Bed Bath & Beyond appears to have been one of the few dealers to benefit as the coronavirus pandemic changes consumer behaviors, with all the company reporting a 6% rise in comparable gross sales last quarter. Major to the brand’s success comes with been a shift to handheld that has been accelerated from the health crisis, as this saw an 85% increase in electric sales earlier this year and even converted more than 2 million dollars store customers to digital types.
The growth provides the chain’s executive leadership has been reshaped. Among the additions to your revamped C-suite is Cindy Davis, which was brought on as account manager vice president and chief manufacturer officer in May. Davis joined the company after serving as EVP and chief digital marketing expert at L Brands, where this worked to accelerate digital potential, build customer loyalty and push growth — tasks she is actually also undertaking in her brand-new role.
Davis spoke to Marketing Dive in what shoppers want this holiday season, the way data is driving its virtual platform strategy and why the manufacturer is being more strategic with their popular coupons.
The following interview has been edited for clarity and brevity.
MARKETING STRATEGIES DIVE: What consumer behavior variations are driving the marketing for the purpose of this holiday season?
CINDY DAVIS: Our customers do require a meaning of normalcy. Someone was just telling me about a brand new song by the Jonas Friends called “I Need You Christmas. ” That’s the way people are really feeling: We many of just need this right at this time. They might be preserve some of their traditions as a family, nevertheless at the same time, broad having to pivot to establish new traditions, and they’re not going to travel as much.
We saw a significant enhance both from Google and Pinterest in people which were hosting Thanksgiving for the very first time period. And we put into play pointers for hosting Thanksgiving — Just what roaster do you need? How does one set a Thanksgiving table? — as people want to definitely embrace these new traditions.
The other thing our company is seeing that we’re really answering to is how the holidays are going to be distinctive from a gift-giving standpoint. They’re not traveling, and they’re not even giving experiences, which has long been a go-to Christmas gift. The pivot is to gift items for the home, and we’ve been really trying to leverage of which. Should you glimpse our site, you’ll discover we’ve already got tips for the purpose of the holidays; home appliances, small machines and electrics are up to the break season; the cozy tosses and blankets and comforters will be up. So we’re really hovering in to the insight that customers usually are really imagining gifts for your home as truly the perfect reward for this holiday season.
How is data operating these marketing decisions?
DAVIS: We have now doubled down on data and customer insights more than ever previously before because customer actions are transforming so much. You have for you to keep your eye on your pulse of those customers.
We have really bent into the omnichannel services of which will give our customers trust shopping how ever they will go shopping. We didn’t have BOPIS, curbside and same-day delivery last winter season, and now it’s more than 15% and heading towards 20% in our digital business. That’s at us as marketers, showing a fabulous customer she can shop however she would like to shop.
We have identified what most of us believe is a really strong and differentiated customer value proposal for the Bed Bath & Beyond brand, and that it is all about tends to make easy to obtain her to realize the potential [for her home] with the exact rallying cry “Unlock the magic in every room. ” Toy trucks always been about everything house and value and ease, although inspiration is something that our customers are really craving. They may in their homes more, she or he is looking for ideas — not likely just items.
We understand she wants to head for you to the stores for inspiration; for a normal environment, she may perhaps touch and feel the rest room towels to get ideas. But the exact onus on us now because marketers could be to bring that motivation to digital, social and all of our site.
How are usually you leveraging digital platforms to help make that change?
DAVIS: Pinterest is a place where users are inclined now for inspiration, primarily of the home. We’ve always happen to be a key player on Pinterest; they’ve been a go-to sales channel for us.
Just what we’re doing differently with Pinterest is more full-funnel campaigns and also we’re seeing significant increases within conversion when we do which means that. We’re partnered with Pinterest on a lot of the certainly unique things they’re doing together with inspiration all throughout the direct, starting with how she’s considering about decorating her house in support of the holidays to being capable to showcase her items that will help her make it happen and even make her personality and your ex style shine through, all this way to the base of the particular funnel at conversion, with precise products that she can influence to bring that to living.
We’re also executing more storytelling on our web page, one of our biggest internet marketing channels. We’re refreshing it extra often. We’ve got tons even more content on the site as opposed to we’ve ever endured before, and better value communication, and easier to be able to navigate. We’ve always had an important really robust digital business, however , we’re making it even additional of an touchpoint for our consumers and bringing that inspiration in order to our site on top of that.
One story taken from the Person Day was a shift at a distance from Bed Bath’s ” overreliance” on its coupons . How do you message close to what is now such a popular part of the brand?
DAVIS: Coupons are part of our own DNA. They’re a strategic formula for us and they are an elite advantage for us. We’re regarded for that coupon and you’re not going away from often the coupon. Whatever we want to carry out is make sure that we delivering our customers the variety of value they are looking available for. Some customers want to usage the coupon, some customers wish to be able to access an everyday low price.
We have done the deliver the results, through research and data evaluation, to find out who our five main customer segments — the nester, the minimizer, the juggler, the innovator and the creative — and we know which ones are motivated more by coupons versus an everyday low price, versus an owned brand or an opening price point. We’re being more strategic about making sure that we’re delivering the that customer is looking for, dissimilar to just assuming that everybody wants a coupon.
Coupons are still an incredibly, very essential asset for us, but we’re using data to get smarter about strategically and surgically delivering the suitable value to customers in our stores, on our site and throughout all of our marketing vehicles.
Some of those marketing vehicles is Beyond+, the brand’s app-based membership program. What role does Beyond+ play in capturing first-party consumer data?
DAVIS: One of the consumer insights that we identified early on is that customers are going to want to discover the holidays earlier and spread out their holiday shopping. So right from the first week of October, we apply a special membership incentive for them to join Beyond+ so they could have the benefit of the values and the free shipping all in the holiday season.
When you signed up for this paid program for $29 a year, you got a $29 giftcard for the stores. The reaction has been amazing, and those customers are spending aside from the $29 bonus card.
People engaged in Beyond+ shop more often and they spend more, so we have even richer data on individuals shoppers. They also have access to services at a discount, like our interior design service Decorist, and we learn more about them as they participate in that as well.
We experienced an even bigger, broader opportunity, its no wonder that we’re doing the work to create a broader loyalty program beyond the paid program that would engage more of our customers, and give us that same rich data about all of our customers, and also motivate them through that new program to shop across all of our banners because there’s such an upside there. It really doesn’t require a whole lot of spend, it just requires us being focused that way to take advantage of that opportunity.
Source: marketingdive. com
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