SOURCE: Luxury Institute
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March 10, 2008 11:00 ET
Luxury Institute WealthSurvey: Wealthy Consumer Membership in Online Social Networks Reaches 60%
NEW YORK, NY--(Marketwire - March 10, 2008) - Wealthy consumer participation in online
social networks dramatically increased to 60% in 2008, from 27% in 2007,
according to The Luxury Institute's latest WealthSurvey "The Wealthy and
Web 2.0." Participation levels in leading social networks are: 16% for
MySpace, 13% for LinkedIn, and 11% for Facebook. The wealthy average
membership in 2.8 social networks, with an average of 110 connections.
"Being connected is second nature to these over-achievers," said Milton
Pedraza, CEO of the Luxury Institute. "We are pleasantly surprised at the
rapid acceleration in the over 55-year-old wealthy consumers whose
participation increased five-fold, to 49%. The implications for luxury
goods and services firms are profound. While some in the luxury industry
are still debating e-commerce, search and banner ads, the majority of their
customers have leaped into the online dialogue. Luxury needs to catch up
quickly."
Results indicate that online communities will continue to fragment into
increasingly selective and specialized entities of like-minded members.
This should make it easier to reach target markets, but luxury firms should
avoid critical mistakes. "The wealthy have a great deal to lose," said
Pedraza. "They will not tolerate behaviors exhibited recently by social
networks that force opt-out techniques on member's private purchase
information, and make it difficult to exit." Sixty-five percent of wealthy
consumers say that giving out personal data without permission will cause
them to disconnect; 63% have an interest in "do not track" lists.
The dramatic rise in wealthy participation in online communities points to
another great opportunity for luxury marketers, who can create their own
online customer and prospect communities and engage people in a rich honest
dialogue. "Luxury providers should already be in the testing and
experimentation stages of online prospects, customers, employees and other
constituents. The era of transparency and co-creation in luxury is well
under way," added Pedraza.
Methodology
A national sample of 805 wealthy American consumers, with an average income
of $287K and average net worth of $2.1 million, was surveyed online. Survey
results are weighted to match demographic and net worth profiles of the
same audience according to the latest Survey of Consumer Finances from The
Federal Reserve.
This latest WealthSurvey, plus ten best practices surveys per year, a
database of dozens of other consumer surveys, the Wealth Report newsletter,
plus select networking with trusted qualified peers, are all available to
members of the Luxury Board (www.luxuryboard.com), an online community for
Luxury Professionals who wish to learn how best serve luxury consumers, for
only $995.00 per year.
About the Luxury Institute
The Luxury Institute is the uniquely independent and impartial ratings and
research institution that is the trusted and respected voice of the high
net-worth consumer. The Institute provides a portfolio of proprietary
publications, research and courses that guides and educates high net-worth
individuals and the companies that cater to them on leading edge trends,
high net-worth consumer rankings and ratings of luxury brands, and best
practices. The Luxury Institute also operates the Luxury Board
(www.LuxuryBoard.com), the world's first global, membership-based online
community for luxury goods and services executives, professionals and
entrepreneurs. To reach the Luxury Institute, please call 646-792-2669 or
go to www.LuxuryInstitute.com.