Lifestyle creep is a phenomenon that occurs when someone starts to increase their spending habits—particularly on non-essential items—as their income increases. This is a growing trend among today’s consumers, made even more popular by “treat culture”, where shoppers reward themselves by making fun purchases. And suddenly former luxuries have become a part of their normal standard of living.
Oftentimes, lifestyle creep happens unconsciously as consumers put additional money on discretionary spending to improve their standard of living. Signs of lifestyle creep could be an upgrade to a nicer home or a more expensive vehicle, dining out more frequently, purchasing designer clothes and accessories, or enjoying exotic expensive vacations, spa treatments, or recreational activities.
As a luxury retailer, when customers have extra cash they’re ready to spend, finding the best ways to tap into trending lifestyle spending habits is a sure way to increase both customer satisfaction and profits.
Let's unpack this curious concept together and see how it plays a role in shaping the way consumers shop and driving demand for high-end products and services.
One of the biggest luxury spenders right now? Gen Z.
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Lifestyle creep psychology
Overall, the landscape of consumer behavior is transforming to higher spending patterns and idolized status symbols as we've been shaped into a high-consumerism mindset. As disposable income increases, consumers prioritize personalized experiences and products that reflect their social and financial life.
Social media platforms amplify this trend as many luxurious lifestyles are displayed for many to see. Think nice vacation shots, Pinterest-perfect homes, and glamorous outfits for a night out.
What’s more, as spending increases, especially on more luxurious possessions, victims of lifestyle creep can quickly get accustomed to the luxury lifestyle and want to add to it.
For example: With a purchase of a larger home, often people will see a need in filling the home with more furniture. In their last home, there wasn't room for two couches, but now there is. And don't forget about the garage space—with a bigger garage, they might need more cars. The list goes on and on.
How to use lifestyle creep to drive luxury retail trends
With larger amounts of money going toward non-essentials, the lifestyle inflation trend has a profound influence on luxury retailers. Luxury retail stores can steer their customers, who live a lavish lifestyle and have extra money habits, towards premium products and services.
Here’s how…
Showcase your deluxe products
Luxury customers may already be looking for a product in your related realm of retail, however, you need to strategically market your store to get them through your door. Showcase your products' and services' quality and deluxe craftsmanship as well as the status and prestige which they convey.
Offer a premium shopping experience
As a luxury retailer, you can capitalize on consumers' desires to elevate their lifestyles not just with your products, but with your customer experience. As you offer personalized experiences in the shopping process and lavish catering to their evolving tastes and preferences, they’ll choose your store time and time again. Don’t forget to ask for customer feedback and analyze reviews to see what’s working and what’s not.
Focus on the relationship—not just the sale
Finally, with luxury shoppers, they expect to be sold to. What they don’t expect is a sales associate working to build and maintain meaningful relationships with them. That’s how you earn not only their business, but their loyalty.
Paying attention to the types of items or experiences your customers are leaning toward—and keeping a detailed record—is what separates simple customer service from true clienteling.
As you align your store's offerings and experience with the sophisticated and exclusive desires of the consumer, you'll be able to strategically refine your marketing tactics and innovate your product lines to resonate with affluent customers.
How Clientbook helps match consumer expectations
Now that you understand the importance of adapting to the changing consumer expectations as a luxury retailer, you’re ready to make a plan to thrive in the dynamic marketplace. Luckily, Clientbook is made for exactly that.
With Clientbook's real-time data analytics tools, customer relationship management features, and advanced messaging capabilities, you can come on top of lifestyle creep.
Clientbook is a retail CRM platform that allows you to be present for your customers and stay attuned to their lavish lifestyles and needs. Communicate easily with clients and associates through Clientbook's app to provide the ultimate luxury experiences. What’s more, Clientbook provides automated messaging with AI to save you and your sales associates time and money.
By staying attuned to the evolving preferences and investing in exceptional customer experiences with Clientbook's tools, you can grow lasting relationships with clients and maintain relevance in an increasingly competitive retail world. Book a demo today to see how Clientbook can help you follow consumer trends and leverage your strategy for luxury shoppers.
Conclusion
In sum, lifestyle creep has emerged as a primary motivator behind consumer behavior and trends behind luxury retail. Lifestyle creep offers endless opportunities for luxury retailers to capitalize on the growing demand for premium experiences and goods and services.
As retailers embrace innovation and understanding consumer motivations, they will more likely deliver with exceptional value that consumers are seeking and position themselves for success. Clientbook is an essential tool in this quest, and can leverage every luxury retail's strategy among their consumer type.
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