The third Industry-Wide Web Summit will bring together home furnishings retailers, manufacturers, and suppliers to brainstorm new online solutions, work through conflicts, and address misconceptions about selling furniture online. The agenda includes sessions on implementing email marketing and social media, incorporating web-based marketing, creating an engaging website, and understanding online furniture shoppers. Attendees will also participate in a roundtable discussion with industry experts. The goal is to help businesses struggling with their online strategy and show that furniture can be successfully sold online.
3. Bury old misconceptionsYou CAN show and sell furniture online. We’ll show you how.
4. The Agenda 1:00 to 1:15 // Welcome 1:15 to 1:45 // How to Implement Email Marketing and Social Media for Results David McMahon | PROFITconsulting 1:45 to 2:15 // Throw Web-Based Marketing Into Your Mix Ron Carpenter | Strategic Marketing Solutions LLC 2:15 to 2:45 // Create an Engaging Website that Brings Your Brand to Life Online Renee Loper | Aspenhome 2:45 to 3:15 // Demystifying the Online Furniture Shopper | David Lively | The Lively Merchant 3:20 to 4:00 // Roundtable expert discussion
7. How to Implement Email Marketing and Social Media And Get the Best Results David W. McMahon PROFITconsulting davidm@profitsystems.com http://twitter.com/profitcoaches www.profitconsultingblog.com www.profitconsulting.net
8. They Go to Your Web Site – Invite Them To Join Your Club!
13. Customers Come Into Your Store – Most Do Not Buy, Yet Get their information so that you can follow up – increasing the chance of a be back. Export these opportunities from your system!
14. Send Them a Simple Thank You and Ask a Question!
16. Ask Them for Their Feedback With a Survey – You Will Get Additional Leads
17. Give Them More Ideas and Link Back to Your Website So They Can Continue Shopping
18. If a Customer Is Not Ready to Buy, Offer Them a Quote This is a less intrusive way of getting their information. It provides the customer with value and you with a FOLLOW UP tool! Export quotes also – some will lead to sales.
21. When You Do Make a Sale, Send a Thank You With Value Export a couple times per week and send thank you notes on your written sales.
22. Most Sales Need Follow Up. Assure the Customer That They Will Be Taken Care Of!
23. Give Back to Your Customers For the Next Time. It is Great Word of Mouth.
24. Schedule Delivery, Pick Up, or Service Save time on playing telephone tag and export all those customers whose merchandise is ready and send one email a few times per week.
25. Save Time on Playing Telephone Tag - Send One Email a Few Times Per Week to All Those Customers Whose Merchandise is Ready
26. Confirmation of Delivery, Pick Up, or Service After scheduling your deliveries export to send your customers a delivery reminder.
27. Set Yourself Apart - Include Time Window, Date, Delivery Address, and COD balance in One Classy Format
47. Ron CarpenterStrategic Marketing Solutions Strategic Marketing Solutions is a management consulting firm based in Greensboro, NC. SMS serves manufacturers, retailers, and suppliers in the home furnishings industry, providing consulting services to clients in the following areas: Recent clients Include the NHFA, Broyhill, Home Meridian, Custom Decorators Inc., & Thomas Hahn & Home Previously served in senior marketing and consulting positionsat Magnussen Home, Lea Industries, & BDO Seidman
48. Topics For Discussion This Afternoon Your Cheese Has Moved!! Why This Summit May Be Your Most Productive Afternoon at This Market How Do You Move Your Website and Interactive Marketing Program Up The Continuum? Enhancing Your Site's Capabilities Over Time Key Tactics To Leverage Your Web Investment Interactive Marketing Strategies 1 + 1 Can Equal 3Integrating Your Store's Web Site Into Your Marketing Mix You Don’t Have To Do This Alone!! Selecting The Right Key Vendors and Resources
