Data-Driven Expansion Boosts Sales for American Furniture Warehouse | Retail

11/11/2024

RRD’s NXTDRIVE™ platform helps retailer unlock new markets, increase sales by 55%

CHALLENGE

American Furniture Warehouse, a lifestyle furniture retailer, sought to expand its customer base beyond its traditional area, especially in Texas and Arizona. Despite a strong local reputation, they sought to harness data to target new regions and boost revenue. Ultimately, their objective was to gauge both immediate and future revenue potential by diversifying their digital media outreach in these areas.

SOLUTION

To tackle this challenge, RRD implemented a comprehensive strategy using NXTDRIVE™, their customer data marketing platform. At the foundation of RRD’s approach was a highly consultative layer that worked closely with the client to obtain their critical KPIs. RRD enriched the retailer’s first-party customer data with information from Consumer Graph™ and proprietary audience modeling. This combination revealed an overlooked opportunity, and RRD recommended the furniture retailer extend their standard 20-mile trade radius in Texas and Arizona. The goal was to pinpoint and engage premium lookalike audiences within an expanded 40-mile radius. Emphasizing learning, RRD believes that analyzing performance is an essential cornerstone of every campaign.

RESULTS

The expanded targeting strategy proved invaluable. By reaching out to the broader geographies, American Furniture Warehouse witnessed a substantial 50% customer lift across all segments. This strategy brought in more customers and led to a 55% boost in sales. Additionally, the insights and learning from this campaign not only equipped the client with the knowledge to iterate their future media executions but also offered robust strategic evidence underscoring the benefits of continued investment in media channels, particularly Connected TV. Results included:

• 55% sales lift: Expanded radius test geographies sales lift increase over control geographies
• $352K revenue increase: Expanded radius test geographies sales lift increase over control geographies
• 7:1 expanded radius return on ad spend

The success of this strategy had reverberating effects on the retailer’s overall marketing approach. Built on a virtual learning cycle, which is foundational to every NXTDRIVE implementation, insights gathered from this campaign shaped subsequent discussions on media recommendation and strategy for Q4. As a result, there were significant shifts in budget allocation, particularly favoring high-performing media types such as Connected TV. American Furniture Warehouse, now equipped with data-driven insights and a proven strategy, looked forward to further expanding its reach and capitalizing on untapped market potential.