INDUSTRY INSIGHT:

3 GROWTH STRATEGIES

FOR FURNITURE RETAILERS

Wingman’s 20+ year media partnerships with furniture retailers have uncovered remarkable insight into strategies that consistently drive revenue and growth in the industry. Furniture retailer revenue trends are heavily influenced by our economy; during periods of economic instability, inflation, and interest rate hikes, furniture retailers must navigate a contracting market where consumers are hesitant to purchase big ticket items.

Three key strategies have enabled our furniture retailer clients to withstand market fluctuations during economic downturns. Drawing upon our extensive expertise and partnerships within the furniture retail sector, particularly with our esteemed client Sit n Sleep, this article will delve into the three key strategies that have consistently fortified our clients against market fluctuations during economic downturns.

KEY STRATEGY #1:

ESTABLISH YOUR BRAND AS THE WELLNESS AUTHORITY

Emphasizing the significance of overall health and wellness serves as a cornerstone approach for attracting customers. Particularly during economic downturns, marketing initiatives focused on holistic health can significantly impact market dynamics and elevate product demand. Even amid contracting consumer discretionary spending, individuals consistently prioritize their health and well-being over other expenditures [1]. Therefore, positioning your brand as an authority on wellness not only fortifies its resilience but also ensures relevance even in challenging economic climates.

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Case Study A
From Mom and Pop to Industry Giant

THE CHALLENGE

The Great Recession (2007 – 2009) was a period of severe economic instability. Many people lost their jobs, saw their income decrease, or experienced the fear of potential job loss [2].  In this type of unstable environment, consumers prioritize essential expenses over discretionary spending. As a result, the mattress industry experienced a sharp decline in spending across the nation.

 

 

THE SOLUTION

Sit ‘n Sleep revamped messaging to focus on sleep health. The new campaign “Replace Every 8” was designed to shorten the sales cycle and convince people to replace their mattresses more frequently by spreading public awareness about the health benefits of a new mattress. Through broadcast and digital media, Sit ‘n Sleep addressed the unsettling aspects of sleeping on an old mattress, revealing that mattresses can double in weight every 8 years due to the accumulation of sweat, dust mites, and bodily secretions. The campaign stressed the importance of replacing mattresses, asserting that regardless of warranty tags, “if it’s over eight, it’s time to replace.”

Following a prosperous launch that effectively countered the trend in year-over-year comp store attrition, the campaign shifted its focus to establish Sit ‘n Sleep as a frontrunner in championing sleep health. The brand positioned itself as experts, proficient in helping people find the right mattress for their specific body type and sleep health needs.

 

 

THE RESULTS

This innovative educational campaign reversed a negative 25% comp store sales trend in the first few weeks. It also established the profound connection between sleep quality, overall health, and the role of a mattress as indispensable for well-being. By positioning itself as a leading authority on sleep health, Sit ‘n Sleep has transformed its image from a discount mattress warehouse brand to a respected specialty mattress retailer with 38 of the highest volume mattress stores in the country.

KEY STRATEGY #2:

LEVERAGE YOUR FIRST PARTY DATA TO MAXIMIZE YOUR MEDIA BUDGET

First-party data serves as the lighthouse in the vast sea of advertising possibilities, guiding retailers toward the most effective media channels for reaching their target audience. Armed with these insights, advertisers can make calculated decisions on where to allocate their media budget for maximum impact.

Case Study B
Optimizing Linear TV Advertising with First Party Data

THE CHALLENGE

In 2018, Sit ‘n Sleep aimed to achieve an 8% YoY same-store sales growth. However, the mattress industry was projected to grow only 3% YoY and Sit ‘n Sleep’s marketing budget remained flat.

 

THE SOLUTION

Wingman Media focused on optimizing television, the biggest line item in the client’s media budget. By combining first party data and household level TV viewership data, Wingman identified programming with the most reach and engagement within Sit ‘n Sleep’s customer base. Armed with these insights, nearly 50% of the stations from the client’s linear television footprint were cancelled. Although these stations offered competitive CPMs for audiences within Sit ‘n Sleep’s target demographic, the analysis uncovered a crucial insight: these audiences were not were not converting into Sit ‘n Sleep customers.

The combination of Sit ‘n Sleep’s first-party data with TV Set-Top-Box data unveiled that no more than 6% of Sit ‘n Sleep’s customers consumed television from these stations. Recognizing the need for a strategic shift, Wingman decided to reallocate a portion of the budget to media that would increase reach among a look-alike audience on broadcast TV.
 

THE RESULTS

Utilizing first party viewership data allowed Sit ‘n Sleep to reduce their television ad spend by 18%, saving $1.4 million. These initiatives drove Sit ‘n Sleep to achieve an impressive 11% YoY growth in same-store sales revenue, surpassing their initial target of 8%.

