Navigating Inflation: Strategies for Mattress Retailers to Succeed in a Changing Economy
Worried about inflation effecting your mattress sales? The right strategy can make all the difference. From embracing innovation to boosting your online presence, discover six smart ways you can drive profitable growth despite challenging economic times.
Strategies for Mattress Retailers to Succeed in a Changing Economy
Inflation is a force to be reckoned with, impacting shoppers and posing challenges for many mattress retailers. As of May 2023, inflation rates were 4.05% – well above the long-term average of 3.28%.
And consumers are definitely feeling the crunch. Instead of making deferrable purchases like mattresses, they’re prioritizing necessities, such as housing, clothing, food, and gasoline. For mattress retailers, adapting and devising effective strategies to offset this impact is key to thriving through economic challenges. Here are six valuable insights to help you get started.
1. Adjust your pricing strategies
You may need to adjust your prices with inflation to maintain profitability. But be careful. Raising your prices too much or too fast may turn off customers.
Instead, try taking a balanced approach by analyzing market trends, cost structures, and competitor pricing to determine reasonable price adjustments that align with customer expectations. You could also consider offering value-added services, such as complimentary delivery, extended warranties, or free mattress accessories.
2. Communicate your value proposition
During times of inflation, it’s more important than ever to effectively communicate the value proposition of your products and services. Highlighting quality, durability, and the long-term health benefits of a new mattress can help customers understand the value they’ll receive despite rising prices. Emphasizing warranties, comfort guarantees, and exceptional customer service can also entice shoppers to make a purchase.
3. Offer financing options
To counteract the financial strain of inflation on shoppers, explore offering attractive financing options. Partnering with reputable financing providers enables customers to spread out their payments over time, making larger purchases more manageable. Additionally, by extending financing options to consumers of all credit types, you can not only boost sales but also broaden your customer base. It's a win-win solution that benefits shoppers and retailers alike.
4. Promote customer loyalty programs
Inflationary periods present an opportunity for mattress retailers to reinforce customer loyalty through tailored programs. Loyalty programs can reward repeat customers with exclusive discounts, early access to promotions, and special perks. Referral reward programs are another effective option. By fostering a sense of loyalty, you can retain customers and gain new ones even in the face of inflationary pressures.
5. Boost your online presence
Today’s consumer typically begins their mattress shopping journey by researching online and evaluating customer reviews. By establishing a strong online presence and investing in digital marketing initiatives, you can reach a wider audience and drive sales.
One way to do this is by encouraging customers to leave reviews while also monitoring online feedback and responding accordingly. You can also leverage social media platforms to engage with customers, share informative content, and run targeted advertising campaigns.
If you have an e-commerce site, ensure it’s visually appealing and delivers a seamless shopping experience. It's also important to optimize your site for SEO to improve visibility and attract organic traffic. You can even optimize for local search by incorporating location-based keywords throughout your site.
6. Embrace innovation
In challenging economic times, mattress retailers can set themselves apart by embracing innovation and differentiation. This may involve introducing new product lines with unique features, leveraging advanced sleep technology, or enhancing the overall customer experience.
Augmented reality (AR), for example, is an excellent innovation to embrace if you want to stand out. With AR, shoppers can overlay a virtual object, such as a sofa or dresser, into their homes to see how it looks before making a purchase. It’s an innovation that more consumers are seeking out, with 32% already using it and 66% interested in it. What’s more, 80% of shoppers felt more confident in their purchases when they used AR.
By implementing AR or something equally compelling into your business, you can attract and convert customers even in tough times.
Give your business a competitive edge
While inflation may pose significant challenges for mattress retailers, you can rise above and succeed in a changing economy. The right strategies can not only help you overcome obstacles but also build a strong foundation for long-term success and growth.
About Snap Finance
Founded in 2012, Snap Finance helps customers get what they need through thousands of U.S. partners. Snap-branded solutions include lending and lease-to-own financing solutions to help you grow your business and attract new customers. Snap’s proprietary, machine learning-based decision-making technology brings modern payment options to consumers who may not qualify for traditional financing.(1)
For more information, visit Snap Finance.
Snap-branded product offering includes retail installment contracts, bank installment loans, and lease-to-own financing. Talk with your local Snap sales representative for more details on which product qualifies at your store location. For more detailed information, please visit https://snapfinance.com/legal/financing-options
(1) While no credit history is required, Snap obtains information from consumer reporting agencies in connection with submitted applications. Not all applicants are approved.