A recent study has revealed that there is a clear linear relation between a brand’s number of followers and sales. Discover how luxury brands are utilising Instagram to connect with highly engaged users and consumers.
With over 500 million people a day flocking to Instagram to scroll through endless images of ‘food porn’, celebrities and memes, it is no surprise that brands have taken advantage of this platform to reach out to a new generation of consumers.
Instagram relies on striking images and video to engage with its audience which is great for brands as 40% of people respond better to visual information than plain text.
“As a visual storytelling and discovery platform, Instagram allows brands to express their visual DNA in inspiring and unconventional ways. Evoking emotion through mutual interests and aesthetics allows brands to connect with disparate consumers” – Nikoloz Makhatadze, Group Director, Global Media at Tiffany & Co.
Brilliantly illustrated by this quote, it is clear that the visual nature of Instagram allows brands build seemingly personal connections with their followers.
But how effective is Instagram at creating relationships between brands and their audience? And can this really boost profits?
Well here are the facts…
-86% of the top brands have Instagram accounts.
-Engagement rates on Instagram are 15 times higher than Facebook.
-27% of millennials admit that Instagram influences their purchase decisions.
-49% of users state that they follow brands on Instagram to feel like they are more closely connected with them.
–A recent study conducted by UBS highlighted that there is a “clear linear relation” between a brands number of followers and sales.
So yes, Instagram is a vital tool for your brand and your profits.
Why Luxury Thrives on Instagram.
One industry that continuously nails their Instagram presence are luxury brands.
Encompassing a wide range of industries from high fashion, to bespoke travel experiences these luxury brands thrive from showcasing aesthetically pleasing imagery and desirable lifestyle.
But I know what you are thinking…
How can Instagram’s primary users, millennials, afford to buy into this luxury lifestyle?
Well, UBS discovered that even if a brand’s followers can’t afford to purchase a designer item or luxury experience immediately, their interest is likely to cause them to buy in the next year or two.
Therefore, a quality Instagram account helps to create a loyal audience. This allows brands to connect with their followers which increases the likelihood of an immediate sale or a future one.
However, a recent report in Bloomberg, revealed that despite reduced spending opportunities, millennial’s are more likely to purchase luxury products than any other age group.
Amazingly, consumers aged 18-35 contributed to 85% of the luxury market growth in 2017, whilst a study by Dana Rebecca Designs revealed that 70% of people surveyed make fashion, beauty or style-related purchase after seeing something on Instagram.
This tells us that millennials are highly receptive to value-based marketing and that this strategy is extremely effective when executed through the visual based storytelling techniques of Instagram.
The Instagram Masterminds
With the introduction of swipeable links and Instagram’s shopping feature, scrolling through the site has now become a minefield of impulse buy opportunities.
But despite Instagram making it increasingly easy for consumers to buy directly from their site, brands still need to build a following and most importantly, create a relationship with their followers.
This means knowing their audience and the best ways to connect with them using great quality content.
Gucci is an amazing example of a brand who has built a valuable relationship with a huge audience despite promoting more exclusive products.
‘But how?’ I hear you asking… one word, memes.
Meme [noun] An image, video, piece of text, etc., typically humorous in nature, that is copied and spread rapidly by Internet users, often with slight variations.
Gucci commissioned various internet artists and a photography team to create humorous text paired with images of their new wristwatch collection.
Needless to say that the campaign was a huge hit with the millenials of Instagram as it gave Gucci a more relatable edge.
Don’t worry, we aren’t asking you to go out and create a collection of branded memes but there are some key lessons we can take away from Gucci’s Instagram success:
-Know your audience -Work out who you are trying to attract and adjust your content accordingly.
-Commit to consistent content- Plan ahead so you continually engage with your followers and avoid losing their interest in your brand.
-Colour flow and aesthetic- Ensure that your content maintains a somewhat similar theme in terms of its overall look and feel.
-Inspire and engage- Only post product driven content 20% of the time, keep the rest entertaining. ‘Behind the scenes’ posts are great for this as it gives your audience a personal insight into your brand.
-Utilise powerful Instagram influencers- Tagging and collaborating with Instagram celebrities or influencers is a great way to reach a new or wider audience.
There is no doubt that Instagram is a fantastic tool for brands to resonate with users and build a loyal following. However, getting it right can be tricky, especially when you are busy running your own business!
Want to build a following or create some truly engaging content but don’t have the time? Why not arrange a call with us today and our team of experts can help your Instagram thrive!