Furniture Direct Mail Success Story

Furniture Direct Mail Success Story

Customer Objective

After a recent relocation, this furniture retailer needed to increase awareness of the new location while also promoting their annual Customer Appreciation Event to new and existing customers.

Campaign Strategy

  • Perform lifestyle analysis utilizing client provided customer data

  • Identify key geography around the new location based on lookalike customers and propensity to purchase furniture

  • Segment customers by geography to receive varied, targeted offers

Campaign Results

0%
increase in sales YOY
$0
in sales directly attributed to mail campaign
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Furniture Industry Trends

Consumers are opting for less expensive, ready to assemble furniture pieces. Also, independent bedding retailers are facing competition from mass merchants and department stores as well as on-line retailers. There is, however, opportunity to boost revenue by offering accessories such as mattress toppers and pillow cases.

Here are some more stats around furniture industry trends for the past year.

  • Consumer confidence and housing sales have been fueling sales for furniture retailers over the last few years

  • Price of products has been decreasing but volume increasing

  • Target markets have remained consistent

  • Sofas, chairs and sofa-sleepers account for 28.1% of industry revenue – expected to increase further

  • Over the past 5 years, consumers have opted for less expensive furniture pieces from retailers like IKEA and Walmart

  • Women are the sole decision makers 53% of the time for furniture, followed by a joint decision 27% of the time

Source: 2017 IBISWorld, PBM Strategic Insights, 2017 Furniture Today Study

Furniture Industry Trends

Consumers are opting for less expensive, ready to assemble furniture pieces. Also, independent bedding retailers are facing competition from mass merchants and department stores as well as on-line retailers. There is, however, opportunity to boost revenue by offering accessories such as mattress toppers and pillow cases.

Here are some more stats around furniture industry trends for the past year.

  • Consumer confidence and housing sales have been fueling sales for furniture retailers over the last few years

  • Price of products has been decreasing but volume increasing

  • Target markets have remained consistent

  • Sofas, chairs and sofa-sleepers account for 28.1% of industry revenue – expected to increase further

  • Over the past 5 years, consumers have opted for less expensive furniture pieces from retailers like IKEA and Walmart

  • Women are the sole decision makers 53% of the time for furniture, followed by a joint decision 27% of the time

Source: 2017 IBISWorld, PBM Strategic Insights, 2017 Furniture Today Study

Furniture Advertising Opportunities in Rural America

Total potential sales in the furniture and bedding industry is $166.1 billion. But in 2016, total sales only amounted to $104.8 billion, leaving the buying gap at $61.3 billion. There is a major opportunity to examine ways to reach buyers, including those in rural areas.

  • Millennials have finally emerged as a large segment of the furniture-buying population – stores are encouraged to market to this demographic to capture their spending

  • For all furniture and bedding categories more than 50% who shopped actually bought products

  • A survey found that two-thirds of respondents are creating living rooms in their master bedrooms, with 60% planning to add seating and 8% adding a sofa

Source: AdMall, PBM Strategic Insights, August 2016 HFN study

How Do I Find My Best Rural Furniture Customers?

Our Consumer Analytics team are highly skilled in the science of micromarketing. What does that mean? Micromarketing is another way of saying that we develop a marketing strategy in which your direct mail advertising efforts are focused on a small group of highly-targeted customers. This gives your message the best chance possible to be seen by the right customers at the right time.

Direct Mail’s Influence on Furniture Customers

  • 41% of furniture shoppers said an ad/coupon in their mailbox led them to take action in the last 30 days, 70% over the last year
  • 65% of rural survey respondents reported redeeming coupons by cutting them out of advertising inserts – this is 28% higher than those who clip coupons from the newspaper
  • According to the DMA, direct mail response rates are on the rise – last year average response rates were at 5.3% – a 43% increase from the previous year and the best it’s been in the last 13 years

Sources: Prosper Insights & Analytics 2017, Admall 2017

Do You Have Any Questions About How Direct Mail Can Grow Your Business?

If you have any questions about how direct mail can grow your business, we would be happy to answer them. You can call us at 877-620-6283 or select GET STARTED TODAY to fill out our form.

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