How Home Builders Can Reach Affluent Buyers Online
What’s the secret to reaching affluent buyers online? It’s a unique challenge for builders. The profile of the affluent buyer is shifting from Baby Boomers to Millennials. The way that each generation uses technology is different, and so are their priorities of what they want in a new home.
This change impacts:
- Custom home builders
- Resort builders and developers (retirement and vacation)
- Builders of 55+ communities
- High-end production builders
- Urban condo developers
So what’s the right marketing mix to reach today’s affluent buyer? Here are a few to consider:
User Generated Content
Today there are 11.8 Millennials in the U.S. that bring home an income of $100,000 per year or more. It is estimated that over the next five years Millennials will become the largest luxury consumer market in the U.S. This generation is more likely to rely on social media, peer reviews, and other user-generated content to engage with a brand and make buying decisions.
Of course, Millennials are not the only affluents that rely on social media to make a buying decision. According to a recent study from the Luxury Institute, 60% of affluent Baby Boomers said they were inclined to use social media.
According to a recent study entitled How Affluent Buyers Purchase Luxury Goods, 75% of affluent consumers researched a purchase online and 68% used a search engine. That means that SEO is a key component of marketing to the affluent buyer.
Takeaway: Consider investing in an ongoing SEO strategy. Focus on high-value content that provides affluent buyers with the information they need to make a buying decision. (Related: Home Builder SEO: 9 Ways to Stand Out on Google.)
According to a survey by Forbes, 75% of executives watch work-related videos on business-related sites and 52% watch videos on YouTube weekly. More than half of executives surveyed said they share videos with other executives on a regular basis, and 65% of them visited a company website after watching a video.
Takeaway: Consider adding high quality, professional video to your online marketing strategy. Video can increase your SEO, build your email list, and improve conversion rates. (Related: How to Build Your Email List with Video.)
The number of women who are wealthy is growing at a faster rate than men. Women control 51% of the private wealth in the U.S. In 2014, it is estimated that 63% of moms will read blogs, and 55% of moms that were active on social media on a daily basis reported making a purchase based on something they read on a blog. (Source)
Takeaway: An active home builder blog strategy that includes at least two posts per week can increase SEO, provide content for social media and email, and create an email drip campaign for subscribers. (Related: How Often Should Builders Blog for Better SEO?)
Sites such as Pinterest and Houzz are popular among affluent consumers. For Pinterest, 67% of users are women and 18% of those users have an annual income of $75,000 or above. For Houzz, the average income is $124,000. Instagram continues to gain popularity with Millennials.
Takeaway: Choose a visual platform that’s appropriate for your audience, market, and product. Upload high quality, professional product photography that makes it easy for users to view, comment, and share. (Related: Pinterest, Instagram, Flickr or Houzz?)
In a recent article, Forbes cited mobility as one of the five values of the new affluent consumer. According to a recent study, 49% of affluent consumers under the age of 45 have made a purchase directly from their mobile phone.
Takeway: Review your website, blog, and email campaigns on a mobile phone and tablet. Are they optimized for mobile devices (responsive)? Is it easy for users to find the information they need? (Related: 7 Steps to Mobile-Friendly Home Builder Email Design.)
According to recent research by Dwell Magazine, 98% of affluent consumers believe that design enhances their life, compared to just 68% of the general population (source). Design is also an important element in marketing to the affluent online. Luxury builders often experience a disconnect with potential home buyers due to outdated websites, DIY email campaigns, and a lack of professional photography. Home builders that invest in design can better connect with affluent buyers online.
As always, test to find what works best based on your audience, your product, your market, your resources, and your own bottom line.
Need help reaching the right audience online? We specialize in digital marketing for home builders. Find out more about our online marketing services for home builders.