Latest information from the US Postal Service revealed that between March and October 2020, nearly 300,000 New York residents requested to alter their tackle to Connecticut. In March to July 2020 alone there have been 245,000 residential strikes. This in contrast with solely 101,000 throughout the identical interval in 2019 highlights the elevated actions. All throughout the nation, huge cities witnessed an analogous exodus as the consequences of the pandemic took maintain all year long.
At first look, this type of migration exercise would appear to characterize a major alternative for furnishings retailers. In spite of everything, these shifting out of the large cities are usually prosperous, white-collar employees in secure employment who’re more likely to be fascinated with furnishing their new properties. Nonetheless, the fact is that many furnishings retailers are failing to capitalize on current occasions on account of shortcomings of their information and promoting methods.
Merely put, many retailers are spending money and time by advertising and marketing to core prospects within the huge cities who merely aren’t there anymore. By persevering with to depend on pre-pandemic information units, they’re squandering precious advertising and marketing sources at a time when the ROI on each greenback counts greater than ever.
So, what can furnishings retailers do to adapt to the shifting sands and efficiently leverage information to attach with their goal prospects?
Replace your assumptions
Maybe the one most necessary factor all retailers needs to be doing proper now could be refreshing long-standing assumptions about their prospects. Any buyer information collected within the three years previous to the pandemic is more likely to be considerably totally different from information collected during the last 12 months. That’s to not say that pre-pandemic information units are actually nugatory, but it surely’s necessary to acknowledge and set up how a lot has modified for patrons over the previous yr.
Furnishings retailers have two apparent information units to attract upon to tell their advertising and marketing exercise: the info they acquire in-store and the info they acquire on-line. Furnishings retailers have tended to lean closely on in-store information as the idea has all the time been that individuals desire to make giant ticket furnishings purchases in-store reasonably than on-line. These within the furnishings enterprise must ask themselves (and their information) whether or not that assumption nonetheless holds true in 2021. The pandemic has popularized e-commerce throughout all sectors, even the furnishings enterprise.
Retailers must rethink how they’re using their web sites. Historically, many furnishings sellers have positioned their web sites as on-line showrooms, primarily designed to draw in-store footfall. These web sites aren’t designed to ship gross sales of big-ticket gadgets on-line due to the idea that prospects wouldn’t purchase a brand new couch with out bodily sitting on it first. Some retailers have woken as much as the shift in client habits by introducing instruments similar to Augmented Actuality to permit on-line prospects to ‘image’ new furnishings in their very own dwelling.
Furnishings purchases additionally are inclined to require dwelling supply, so, historically, retailers have been in a position to decide how far on common prospects are keen to journey to their retailer after which use this data to focus on and optimize their advert spending by setting a radius round every of their shops. Given the current ranges of migration from huge cities, persisting with the identical outdated advert concentrating on technique primarily based on proximity to the shop is an enormous mistake.
Comply with the cash
A key shift that furnishings retailers could make as we speak is to extend the emphasis positioned on their on-line information and, then, ask two key questions. Firstly, the place are these on-line gross sales coming from, not simply on a metropolis or city foundation however drilling all the way down to particular person zip codes? Secondly, the place you’re doing properly, what’s the common family revenue of residents in these zip codes? Family revenue might be an important information level within the furnishings house. Retailers want to grasp what their common buyer appears like, in socio-economic phrases, then establish the place these particular prospects are within the nation.
This method lets you double down and improve your advertising and marketing spend within the areas the place you already do properly. It additionally lets you establish comparable socio-economic areas to focus on for on-line gross sales development, significantly areas the place you don’t have a retailer inside straightforward attain and consciousness of your model is low. The following stage is to grasp the place these individuals are discovered within the media panorama, e.g. in case you are searching for folks with an revenue in extra of £100,000 a yr, are you more likely to discover them by promoting on youth-oriented channels like SnapChat and TikTok?
It’s time for furnishings retailers to assume once more concerning the information driving their media spending and establish the place their goal prospects are as we speak, each geographically and economically.
In regards to the Writer: Craig Brown is the Head of Supply in North America at Incubeta NMPi
About Incubeta NMPi: NMPi by Incubeta is an award-winning digital advertising and marketing company with over 10 years of expertise in delivering world campaigns with granular localized concentrating on.
Furnishings Business Information and in depth journal articles for the furnishings retail, furnishings producers, and furnishings distributors.
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