Premium segment: what is it and how to find solvent clients

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What is it? The premium segment is an audience with high purchasing power. At the same time, it is interested in a higher quality and exclusive product or service, as well as a high level of service.

What is important to consider? Your product must win the hearts of high-paying customers. You must also understand the intricacies of the thinking of wealthy people in order to successfully work in the premium segment.



The article explains:

What is the premium segment in the market?
Examples of companies from the premium segment
How the premium segment is organized in Russia
Differences between the Economy, Mid-Range and Premium segments
Premium clients
Factors Affecting Audience algeria email list 1.76 million contact leads Willingness to Pay
What is business built on in the premium segment?
Difficulties and problems in the premium segment
Search for premium audience segment using VK as an example
Recommendations for selling premium products
Subtleties of brand promotion in the premium segment
Common Mistakes in Working with the Premium Segment
Frequently asked questions about the premium segment

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What is the premium segment in the market?
Premium products and services are intended for customers whose income exceeds the average level. Such offers are distinguished by high quality, thoughtful functionality, unique design and serve as a symbol of the respected social status of their owners. Many buyers prefer products from the premium price segment for their quality and exclusivity.

In the premium segment of the market, space is limited. The small number of companies striving to produce high-quality products leads to the fact that competition here is assessed not by quantity, but by the level of quality of the goods offered.

Premium segment of the market

Source: shutterstock.com

In this market segment, product pricing is based on their tangible properties and added value, which can determine up to 95% of their final price. This emphasizes that the high cost of products is largely due to their intangible characteristics.

It is important to realize that the uniqueness and high quality of products, their non-standard design and special functions play a key role in forming an emotional connection between consumers and the brand. These factors distinguish a premium product and often become the reason for the company's preference.

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Pros and cons of working in the premium segment
Benefits of doing business in the premium segment:

the ability to make a large profit due to a high markup;

Due to the limited target audience, advertising campaigns are more effective;

it is easier to establish strong connections with consumers, which helps to form a permanent customer base;

defining and maintaining the desired brand image and positioning is made easier by the specificity of the segment;

There is less competition in the premium niche.

Pros and cons of working in the premium segment

Source: shutterstock.com

Challenges in interacting with premium segment clients:

the presence of a staff of highly qualified employees with an appropriate level of pay;

high demands on the quality of goods and services from buyers;

Starting a business in the premium segment requires significant investment;

the risk of losing a significant portion of income due to unsuccessful company branding;

It is important to maintain a positive brand image, promptly resolve emerging issues and be flexible in communicating with customers;

low sales volume and turnover of goods compared to everyday goods.

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