49. Why This Summit May Be Your Most Productive Afternoon at This Market Your Cheese Has Moved!!
50. Change In The Furniture Retail SectorChanging Business Models and Practices How Do Consumers Sort Through These Options? They Use The Web To Decide What To Buy And Where To Shop Before They Leave Home! Source: Furniture Digest – Mann, Armistead, & Epperson
51. Who Moved My Cheese? by Dr. Spencer M. Johnson A Parable For The Furniture Industry Change Happens They Keep Moving The Cheese Anticipate Change Get Ready For The Cheese To Move Monitor Change Smell The Cheese Often So You Know When It Is Getting Old Adapt To Change Quickly The Quicker You Let Go Of Old Cheese, The Sooner You Can Enjoy New Cheese Change Move With The Cheese Enjoy Change! Savor The Adventure And Enjoy The Taste Of New Cheese! Be Ready To Change Quickly And Enjoy It Again & Again They Keep Moving The Cheese. - “Haw” – Wall of Cheese Station N
54. Internet Is Mainstream76% of all U.S. Households are online US Online Adults by Age (in 000’s) Today, 70% of adults are actively online Source: MRI Spring 2008. Based on Adults 18+
55. 100% 80% 60% 40% 20% 0% 1999 2000 2001 2002 2003 2004 2005 Audience Penetration by Media Audience Penetration, By Media (U.S. Adults, 18+) 73.0% Internet 60.5% Sunday Newspapers 52.5% Daily Newspapers 36.7% TV, Prime Time 21.4% Radio, AM Drive 17.7% Radio, PM Drive 13.7% Cable, Prime Time 53
56. Consumers are Spending More Time Online Total US Advertising Spend Media Consumption $303 Billion (2007E) The Opportunity 6% Online Going Online 14 hours per week 41% of their time Retailers Reallocating Their Marketing Budgets To Reflect Consumers’ Media Preferences 22% TV 20% Direct Mail Watching TV 14 hours per week 14% Newspapers 5% Yellow Pages 4% Magazines 7% Radio Listening to Radio 4 hours per week 21% Other Media Reading Magazines, 2 hours Reading Newspapers, 1 hour Source: “US Entertainment and Media Consumer Survey Report 2007” JupiterResearch (April 2007); Universal McCann (June 2007); eMarketer (Feb 2007); Google internal estimates
57. Enhancing Your Site's Capabilities Over Time How Do You Move Your Website and Interactive Marketing Program Up The EVOLUTIONARY lADDER?
58. Where Is Your Store Now In Its Web Evolution? Missing In Action Site - No Site or Program Dragnet Site – A Site With Just The Facts Movin’ On Up Site – Templated, Buying Group Site Web Committed Site - Proactive Site Fully Engaged Site - Website Part Of An Integrated Marketing Mix E-Enabled Business - Traffic To Integrated Website Driven By OnLine Advertising
59. Missing In Action Site No Website No URL No Website Your Name Is Serving Other Retailers Your Brand Identity On the Web Is For Sale
84. E-Enabled BusinessOnLine Advertising Drives Traffic To Integrated Website 1st Listing, Highest PPC Through Simmons 3rd Highest Listing PPC On Store’s Own Purchase 1st Listing On SEO Organic Search
85. E-Enabled BusinessOnLine Advertising Drives Traffic To Integrated Website Customers within Rotman’s Delivery Area Can Shop, Buy OnLine or Complete A Purchase after Visiting Their Store
92. First Choice Total Choice RESEARCH/ENGAGEMENT CONSIDERATION/COMPARISON PURCHASE Search Is Preferred By Your Customers Search engine Manufacturer’s website Colleague Blog review Content website Magazine/Trade publication Manufacturer’s email Trade show Online retailer Local retailer Community websites E-mail newsletter Manufacture’s Blog IAB Engagement studies 2007
93.
94. Do you know when & where your audience is searching?
99. What Can You Do With Search? Don’t just spend, spend wisely Competitive analysis Pre-launch optimization (SEO, PPC) Creative & offer testing Website optimization & analysis Targeting: Geotarget, dayparting, etc Multichannel analytics With minimal effort, improve performance by 20-30%
110. Why Social Media Marketing? Because it works! 7% increase in word of mouth advocacy unlocks 1% additional company growth 2% reduction in negative word of mouth boosts sales growth by 1%
113. Define Your Brand & Leverage It A Brand Is… A Personality A Promise From the Retailer to their Customer An Expectation An Asset with a Financial Value
114. Brand Development Pyramid The Essence Of Branding Emotional + Personality Values Margin Reward Features Price - Rational Function
116. Elements of a Retail Marketing Mix Advertising & Promotion Broadcast – TV/Radio ROP Free Standing Inserts Outdoor Direct consumer communication Direct mail Email blasts Newsletter Interactive Pay Per Click Banner Ads Sales associate training & sales process/tools Merchandising Store Design/POS Store design Sales aids/signage Public relations Corporate Community activities Affinity marketing & Website SEO / SEM Corporate positioning Product positioning Promotion positioinng
117. The Marketing Funnel Every Element Of The Marketing Mix Should Consistently Support Your Brand Position Advertising / PR/ Direct Consumer Communication, OnLine Advertising Suspects Website Prospects Merchandise Assortment/Display Sales Process Close Customers The Result: Sales Growth, Higher Margins, Increased Consumer Satisfaction and Brand Loyalty
118. Integrated Marketing Can Drive Superior Results Sales Training/Process PR Merchandise Asst/ Display Website/ Interactive Marketing Advertising & Promotion Individual Project Approach Integrated Marketing 1 + 1 Can Equal 3!!
