by If you listen to or read any current books on retail, the concept of disruption is almost always central to the subject matter. While the ideas offered are often insightful, they usually don’t really help those of us who have been tasked with continuing to increase revenue during this ongoing retail evolution we are all experiencing.
In the furniture category, the way consumers shop and how we reach them has changed significantly.
The sheer breadth of online product leaves physical stores challenged to address trends. Influencers compete with retail sales associates for share of voice in providing consumers with information and making sales. Marketing messages now resemble more of a conversation, with consumers often calling out our failures in reviews and ratings. And traditional ad calendars that offer promotional pricing around major holidays don’t always cut through the constant barrage of offers consumers scroll through hourly.
Not surprisingly, “traffic is down” is the most common report I hear from retailers today. Oddly enough, no matter what’s happening in the overall economy, this hasn’t changed much at all. Costs for customer acquisition are at all-time high. I was at an industry event recently where the figure was quoted at $119 per customer. Hard to build revenue with those costs on promotional margins. And yet, we must make our numbers.
Some things haven’t changed. Consumers buy furniture when they have life changes: new baby, marriage, divorce, downsizing, retirement, moving or new job. They have a need. Many will recognize this from Kerry Lebensberger’s sales training sessions about identifying customers’ pain. Good salespeople approach their customers from their customers’ point of view. They ask questions before the pitch. They listen. They empathize with the struggle and try to offer a solution to the best of their ability.
When traffic is down, a good salesperson will ask about marketing: What was the last effort that showed some legs? They bring ad ideas and information about what has worked in other areas. They are informed about features and provide engaging training for RSAs. They are aware of new channels to reach consumers.
Keep in mind that an uninformed pitch and high-pressure tactics are why, in survey after survey, most people report that they don’t like us (sales folk). While it may seem counterintuitive, selling to a retailer is a long game and you have to understand their pain points and work to relieve them. I can’t tell you the number of times I have heard from a salesperson that an account that didn’t give them an order “is not worth the gas.” I’m pretty sure I know why they didn’t get that order and someone else will.
On the factory side, some of the companies bucking the current retail trends have been focusing on consumer insight and lifestyle to develop product. They are solving problems and winning. One major manufacturer’s team discovered that lots of people sleep in their recliners. They incorporated this insight into their product development, marketing and product positioning on retail floors — connecting with consumers with a different message that solves their problem and ultimately leads them to choose to buy.
In our efforts to increase conversion rates and make every door swing count, we are looking at our assortments through this lens at Coaster. As a company, we have a long history and reputation as a supplier of promotional product, but we also offer dovetail drawers and pocketed coil seating. What value for the price! And we train on that, we have POP that explains why those features are key to the product’s durability. We know this is the kind of information that could be important to, say, a parent furnishing a child’s room who hopes it can last to accommodate the next kid that comes along.
Mattress guys have been all over this. They essentially sell a fabric-covered rectangle. It is difficult to differentiate, and the category is confusing to the customer. Yet bedding manufacturers are the best storytellers. Whether you like the approach or not, they speak to the pain consumers are experiencing with their current mattress. They sell wellness and a good night’s sleep.
To increase traffic at retail we have to market to consumers’ needs. We have to attract them to a solution and not just tempt them with a price. We need to infuse our messaging with all the ways we make their life better, offering real solutions to cut through the noise. In this new game we are all playing, attraction, rather than promotion, is the way to win.
Mindy Leitwein is national accounts manager at Coaster Fine Furniture.
