The Great American Home Store, a Memphis-based furniture retailer, has two flagship stores in the area, as well as 60,000 square feet of showroom and 80,000 square feet of warehouse space in one location. “The showroom experience is unparalleled in our market,” says Justin Brown, digital manager for the retailer.
The company, which has five stores in total, can compete effectively with big box retailers, Bowen adds. “We try to hire the best sales people and we offer more of a hometown, higher level of customer service. They are neighbors who sell to neighbors. While we can’t beat the big box stores on price, we beat them on inventory, availability, and quality.
The company is also heavily involved in local charities and other efforts to give back to the community, Bowen says.
Even with all of these efforts, the business depended on traditional advertising to generate foot traffic and sales, relying heavily on broadcast advertising in particular. But more and more people were cutting the cord and ditching traditional TV for over-the-top (OTT) streaming services like Netflix and Hulu, which means they don’t see the ads shown on TV. That’s not good, given that the Great American Home Store has built its name on brand awareness, according to Bowen.
With an increasing percentage of prospects moving away from traditional TV, radio and print for digital options, it has become increasingly necessary for the business to be able to track ad spend on digital channels and compare returns to what she received from traditional advertising.
“We found ourselves at a crossroads,” says Bowen. “How do we measure what we have always done compared to what we were doing digitally? “
The company considered a few solutions before choosing the LeadsRx attribution program. LeadsRx allowed the company to measure the effectiveness of not only traditional delivery, but also OTT and other campaigns. The platform also provided insight into customer journeys, including online and offline touchpoints, and could tie it all together.
Great American Home Store went live with LeadsRx at the end of 2019. While the initial reason was the switchover of consumers to digital, it turned out to be a fortuitous decision when the COVID-19 pandemic struck, forcing the temporary shutdown warehouse and showrooms. and resulting in significantly reduced foot traffic, even when stores have reopened.
The reduced activity also meant a greatly reduced advertising budget. The information from LeadsRx helped Bowen decide where to cut.
“We were able to get a ton of information on all of our marketing efforts, on how people interact with the ad, in conjunction with the website, and on the number of [customer journey] paths there are, ”Bowen says.
Before LeadsRx, the results of some advertising campaigns were largely based on guesswork. Now, Great American Home Store had a clear picture of the benefits of different marketing efforts.
“LeadsRx allowed us to compare our ads to each other and see which ones were generally performing the best,” says Bowen. “We can now follow OTT advertising to the point where we can follow [resulting] store visits and even sales.
The results have been excellent on both sides of the ledger. Even with a 50% reduction in the advertising budget, sales increased by 12%. Ecommerce sales rose 1,200%, although Bowen notes that the huge jump was linked more to the pandemic than to LeadsRx.
With LeadsRx, the cost of acquiring customers has dropped from $ 131 to $ 55.
Based on these results, Great American Home Store plans to use LeadsRx to help create a Business Development Center, which will use prospects to build relationships with customers before they even enter the store.
Since deploying LeadsRx, Great American Home Store has achieved the following results:
- 12% sales increase; and
- reduces customer acquisition cost from $ 131 to $ 55.