Premium products attract the attention of an affluent audience whose needs contrast sharply with other categories of buyers.
Main consumer groups:
About 55% of premium segment clients are people with a consistently high income. Representatives of the business and creative elite, government officials and their relatives.
Approximately 20% are former representatives of the middle class. They strive to confirm their new status through attachment to exclusive and expensive things.
15% – pseudo-wealthy individuals. They chinese malaysia phone number list want to improve their social position by purchasing elite and advanced products.
The remaining 10% are the middle class. They choose expensive goods as gifts or for important events.
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General characteristics of a buyer from the premium segment:
is characterized by high self-esteem and awareness of his own importance;
strives to emphasize his status;
values his time;
perceives high cost as an indicator of product quality.
Purchasing high-end goods is often motivated by the desire to stand out, please oneself and loved ones, and sometimes reduce stress or negative feelings. A premium store offers a unique range of products for the most demanding customers.
Understanding the difference between premium and exclusive products is essential because it concerns the main reasons for purchase. Buyers of the first products strive to have their choice highly appreciated by others. Owners of the second products do not focus on public recognition, but rather value the incomparable quality of their purchases.
Factors Affecting Audience Willingness to Pay
State of the economy
When the macroeconomy is stable, people tend to spend money, as opposed to during times of economic turmoil.
Different circumstances in which clients find themselves
Consumers may be in different circumstances, including their location, professional field, and intended tasks.
Customer willingness to pay
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Seasonality of the product
If a product is out of season, buyers lose the incentive to overpay for it. The cyclical nature of seasonality makes it easy to predict its effect based on data from previous years.
Different attitudes towards product cost
Each person approaches the issue of price of goods based on their own experience and financial situation, which forms an individual attitude to cost. People with a high income level tend to buy goods at high prices, especially when it comes to exclusive quality products and premium offers. Based on the analysis of various consumer groups, it becomes possible to develop an optimal pricing strategy, focusing on specific segments.
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What is business built on in the premium segment?
The premium segment is an audience with high purchasing power. At the same time, it is interested in a higher quality and exclusive product or service, as well as a high level of service.
Staff
Employees play a decisive role in the perception of the company by customers, especially VIP buyers, for whom the choice of purchase often depends on the level of service. The external attributes of the staff are also important, including a neat appearance, clean skin and hands, neat hair and clothes, moderate makeup and a pleasant aroma, emphasizing their professionalism and attention to detail.
When working with premium products, one of the main tasks of salespeople is to overcome buyer skepticism. This requires not only a deep understanding of the value and quality of the products offered, but also the ability to confidently convey this to the client. An important role is played by staff training, covering detailed knowledge of the product, mastering key sales skills and understanding the uniqueness of high-end customer service.
Staff for the premium segment
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When developing a reward system and setting the level of pay, it is important to avoid setting strict limits on maximum earnings. Providing the opportunity to earn high wages for the most successful not only contributes to a significant increase in turnover and income of the company, but also encourages other employees to strive for similar heights.