119. Selecting The Right Key Vendors and Resources You Don’t Have To DO This Alone!!
120. Change is Necessary Your Cheese Has Moved “Old Days” are gone Vendors provide limited interactive marketing help Old tools work at the top of the funnel, but interactive marketing is a requirement Ten years ago, - average consumer visited over 5 stores Today, its less than 2 The web and our time short culture is the difference.
121. Help Is Available Within The Industry & Outside Of It Inside The Industry Your Trade Associations Vendors At the Retailer Resource Center Web Developers E-Enabled Product Database Vendors Advertising & Marketing Service Providers With Interactive Capability Talk To A Wide Mix Of Potential Resources The Upside Is That They Understand The Industry & Your Business The Downside Is That There Are A Lot Of Canned Solutions Out There That Will Not Make Your Brand and Your Store Distinct If You Don’t Have Time, Get A Third Party To Help You Find The Right Solution
122. Help Is Available Within The Industry & Outside Of It Outside The Industry Interactive Marketing Trade Association & Groups Local and Regional Vendors Web Developers Advertising & Marketing Service Providers With Interactive Capability Try Your Local Ad Club Look At Peer Retailer Websites For Ideas & Potential Vendors Talk To A Wide Mix Of Potential Resources The Downside Is That They Often Don’t Understand Our Industry & Your Business The Upside Is That They Often Are Ahead Of The Market Technologically, Will Look At Your Business With A Fresh Eye, And Can Make Your Brand and Your Store Distinct Again, If You Don’t Have Time, Get A Third Party To Help You Find The Right Solution
123. The Key Is To Act!! Change Is Hard, But Delay Will Erode Your Competitive Position
124. Every Business Has Its Own Culture & ProcessesThe Way We Do Things Here Our Current Marketing Mix Made Us Successful In The PastYet, Our Cheese Has Moved!!! If You Have No Web or Interactive Marketing Strategy, You Must Get Started & Make It A Part Of Your Marketing Mix If You Have A Web Site And/Or An Interactive Marketing Program, Has It Been Integrated Into The Balance Of Your Store’s Marketing Mix? Are You Giving The Consumer The Information They Want When They Want It? Will Your Store Be Found In Their Search Process?
125. Change Can Be Hard Technological Change Can Be Intimidating
126. Change Can Be Hard The Challenge Is Changing Your Culture & The “Way We Do Things Here” - It’s All About People
127. Change Can Be Hard At The End Of The Day, It’s About You And Your Willingness To Grow & Adapt
128. Conclusion4 Key Success Factors Urgency and Adaptability: Increase your velocity and agility in dealing with the accelerating rate of change and its unpredictability Become Distinct or Extinct: Compete more effectively for your “share” of the consumers’ mind and shopping dollar by defining your brand and unique selling proposition. Compete in the Information Economy: The Internet has changed the rules. Adapt and leverage this opportunity or lose the game. Build the Intellectual Capital To Compete: Put together the right team of internal and external partners to address these issues. Commit to enhancing your personal intellectual capital regarding interactive media. Your business depends on it.
