitton are looking for something specific.  If a potential buyer of a Louis Vuitton handbag was to do a search on Google, what terms would they use?  Would they simply type in “handbag”?  Not likely.  It goes without saying that they are most likely to search for the product by way of the brand name itself and the product type they desire.

What does this all mean?

It boils down to weighing the benefits of your SEO efforts and resources against the possible outcomes.  When users search for terms related to your brand name it is not typically going to be very difficult to obtain first page positions (disclaimer: this isn’t always true for all brands).  However, it is much more difficult to obtain first page positions for general terms to describe your product.  You will be up against the 800 lb. gorillas of shopping sites like Amazon and you aren’t like to beat them with ease, if at all.

In closing, understand the value of SEO for your brand by understanding the appropriate terms to target.  Being on the first page of Google for all the terms in your market would be great, but you must consider the cost of doing so against the benefit.  Focusing on placing your brand in the sandbox where your audience is engaged is critical.  SEO may certainly be a candidate, but don’t assume it is the easy route, nor the most fruitful.

Dream! Explore! Break the rules and push the edges!

My best ideas typically pop out of nowhere while showering or in the middle of the night. Yet some of my worst ideas get puked out on the conference room table. Gather your team and get some fresh air. It’s amazing how thoughts can flow when you feel the sun on your face and do something different.

Sure the economy is tough. It’s tough for everyone.

However, relationship building is critical when you are attempting to build a network of customers that are loyal. Not only are they loyal but they become your brand advocates or “raving fans”. This allows you to tap into their sphere of influence at no cost yet you will reap the benefits.

It’s really very simple. When you sell a luxury product, your market is not very large, period. This means you must ensure that your marketing dollars are spent engaging people who have the ability to even buy your product in the first place.

Take your time, cultivate and talk to the right people.

One nurtured customer could easily turn into a sea of raving fans..

There is no doubt that Social Media has taken the internet world and overall communication by storm.   The amazing communication breakthroughs we see taking place everyday are truly remarkable and improving at an incredible rate.  Seems glaringly obvious why everyone would jump on the bandwagon.   We truly live in an amazing time, don’t you think?

Let’s take a little stroll south of the border for a moment.

Have you ever been to any number of tourist beaches in Mexico?  Have you ever been able to enjoy some relaxation without getting hassled to buy a plate or some genuine Chanel sunglasses.  I swear.. they are real….  Perhaps your name on a piece of rice (very useful to have around)?

Now, we have Social Media and a Mexican beach. 

Here’s the deal.  Social Media handled poorly is very similar to the “sales people” on the beach.  They are relentless in their approach.  You could be gazing into your loved ones eyes and they will gladly interrupt you to see if you want what they are selling.  They don’t speak the same language and don’t even care if you have a need for their product.  Showing value is not on their list of priorities.  It is strictly a numbers game for them.  They know that if they approach enough people they will likely get a sale.  Pretty simple and elegant in some ways, but completely annoying and horrible for building relationships.

This exact approach is sweeping Social Media like a virus.  People are constantly trying to sell, up-sell, side-sell… you get the point.  They are not speaking the same language.  They are not providing value.  They are not sharing with the intent to engage in a conversation.  They are simply looking for numbers in hopes to get a sale.  If you are looking for numbers then be transparent about it.  Don’t even bother throwing in a worthless post about your weekend because you simply appear less authentic.  Be yourself and live up to your call center mentality.

However, if you truly want to create something worth spending all that time tweeting and posting about then shake their hands in the virtual world and mean it.  You don’t need 1 million friends or fans if you are using Social Media the way it is intended and most useful to you and those in your network.

Adios.

You will never get in trouble for embracing the status quo and you will never become remarkable as well.

Here are the recommendations. I certainly hope they provide some insight to those who are in the industry.

POST 1:

Building a jewelry brand – What NOT to do.

We have ample experience in developing brands and especially those brands that represent premium products. ahemm..JEWELRY.

What we have found is that you must marry your line with a story. Tell the story of your brand and how it came to be. Express the joy your consumer experiences while wearing your jewelry. You see where I am going here? It’s not just about a “cool looking” piece. It must have more than that to decrease price sensitivity and improve customer loyalty.

• Do NOT tout aspects of the brand that degrade its quality.
• Do NOT skimp on your web site. Keep in mind that your site is a positioning tool and those who seek your jewelry and find it online will have an opinion of your product based on the presentation layer of your site. If your site looks like crap, odds are your product is crap (in the minds of the consumer).
• Do NOT ignore current customers. They have already bought so they are likely to buy again. Be sure to reach out to them frequently.
• Do Not expect an ad in a magazine or similar outlet to explode your line. It simply doesn’t work that way. You will get some sales, but nothing to retire with.

More to come as I think of it. Best of luck to all of you.

POST 2: (Follow Up to Post 1)

More Tips on Branding a Jewelry Line

I certainly didn’t expect such a great response from my last post so I figured I would send out some more tips. Here you go:

1. An ounce of silver is an ounce of silver. BUT, your job is to take that ounce of silver and turn it into a story. Selling a silver ring for $500 that has about $10 worth of silver is very doable, but you must do it with care or you will never be positioned for premium pricing. You must accompany your jewelry with other touch points that speak a language of quality.
2. Someone responded to my last tips with this:
   “You leave out the most important part, how to attract customers to your product/brand/site ”

   This isn’t correct and don’t follow those who think that traffic is king. Yes, bringing visitors to your site is very important. BUT, this is step two. I can’t tell you how many business we deal with who listen to a comment like this and attempt to take a crappy “story” to market. They think more traffic will make them successful. Anyone care about conversions? I would rather bring 10 people to a site and convert 8, versus 100 people and convert 2. Get the point?

3. Social Media can work, but you must have a solid plan of attack for all forms of advertising including Social Media. Don’t think you are going to see huge gains by simply chatting with people. Your content must be more engaging than that. Also, keep in mind that Social Media does COST. It’s called TIME and it is irreplaceable and unavoidable.