In a crowded marketplace, you must go beyond branding to drive sales. And, your secret weapon to do that is… direct response advertising. This modality is empowering furniture retailers to strategically reach and target customers with a message that is relevant, timely, and more cost-effective.
The truth is, most furniture retailers waste thousands, if not millions of dollars in online advertising each year without understanding the results because they don’t know what is working.
Simply put… it’s not just a tracking issue.
It’s also a mindset and strategy problem!
But there is a solution in applying the principles and tactics of direct marketing.
Over the past decade, the number of direct-to-consumer brands has surged. A recent eMarketer survey found that the time spent on D2C websites has more than doubled from 40 million minutes in 2016 to over 82 million minutes each year in 2018.
The growing availability of D2C brands and products, across all industries, is giving consumers more options to get the products and services they want.
And the market is only going to grow, especially for retail sectors.
Consumers will be purchasing more products and services from D2C companies in the next five years, as projected by a recent eMarketer report.
Mastering What You Measure
A survey by Mobile Marketer reported that nearly $23.5 billion were spent by retailers on digital marketing initiatives, with Google and Facebook ads leading the way.
But the truth is… Google AdWords and Facebook ad campaigns cannot, of themselves, guarantee meaningful results.
You can’t know how successful your campaigns are if you are not measuring and tracking them.
Understanding the Customer Journey
Learning how your furniture customers find you is a valuable asset to your messaging strategy and should inform how and when you target users. If a consumer hears about your brand on the radio, then watches your TV commercial, and then sees your ad on Facebook, how do you know which channel finally drove the consumer to purchase your piece of furniture?
And chances are, the touchpoints are all out of order. Today’s consumer journey is much more complex and far less tidy than I’m making it sound here.
That’s why you absolutely must define and measure your KPIs.
For instance, if a consumer clicked on your Facebook ad, added your product to their cart and purchased it, you know your Facebook ad is what led them to buy your product, but only if you’ve set up your e-commerce site with the Facebook pixel that passes that attribution through the system.
You can also use tested advertising methods like adding a code or control number to be redeemed at the time of purchase – these are especially helpful when you’re tracking performance on media channels like radio or direct mail. In fact, it’s the only proven way to measure success. Without attribution, you don’t really have proof. But regardless of what channels you spend advertising dollars on, it’s critical that you also nail down the right targeting strategy.
Targeting the Furniture Buyer in the Right Place at the Right Time
A study by BIA/Kelsey estimates that US spending on geo-targeting marketing or location-targeted mobile advertising will grow to $32 billion in 2021. Another study by eMarketer shows that location-targeted Ad Spending will grow to $38.7 billion in 2022.
Also, geotargeting advertising doubled the effectiveness of mobile campaigns for retail stores.
That’s tremendous – 2x as effective.
Geotargeting advertising involves determining a consumer’s location and serving them communications based on that location. Consider a scenario where a customer visited a retail furniture store. Your geo-targeted ad can communicate to that customer about discounts you offer or new furniture collections that fit their interests. Your geo-targeted ad can help you to learn more about customer behavior and how to best customize your campaigns to entice them to buy.
Realizing the Potential of Direct Marketing for Furniture Retailers
When retailers do not incorporate location-based advertising, they are not utilizing mobile advertising to its full potential.
You can’t control what you can’t measure.
To be sure, measurement is the basis of any success you can expect from any form of marketing. It isn’t enough to run a campaign and correlate your efforts against a vague rise or dip in sales.
Through scientifically creating measurable campaigns with specific goals, you can get a bonus in addition to sales growth – the intangible ROI called insight.
It’s as important to know why your marketing works as it is to know that your campaigns have helped increase sales.
Once you understand the key levers – the “why” marketing works, you’ll be on your way to maximizing the potential of your marketing.
But, until you learn to control what you measure – you’ll never know.
If you’re looking for other ways you can leverage direct response strategies to boost your furniture sales, let me know. I’ve been in the industry for over twenty years and would love to connect.