129. Reneé Loper Director of Marketing & Communications 601 N. 75th Avenue Phoenix, Arizona 85043 Office: 602-442-5611 Cell: 917-923-4236 Fax: 602-442-5718
134. PROCESSGetting from then to now Gather FeedbackDifferent users have different needs and priorities online Example 1
135. Identify & Prioritize Site Fixes Overlaps among user needs Most important Gather Feedback Different users have different needs and priorities online Example 1 2 PROCESSGetting from then to now
136. PROCESSGetting from then to now Identify & Prioritize Site Fixes Overlaps among user needs Most important Gather Feedback Different users have different needs and priorities online Example 1 2 Plan & Allocate Resources Leverage existing content & assets where possible Resources: Roles, Inhouse/Outsource Roadmap 3
137. PROCESSGetting from then to now Identify & Prioritize Site Fixes Overlaps among user needs Most important Gather Feedback Different users have different needs and priorities online Example 1 2 Plan & Allocate Resources Leverage existing content & assets where possible Resources: Roles, Inhouse/Outsource Roadmap Execute 3 4
138. PROCESSGetting from then to now Identify & Prioritize Site Fixes Overlaps among user needs Most important Gather Feedback Different users have different needs and priorities online Example 1 2 5 Plan & Allocate Resources Leverage existing content & assets where possible Resources: Roles, Inhouse/Outsource Roadmap Execute 3 4
141. Repurpose existing content wherever possible Set up schedule and content to make refreshes easy Know when or what to outsource Content Management System It’s never “done” and that’s a GOOD thing MAINTENANCETips to make it easier
143. Previous research has estimated that between 70% and 80% of U.S. adults have purchased something online. And according to Furniture/Today and HGTV's 2009 Consumer Views Survey, 44% of adult U.S. consumers have purchased home furnishings online. Occasional tables, entertainment furniture and youth furniture are the leading furniture categories purchased online, followed by desks and master bedroom. Home accents, such as wall décor and area rugs, have higher purchase rates through the Web. ~Furniture Today 7/2009 This reality has presented online retailers with opportunities to grab consumers wanting to buy. And they've done just that. The 20 online-only home furnishings retailers highlighted in this report alone sold about $1 billion worth of furniture during 2008. ~Furniture Today July 2009 ~Furniture Today July 2009
144. The experts are saying... "If you're not converting to commerce at your Web site, I don't think you'll be around 10 years from now,” said Ed Stevens, chief executive of Shopatron. His San Luis Obispo, Calif., firm provides e-commerce applications. It is a growing business, especially within home furnishings.
145. The industry is currently selling $12.3 billion online, representing9% of all category sales, according to research firm Forrester Research Inc. These numbers are expected to rise to 11% this year and more than double to $26.7 billion by 2012, the firm estimates.
146. Jewelry and furniture will pace online sales this holiday, comScore says… “The most robust growth in online holiday shopping will occur in Jewelry & Watches, where sales are expected to increase 67% year-over-year to $739 million in November and December of this year from $443 million a year ago, comScore Networks Inc. projects. The next strongest growth will occur in Furniture, where November-December sales will be up 58% to $1.7 billion from $1 billion a year ago, comScore says.”
147. Proportion of ecommerce sales as a % of retailing subsectors (US market) source: Forrester 2008, Morgan Stanley
148. "One cannot afford to not be in e-commerce," said Ethan Allen Chairman and Chief Executive Farooq Kathwari in an interview.
149. "We knew that the longer we waited on the Web, the more risk that someone else would be capturing that demand," said Jason Camp, senior vice president of retail.
150. “We estimate between 60% and 70% of people spend some time on the Web before or during the purchase process," said La-Z-Boy Chief Marketing Officer Doug Collier. With "more than a few million" visitors to its site each year, Collier said, La-Z-Boy wants to convert as many of those to sales as possible.”
151. Online marketplace? “In 2009 the wheat came off the chaff in online retailing,” says Nikki Baird, managing partner at research firm RSR Research. “The online retailers that just count on being the lowest price provider aren’t going to be around for the long term.The ones that survive and grow will be ones that run a very efficient operation and give consumers the best customer service and shopping experience.”
152. The strategy for identifying your marketing targets is based on two tried and true observations: The best customers for your product are existing customers. The people who have already used your product or a similar one or other people like your existing customers are most likely your best customers. Birds of a feather flock together. In choosing a place to live, people tend to seek out neighborhoods compatible with their lifestyles, where they find others in similar circumstances with similar consumer behavior patterns. Once established, the character of a neighborhood tends to persist over time, even though individual residents come and go.
