A digital future for an analogue industry

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furniture digital marketing

Times are changing

The furniture industry has a reputation for being an Ol’ Boys club with a lot of face-to-face interactions and many industry trade shows to attend every year. My own experience from the industry more or less supports this reputation, as with most reputations they are often founded on at least some degree of truth, as they say “where there is smoke there is usually fire”.

Many industries have undergone great transformations over the past ten years, as they have had to adapt to new buyer behaviours with the shift from bricks to clicks retail. I have previously touched on the subject of e-commerce evolution, where we ten years ago found it unlikely that online retail of things like shoes or clothing would ever become popular, today we love it and most of us have at least at some point shopped online for these items.

I wanted to find out more about the general attitudes towards the use of digital tools as part of sales and marketing among the furniture retailers where I live; in Denmark. I wasn’t able to dig this information out from the corners of the internet, so I set out to conduct a survey on my own, and although it has to be said that my survey carries zilch statistical validity, it does give a good indication of certain trends and attitudes prevalent in the furniture industry.

 

So where is the furniture industry heading?

It is doubtful that the furniture retailers can remain behind their fortified arguments about their products being unsuited for online retail, due to their bulky nature and relatively large price-points, for very much longer.

Although the vast majority of sales still takes place in a physical store; roughly 3% happen purely online (USA & Europe combined data), it would be very unwise to ignore the impact the web has on the industry today. According to a study done in the UK by the Javelin Group the web has a direct impact on 42% of sales and this number is expected to increase to 69% by the year 2020.

So even though you might conduct the actual transaction within the four walls of your showroom, whether or not the customer will even venture into your store in the first place is very much influenced by what they experience online.

Furniture could be one of the last remaining online retail frontiers – so when will they conquer it ?

Probably sooner than many furniture retailers are prepared for. I spoke with many retailers during my survey and I got a clear feeling that most are aware that e-commerce is something they need to include in their business strategy, but they are very unsure of what exactly they should do to make it a success.

I understand where they are coming from; when you venture into uncharted territory where there are very limited established best practices to follow, you must have the guts to set the rules on your own. And that’s scary stuff when you have existed in an analogue world for donkey’s years.

Many fear that online trade will cannibalize in-store sales. This is my advice to them; with limited growth predicted for the industry at large over the next 5 years, and the only discernible growth is taking place on the web, online trade might very well eat away at in-store sales, but if you don’t cannibalize your own store someone else is sure to do it.

When Retargeting Smells Like Stalking

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http://www.dreamstime.com/stock-photography-woman-peeking-blinds-image28298072Ever had the eerie feeling someone’s watching you? How do they in mysterious ways keep bumping into you no matter where you go? Pop! Right in your face – again. Ugh, it’s down right freaky.

I often feel this way after a good dose of online window shopping. The next many many days, the stores that I have visited just keep showing up on my screen everywhere I go. Constantly I must be presented with the same jackets, shirts, shoes or whatever I have been looking at. I know what they look like thank you very much, I was the one who found them remember, I don’t need to see them again every 10 minutes.

I know the idea behind retargeting, as this (at times super annoying) marketing tool is called, is to nudge and remind a store visitor of the items they looked at in the hope that they will return to the store and complete the purchase. But there is also such a thing as frequency, which is the amount of times you present these little nudges to your potential customers, and boy do some online retailers get this wrong!

In particularly I find online clothing retailer Zalando to be overly zealous in their deployment of retargeting. They seem to be hunting rather than targeting, and I am apparently the prey. As is common with us prey, we don’t much care for our hunters, so we hide and make sure we never ever cross your path again. Which in your case, Zalando, means you have freaked and annoyed me sufficiently that I will not visit your otherwise very nice online establishment again for fear of being hunted days on end with the same images over and over.

Took me less than 10 minutes to bump into these 3 ads (4 actually since one ad was not enough in one of them) and this has happened non-stop for well over a week now.

Zalando 123

Sometimes less really is more. I’d appreciate a little friendly nudge now and then, maybe with a nice discount incentive to encourage me to return and make the purchase. But this kind of frequency has the opposite effect, I don’t want to go back because by now I’m fed up with Zalando.

As a marketing professional myself, I also appreciate that frequency can be a particularly difficult beast to master. I think what I would do, would be to test my way forward. Split test different frequencies and pair them with different buyer profiles.

Hopefully that should prevent campaigns from being are so far off target it resembles some kind of “shock and awe” strategy.