IKEA: renowned for its functional homeware. Every home goods brand strives to achieve the name recognition of this powerhouse, but while business continues to boom for the retail giant, predicted furniture sales slow down in the wider market (to just 1.9% over 2022).
However, you don’t need to be as big as IKEA to see success this year. Despite the economic climate, there are endless opportunities for home retailers to engage with (and convert) their customers. Here are 5 examples to get you started.
5 home retail marketing strategies
1. Text message marketing
SMS marketing turns browsers into buyers. In fact, 51% of customers want to receive texts from their favorite brands.
Text messages have an open rate of almost 100%, meaning you can directly reach your customers and grab their attention—fast. Wunderkind client, Rugs USA, opted to follow up with customers via text to assure them their order was being worked on, and encourage them to make a repeat purchase. Not only does this text marketing reassure the customer they’re being taken care of, but it creates potential for another revenue-driving opportunity immediately after the sale.
2. Sale timer ads
Want to know what to avoid when creating impactful ads? Annoying your users.
63% of users who install ad blockers do so because they find ads intrusive, disruptive or annoying. Instead, users prefer post-content ads that appear once they’ve disengaged from the content they were reading.
For an added sense of urgency, use post-content timer ads to promote limited-time offers. Including countdown clocks can increase conversion up to 400%, as shoppers feel pressured to meet a deadline to claim their offer.
Mattress Firm selected a post-content masthead ad feature that drove customers to their sale, where they could claim up to $300 off their favorite brands. With limited time to do this, customers knew they had to act quickly, thereby accelerating conversions and revenue.
3. Behavioral-triggered communications
Nearly 88% of online shopping carts are abandoned, so targeting your customer after that initial browsing session is invaluable. In fact, using hyper-personalized marketing techniques can help you regain 3-14% of lost sales.
Wunderkind client Weezie—a home accessories company offering monogrammed towels and robes—opted to treat customers who abandoned their cart to a further $15 off when returning to complete their purchase. The company used first-party data to send a follow-up text message with a discount code and close the deal instead of potentially leaving revenue on the table.
4. Email marketing
Email marketing has stood the test of time for a reason across all categories, not just home retail. One of the many reasons for this is email’s average click-through rate compared to social channels such as Facebook and Twitter. The numbers speak for themselves:
- Email marketing: 3.57%
- Facebook: 0.07%
- Twitter: 0.03%
Why is email marketing so effective? Put simply, customers have opted into direct communications, and welcome promotions for products, announcements, discount codes and more from their favorite brands. Email can also be used for recovering abandoned carts, cross-selling and upselling, and driving traffic to your site—all proven revenue drivers.
Here, luxury home decor and furniture brand, One Kings Lane, invites customers to take advantage of their 25% anniversary discount. Similar to the timer used in the advertising panel, this email marketing sets a deadline for customers to take advantage of the sale, announcing it ‘ends tomorrow.’ Letting customers know these discounts won’t last forever drives urgency and quick conversion. The glamorous and simple design of the email is also in keeping with the brand’s luxurious look.
Moving beyond blanket emails, 88% of customers agree they’re more likely to open an email if it looks like it’s relevant and tailored to them. Take your email marketing to the next level by segmenting your target audience by demographic, intent data, or behavioral data to send more targeted communications. This way, you can catch their eye by including copy and beautiful images tailored to these customers’ interests.
5. Interactive ads
Don’t allow users to passively view your ads—encourage engagement with them. Interactive ads have an engagement rate 300% higher than non-interactive ads. Build brand awareness by letting your customers see for themselves what you have to offer, whether that’s through gamified ads, video selectors, or shoppable creatives. Build a user-friendly ad experience to drive conversion.
Wunderkind created an interactive post-content ad for home electronics brand Bosch. The creative allowed the user to engage with the content by exploring a home scene and learning more about the products. The ad is non-intrusive and engaging, meaning customers are more likely to have a positive brand perception and convert.
Drive revenue for your homeware brand
In the home retail space, it’s clear that building brand affinity and a connection with customers pays off. Whether through email or text marketing, engaging ads, or behavior-triggered communications, customers respond to personalized content.
Want to know what we can do for you? Find out how Wunderkind drove 15% of total digital revenue for lighting retailer, Capitol Lighting.