153. Nielsen Claritas PRIZM® Profile Analysis ● ● ● ● ● ● ● ● Lively Merchant Buy Home Furnishings by Internet
154. The nature of the research Where Understanding Market Potential Index | Market Potential Index Report | 89 Locations - 50 mile radius Who Understanding PRIZM Profile Reports | Profile Charts & Reports Appendix PRIZM Cluster Narratives
155. We then use MPI reports which illustrate the PRIZM market potential for each of the DMAs in the study. DMAs are ranked by potential. Each of the MPIs shown on the report is part of a national index of the propensity to be online furniture buyers, weighted to reflect the PRIZM Clusters present within the market, using PRIZM An MPI of 122 shows that residents of this DMA should be 22% more likely than the national average to buy furniture online. To compute MPIs, Claritas calculates (1) the percentage of households within each Cluster in each of the markets reported on and (2) the equivalent of a sixty-six Cluster PRIZM profile report for the product, and then calculates a weight-averaged MPI for each of the markets.
156. Buy Home Furnishings by Internet, 1yr (A) (4.31%) percentage of MRI survey households that fit the profile.
157. Game Plan Categories Charts are useful in sizing your marketplace. PRIZM Clusters are scored according to their cross section of likelihood to be a customer by their likelihood to purchase a product in general. The resulting matrix consists of a grid of four likely scenarios: High penetration of the households using a product coupled by a high propensity to use the product, followed by High/Low,Low/High, and Low/Low combinations. This opportunity information is directional and does not replace the effectiveness of but instead complements the use of target groups. Custom target groups focus more on inherent demographic characteristics as opposed to sales opportunity characteristics. Game Plan Categories Charts assign PRIZM Clusters to one of four categories as indicated in the chart described on the following page.
159. PRIZM culminated years of research and development in a groundbreaking methodology that allows marketers to seamlessly shift from the ZIP Code level through the block group, ZIP+4, or ZIP+6 level—all the way down to the individual household level—using the same set of 66 segments. This single set of segments affords marketers the benefits of household-level precision in applications such as direct mail, while at the same time maintaining the broad market linkages, usability, and cost-effectiveness of geodemographics for applications such as market sizing and site selection.
160. PRIZM Profiling Claritas provided specifications for a PRIZM profile “Buy Home Furnishings by Internet, 1yr” using the Mediamark Research Inc. (MRI) Survey of American Consumers data. The profile was created from counts of survey participants who made online purchases of home furnishings in the last 12 months. Each MRI survey participant is assigned to one of the sixty-six PRIZM neighborhood lifestyle clusters. Each PRIZM Cluster represents a distinct consumer market segment comprised of households with similar demographics, lifestyles, and consumer behavior.
162. Age 35-54 Age 45-64 PRIZM® Profile Analysis ● ● ● ● ● ● ● ● ● Age 25-44
163. ~Keith Miller -The Becomers 1973 “Through the skill and aggressiveness of modern advertising – particularly on television – we know more about each other’s homes and personal habits than any previous generation has. Advertising has created an illusion of intimacy… I know something about what kind of cereal you eat, what you shave with, and what kind of clothes you wear in every room in your house.”
164. Three Essential Questions Who needs to be persuaded? What actions does this person need to take? How will you most effectively persuade that person?
165.
166. What Makes Personas Actionable? “A lost wallet lies on a Manhattan street, stuffed with cash. A white middle-income male New Yorker, between 30 and 44, picks it up. Will he look for the rightful owner, or pocket the cash? Who knows?”
167. What Makes Personas Actionable? But what if its George Costanza, the white middle-income male New Yorker between 30 and 44 from Seinfeld, picks it up, everyone knows exactly what he’ll do...”
168. In order to create personas, you will have to make perhaps the most concerted and in depth effort you've ever made to truly understand your customers. But the result will be representations of your customer base that you can use to model persuasive systems that address the why of customer behavior.
