Education and understanding current trends.
For Independent retailers, prioritizing these two things is crucial, especially in today’s uncertain and ever-changing climate.
During our bi-annual NMG PrimeTime event and expo, we prioritize both education — through the Nationwide Learning Academy — and discussing current trends and events to better understand how to navigate them together.
At the August 2024 PrimeTime held in Las Vegas, Mattress University was a well-attended session that blended both the educational and current marketing trends to offer key industry insights and strategies to drive consumer traffic and enhance overall engagement.
Led by NMG’s own Chief Marketing Officer (CMO), Aaron Bundschuh, Mattress University featured a panel of three additional CMOs from leading Vendor partners:
- Joel Dewberry, CMO for Malouf Home
- Tim Oakhill, CMO for Serta Simmons Bedding
- Tom Murray, CMO for Tempur+Sealy Inc.
Focus Advertising Strategy on Solutions
Tempur+Sealy’s Tom Murray set the tone for the current state of the mattress industry with a bold statistic that spend on advertising is down 20 percent year-over-year. Given that 2024 is an election year and the housing market is down, this may not be surprising news; however, it also doesn’t justify cutting ad spend as the best response or strategy for Q3 and Q4.
All three panelists agreed that spending ad dollars wisely — without major cuts — can yield positive results even in a down trending market.
Joel Dewberry of Malouf Home advised that, instead of pulling back on advertising that may not be working, use this time as an opportunity to test and be intentional with the budget that makes sense for your business.
Both Murray and Dewberry emphasized a focus on solution-based messaging that will resonate more with consumers in need of a mattress that will fix a problem. For example, Murray cited that about two-thirds of households include someone who sleeps hot, which clearly shows the need for messaging that informs these households about cooling features.
Relevance is Important
Tim Oakhill of Serta Simmons Bedding highlighted the importance of leaning into relevancy, especially in a saturated market. Presenting value is the key to breaking through the clutter of competing messages to differentiate your business. Oakhill offered three keys to creating a unique value proposition.
- Focus on relevancy. What is the relevant thing your business stands for that also drives sales?
- Keep it simple. Focus on delivering your relevant message as simply as possible. It’s not always about what you say but about how you say it.
- Continuity matters. Maintain consistency with messaging at all touchpoints, from the top to bottom of the funnel.
Given that the mattress category is slow for repurchasing and consumer attention spans are at about 11 seconds, having a value proposition that engages is critical.
To put it into perspective, Oakhill shared the example of Apple marketing its iPod at a time when there were other similar devices on the market. Rather than leaning into technical specs like bytes and bits and memory, Steve Jobs and the Apple team translated that information into a simple, relevant message: “10,000 songs in your pocket.”
As Oakhill so passionately emphasized, know what you stand for and say it in a way that resonates.
Optimize Promotional Messaging
Targeting in-market consumers with a relevant message does not mean you need to rely on promotion-based ads. Even in sluggish economic times, sales are not always the most compelling reason for a consumer to buy. Still, promotions can take on a more supporting role to enhance relevancy messaging.
Murray explained that starting with a message about solutions to sleep problems is key to attracting traffic and engagement — and if the product also happens to be part of a promotional event, that secondary messaging can help close the sale.
Yes, promotional periods are still important. In response to high consumer anxiety around spending in an election year, Dewberry offered these tips to manage ad spend in the back half of 2024:
- Be aware that consumer spending is cyclical. Post-election purchases will increase again.
- Be aggressive around Black Friday and through to the end of the year, with a focus on qualified customers.
- Be sure to align your own promotions with manufacturers’ promotions to maximize margin and help your shoppers avoid confusion.
Leveraging AI (Artificial Intelligence) in Advertising
No discussion on current trends in advertising would be complete without at least mentioning Artificial Intelligence (AI). PrimeTime’s Mattress University panel took a deep dive into this sometimes controversial, yet impossible to ignore topic.
Oakhill shared his experience working for IBM when Artificial Intelligence was in its infancy. When asked about the purpose of and best-case uses for AI in marketing and advertising, he had this to say:
The purpose of AI is to speed up processes that allow business owners and marketers to more efficiently accomplish what they need to do.
As for how to best leverage AI, Oakhill offered these ideas:
- Speed up the process for A/B testing
- Determine word choices that resonate with customers
- Create more awareness, consideration and conversion through media buying
Of course, ethics will continue to come into play with Artificial Intelligence, and Oakhill offered a word of caution to not take AI at face value, but instead vet it out to make sure any AI-generated content makes sense.
Murray added that, while AI can feel overwhelming, it helps to consider the possibilities and focus on a few areas where it can be useful for your business. For example, generating analytics and creative messaging can help to filter your strategy and “serve up solutions” to your customers. Murray also added caution to be aware of any potential ownership rights regarding AI messaging used verbatim.
Dewberry also pointed out the power of using AI data to create efficient advertising campaigns, along with two ideas to better connect with your customers.
- Use AI-powered chatbots on your website that are trained to take on your brand’s personality, values and processes.
- Create sales scripts for associates with an emphasis on offering a personal touch or messaging that is relevant to your business.
Should you choose to make Artificial Intelligence part of your advertising strategy, these three industry leaders have given you several suggestions to start testing today!
Overview of Tactics and Key Takeaways
In conclusion of our Mattress University panel discussion, each panelist gave an overview of advertising tactics recommended to navigate the mattress industry in the remaining months of 2024.
Closing Thoughts from Joel Dewberry, CMO, Malouf Home
- Don’t lean out of advertising. Lean in and be intentional with your budget.
- Stay agile by blending the digital and in-store experience.
- Embrace timing now to prime the waters — before the election, before promotional holidays and before consumers are ready to buy so they will know where to go when they are ready.
Closing Thoughts from Tim Oakhill, CMO, Serta Simmons Bedding
- Be aware of your “chess moves.” Know ahead of time what steps you will take and why you are doing what you’re doing.
- Know who you are and what makes your business unique and relevant.
- Create a value proposition that gives your customers reasons to believe (RTB) in your business.
- Basic advertising tactics will remain the same, even as AI and technology continue to advance.
- “Words are very expensive. Use them sparingly.”
Closing Thoughts from Tom Murray, CMO, Tempur+Sealy
- Cutting your ad spend may seem safe, but it won’t help.
- A soft market is an opportunity to take a greater share of the market when other businesses might pull back.
- Don’t cast a wide net with your advertising. Be specific with relevant messaging and be mindful of what the in-market consumer wants.
- Know the reason why a consumer should choose your store.
- The premium category is thriving due to less impact from the economy.
- Customers likely want more than a mattress. Remember to upsell things like adjustable bases, pillows, bedding and more.
- When it comes to promotional periods and holidays, make hay while the sun shines.
Which idea(s) will you start implementing today?
