Ashley HomeStore is the #1 furniture retailer in North America. The brand uses a unique structure as a manufacturer, retail owner-operator, and licensor to more than 150 licensees. The New Mexico franchise comprises three locations: Albuquerque, Farmington, and Santa Fe.
THE CHALLENGE
Albuquerque was seeing a steady increase in residents as the city grew. Our research showed that consumers are more likely to purchase furniture during significant life changes, even more so during new home purchases. The expectation for an influx of higher ticket purchases at Ashley HomeStore was not being met, despite a traditional direct mail campaign. A new approach was needed that would gain a larger market share from this segment.
THE APPROACH
In order to get in front of potential customers earlier in their decision-making process, in-market signals were used, such as new utility accounts and USPS registrations to IP target consumers digitally. This allowed touchpoints during the biggest window of opportunity: before a home closing.
Historically, Ashley HomeStores rely on promotional messaging to drive traffic to their stores. However, sales data shows that movers are less concerned with promotional pricing and more sensitive to product availability and a flexible delivery schedule. Messaging spoke directly to new movers, maintained a strong brand presence and extended a warm invitation to visit the store.
THE RESULTS
By converting direct mail dollars to IP targeting, we reached a profitable audience in their time of need with a very specific message. A tremendous return on ad spend was achieved, accounting for $341,460 in matched in-store sales at a 1.8% cost of advertising.