Case Study C
Expanding Reach with Connected TV

THE CHALLENGE

Audience fragmentation is a considerable challenge for traditional television advertisers like Sit ‘n Sleep, where reach is critical to defend its market share and achieve YoY growth goals. With traditional TV audiences dwindling and more viewers shifting to streaming platforms such as Roku, FubuTV, and Hulu, Wingman Media needed to devise a strategy to secure adequate reach in a fragmented media landscape without spending more money.
 

THE SOLUTION

To increase reach without increasing Sit ‘n Sleep’s current television budget, Wingman shifted part of the linear television budget to connected television (CTV). CTV allows brands to run highly targeted media campaigns that engage lower funnel audiences who have expressed interest in buying a mattress and are close to the point of conversion.

Sit ‘n Sleep’s first party data was then appended to match back CTV impressions with people who purchased a mattress at a Sit ‘n Sleep retail store or online. This allowed Wingman to optimize the CTV campaigns based on insights into performance, such as which campaigns, days, times, CTV inventory, and creative drove conversions.
 

THE RESULTS

CTV helped Sit ‘n Sleep achieve incremental reach from untapped television audiences without increasing ad spend. The campaign generated an estimated conversion value of $860,000 while contributing to 956 new walk-in conversions and a total ROAS of 8.2.

KEY STRATEGY #3:

SEIZE MARKET SHARE AND EXPLORE ADJACENT GROWTH

When expanding a market is not possible, stealing existing market share and venturing into adjacent markets present viable opportunities for growth. Furniture retailers can tap into new revenue streams by stealing market share from competitors both online and in store. Additionally, retailers can expand into similar verticals across the home furnishings sector. 

 

Case Study D
Growth From Google Ads

 

THE CHALLENGE

In 2022, Sit ‘n Sleep found itself amid an abrupt contraction due to inflation and the rapid escalation of interest rates designed to curb it.

 

THE SOLUTION

To stave off declining sales and maintain consistent YoY performance, Wingman Media and Sit ‘n Sleep focused on stealing market share from local competitors. Wingman identified paid search as the optimal channel to execute a steal share strategy targeting potential mattress buyers approaching the bottom of the sales funnel.

Wingman crafted compelling narratives positioning Sit ‘n Sleep as the superior choice to find the right mattress. Like the “Replace Every 8” campaign that launched during the financial crisis, the “8 Year Mistake” campaign compelled shoppers to rely on Sit ‘n Sleep for discovering the ideal mattresses tailored to their body type and budget. The “8 Year Mistake” ran as an omni-channel campaign across broadcast and digital channels.
 

THE RESULTS

Competitor paid search ads convinced in-market mattress shoppers to visit their nearby Sit ’n Sleep, resulting in a 249% increase in foot traffic to brick-and-mortar locations. Brand Campaigns also defended the Sit ‘n Sleep brand with 99% impression share against competitors.

Case Study E
Paid Social Media Drives Sales

 

THE CHALLENGE

Digital mattress disruptor brands have diverted a substantial portion of market share to e-commerce sales while legacy brick and mortar stores have lagged in creating a competitive online mattress shopping experience [3].

 

THE SOLUTION

To defend against the market share losses and find new channels to strategically recapture ground from the encroaching D2C bed-in-a-box disruptors, Sit ‘n Sleep formed strategic partnerships with bed-in-a-box giants.

Wingman used social media to influence in-market audiences to shop online at sitnsleep.com for popular bed-in-a-box brands. Paid social media campaigns were launched in 2021 on Facebook and Instagram using animated videos and carousel ads to intercept and guide consumers to the Sit ‘at critical touch points in the decision-making process.

Wingman also identified an opportunity for Sit ‘n Sleep to tap into additional revenue streams by promoting their bedroom furniture and bedding accessories in social media.

 

THE RESULTS

The paid social media initiatives yielded tangible financial returns. The first quarter of 2021 alone saw a staggering $38 million conversion value—an undeniable testament to the efficacy of the strategy.

Sit ‘n Sleep’s sales of bed-in-a-box products online experienced a substantial 47% year-over-year increase. Furthermore, expanding product offerings beyond traditional mattresses increased the AOV (average order value) while keeping low-selling products in circulation.

These results not only fortified Sit ‘n Sleep’s online market presence but also demonstrated the power of paid social media advertising during times of economic contraction.

READY FOR A GROWTH PARTNER?

In a contracting market, it’s essential for furniture retailers to have a strategic media and creative partner. Wingman Media has consistently demonstrated its expertise in navigating this vertical, ensuring that our clients not only survive but thrive.  If you’re a furniture retailer looking to position yourself for growth and success, we’d love to help! Use the form below to schedule a call.

 

READ THE CASE STUDIES FROM THIS ARTICLE

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