169. Meet some “real” Ms. Joneses from real our retailer’s files (and see if you can recognize the 43 separate data points woven into these excerpts): MEET CYNTHIA JONES: “A relatively new concept in jewelry stores that Cynthia had discovered on a trip to Spain two years ago, her little boutique was catching on here in [city]. Her husband, Tim, had used part of their investment portfolio and his contacts in the banking world to arrange the financing, and her artistic background lent itself easily to the buying and merchandising that made her store unique.” MEET AMY JONES: “Amy pulled into the garage and grabbed the dry cleaning out of the trunk of the BMW. She paused in her home office to check her email and quickly responded to several messages. Grabbing the laptop, she sat in her sitting room off the master bedroom and went online to check flights. Paul had mentioned he wanted to give his new skis a try, and they had read about a resort in the Berkshires that sounded very nice. She logged on to their frequent flyer program site to verify they had enough miles for the airfare.”
170. Meet some “real” Ms. Joneses from real our retailer’s files (and see if you can recognize the 43 separate data points woven into these excerpts): MEET LISA JONES: “I was mortified!” Lisa laughed. “When we showed up in the same golf skirt, I thought I would die of embarrassment! But the golf pro at the club let me start on the back nine, and no one seemed to notice. Hmmm… I think I’ll try the TuttiFrutti Pink.” Lisa and her manicurist laughed over the faux pas and Lisa settled into the chair for her weekly treatment. “What else has been happening in [city]? John and I just got back from Italy – no, we didn’t take the kids, it was for our 20th anniversary – and I haven’t had a chance to catch up on all the latest gossip!” MEET KIM JONES: “I’m so glad to be home!” Kim Jones took off her smock and hung it behind the door. “I’m starving!” She picked up the cordless telephone pressed speed dial #1 for mark’s cell. “Mark, it’s me. I’m ordering from Papa John’s. Do you want green peppers on the pizza? The movie starts at 7:10. Yes, yes – I promise I’ll be ready this time! But you’ll have to drive me through the bank if we’re going out afterwards; I need to cash my paycheck. Do you want to go dancing or to the pool hall? Or both!” MEET MICHELLE JONES: “True, it took two incomes to keep them afloat. Michelle’s part time job in the office at a printing company in [city] offered flexibility in her hours and the extra income was appreciated. Her schedule allowed her to be home shortly after the children got home from elementary school. She turned the minivan into a mini-retreat during the 20-minute commute, listening to the local Christian radio station or singing along to a country tune.”
171. WHO, WHERE, WHAT, WHY & HOW – NOW WHEN? Persona based advertising can help you discover who you need to attract to your store. You can learn where she lives, what she does and even why she does it. You can figure out how you’re going to speak to the right Ms. Jones with the right media and the right message and deliver the right moment. The “when” is entirely up to you. Advertising in the past may have created an illusion of intimacy, but you have the ability to create a reality where Ms. Jones will love to spend her furniture dollars. She will respond when you use persona based advertising to speak to her personally.
Similarities?. E.g. More time spent more money spent (a la mega bookstores): according to a series of joint studies in online retail by Bain & Company and Mainspring. According to the research, the more often a customer visits a site, the more likely that customer will spend an increasing amount of money and generate more profits for the online retailer. For example, in apparel, the average repeat customer spent 67 percent more overall in the third year of his or her shopping relationship with an online retail vendor than in the first six months. And, over three years, customers referred by online grocery shoppers spent an additional 75 percent of what the original shopper spent. - http://www.clickz.com/showPage.html?page=331431. To what extent will competition stay the same: eCommerce offers visibility to the smaller players. Can we expect a similar divide online, because of budgets, margins, etc
These companies tell you they are you friends. They want to partner with their retail customers. I say this is crap. Now I realize there are some real big boy site design companies who believe working with the vendor on web development is beneficial for the dealer. I don’t. Maybe that’s why some think I’m crazy.
But until I see my retail friends and customers making the sort of money the should online I’ll continue to push against the idea of “partnering” Affiliate website continue to die. They are old fashioned. People don’t believe the slick packaged presentations.
Customers are looking for real feedback. It’s gritty. It’s truthful. It’s the good the bad and the ugly.
66 clusters, 80 top markets in America, using the number one retail research firm in the world. This data is relevant and the data is fresh- December 2008. We are as far as I know the only company in the furniture business to have done a national study in the last 24 months. What do you think this data is worth in your future?
Of the top 7 clusters of furniture buyers- only one group goes down into their 20’s. This idea that only the “young people” buy furniture online is hype. It is wrong. You online storefront and digital footprint will make our break you moving forward. If you don’t like my numbers I would respectfully suggest you challenge Neilson/Claritas not me.