We’re always looking at new approaches when marketing hedge funds. And today’s no different. Let’s consider how to market hedge funds like luxury brands.
Why bother? It’s simple: hedge fund investors are often the same audience that luxury brands seek: affluent, well-travelled, well-cultured and not averse to displaying status. If the audience is similar, maybe the marketing should be too.
Marketing luxury brands
What do we mean by “luxury brands?” Think expensive cars, watches, clothing, jewellery and vacation destinations. These are brands that people use to show their status to the world, and they’re couched in stories of quality and exclusivity.
Luxury brands market to audiences that share these brands’ beliefs – as a result, the brand story matters. Also, approximately 60% of luxury brand sales are digitally influenced (Advantix Digital), meaning people researched online before making a purchase. For luxury brands, digital marketing strategies and storytelling must work together.
Luxury brands have some of the most engaging websites and active social media accounts around. People want to share in the story – they aspire to be a part of it. In some respects, they look to these brands for leadership.
Marketing hedge funds as luxury brands
Aspirational storytelling doesn’t sound too far out of reach for hedge funds. Here’s what hedge funds could do if they wanted to market themselves like luxury brands:
- Modernize their brand. While luxury brands often have a “classic” feel to them, they’re never out of date or stale. Their websites, brochures and social media presence are modern, clean and always focused on living the good life.
- Tell their story. Hedge funds need to tell their story authentically. This authenticity is engaging and helps carry the conversation into some of the more complicated discussions about investing, such as the fine print regarding redemptions and fees.
- Aspire and inspire their audience. Hedge funds are the tools that build and protect the wealth of the exact people who buy luxury brands. As such, hedge funds can join in their clients’ success by being an active part of it.
- Have a robust digital marketing strategy. A modern website, active social media accounts and a digital newsletter are a great start. We think it’s a great idea to share and create content that goes beyond investing and helps your audience display their status.
While hedge funds aren’t watches, cars or clothes, we think this type of thinking sheds some light on what’s possible. There’s room for hedge funds to improve their digital marketing, making it more modern and engaging to their audience.