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Window Treatment Advertising

Survey responses indicate retailers rely on satisifed customers to do most of their advertising.

by John J. Lichty

The Draperies & Window Coverings millennium marketing surveys (and other surveys scheduled for 1999) are in-depth studies designed to explore the many areas of window coverings advertising and marketing. The answers should provide insights to those involved in retail marketing at both the store/studio and manufacturing levels. What follows are compilations of the answers from the second part of our survey about retail advertising among home fashion retailers, managers and designers/decorators, which ran in the June 1998 issue of D&WC. These questions were more detailed than those in Part 1. (D&WC, July 1998, results reported in D&WC, November 1998.) Respondents had to provide percentage estimates, usage rankings and opinions that required time and consideration. Most responses in Part 2, as in Part 1, came from independent specialty store owners and managers, also from decorator shops and interior design studios. These results should be especially interesting to anyone involved in those retailer/supplier areas. Marketing people in any area should find some helpful information in the rankings and opinions that follow. • Question 1: Sales Volume per Category The first question we asked was to list the percentage of window covering sales by major categories. 1. Residential (homes, condos, etc.)   100% Residential sales only   25 Between 75% and 90% of sales   56 20% or less   19       In-home sales?   94% 75% or more of sales   61 50% or more   70       In-store sales?   61% 50% or more of sales   31 less than 50%   38       2. Contract (offices, restaurants, etc.)   75% In-home sales?   70 50% or more   45 25% or less   62       In-store sales   45% 50% or more   45 25% or less   62 Confused? Very understandable. To me, the answers verify results of past surveys and those we've all observed in our industry: • Residential sales are the core business for window coverings outlets. However, 75 percent of the total do report varying percentages in contact sales. • In both residential and contract markets, most reporting stores with custom products rely more on in-home sales than those in-store. As noted before in Part 1, this is undoubtedly true to a greater extent for specialty and interior design stores/studios than in other kinds of home fashion outlets. • Question 2: Best Contact Sources What are your best sources for custom and in-home leads? (Ranked in order.) 1. Word of mouth   100% Certainly, one of the best, if not the best source for window covering customer leads. Fifty-six percent rated word of mouth first and the remaining 44 percent rated such personal advertising as second. 2. Community involvement   62% Closely related to word of mouth for the number of contacts that bring in solid sales leads. 3. Directory Ads   56% All respondents ranked this excellent lead source at least third or higher. 4. Newspaper Ads   44% All respondents ranked these fourth or higher. This year's percentage is more than double the 18 percent reported in a similar survey 10 years ago. 5. Model Homes or Home Shows   43% Also much higher than in past surveys. 6. Storefront signage   33% Walk-in traffic is a good source, too. 7. Consumer "how-to" clinics   19% Also a higher percentage than in past surveys. 8. Telemarketing   6% Apparently, specialty stores/studios do not consider cold calls as effective as reported 10 years ago. One reason might be the adverse public reaction to the overuse of telemarketing in all marketing areas. Some individual respondents reported other sources for sales leads including such activities as new home list calls, radio and television spots and holding networking breakfasts. • Question 3: Advertised Benefits Which benefits are emphasized in your custom and in-home marketing? (Ranked in order) 1. Free Consultation   75% Sixty percent of the total ranked this benefit either as first or second. 2. Staff experience and accreditation   65% Most responses ranked this benefit equal in value to free consultation. 3. Brand name association   60% Rated high, mostly first, second or third, as a benefit to stress for custom and in-home sales. 4. Samples, color swatches   60% These were considered consumer assistance necessities and a major sales aid benefit for all home fashion salespeople. 5. Free measuring   50% Only half the responses listed this benefit as an important incentive for in-home/custom sales. 6. Full color photos/books/folders   38% Another consumer information aid considered important for in-home selling. 7. In-store displays   19% Important assistance for walk-in traffic to make in-home decisions. 8. Fee with purchase rebate   12% Obviously, not too many consider this sales incentive as a good tool to spark in-home sales. Only one respondent listed sales discounts as an important factor for in-home sales. Many would argue, however, that just the reverse is true. • Question 4: Supplier Services Which supplier services were considered most helpful? (Ranked in order). 1. Sample book programs   87% Most of this majority ranked such consumer aids as the No. 1 or No. 2 service provided by suppliers. 2. Salesperson services   70% Almost half also rated this service as most important. 3. Brand name association   62% The importance of brand name was recognized by a majority of respondents. 4. Consumer information materials   50% Retailers rely on manufacturer's folders, brochures and related materials to help their customers in product selection. 5. Point-of-purchase displays   35% Seems like a low percentage for this necessary service. 6. Web site information   25% This percentage likely will increase in the near future as more retailers and suppliers communicate through the Internet on pricing, policies, ordering procedures and inventory status to increase efficiency. 7. Advertising slicks   18% A healthy percentage rely on these and other graphic aids from suppliers for advertising assistance. • Question 5: Customer Knowledge Where do customers learn most about window coverings and home fashions? (Ranked in order). 1. Home decorating magazines   88% 2. Word of mouth (friends, neighbors, etc.)   88% These top two rated equally, considerably higher than other information sources. All of the above are guesstimates, really. Other than the top three categories, all were rated fairly close as indicators of fashion awareness. It is interesting to see how retailers rate information sources they perceive to be helpful to consumers and prospects. • Question 6: Where Customers Buy If prospects use your ideas, then buy elsewhere, where do you think they buy? (Ranked in order) 3. In-home decorator/designers   62% 3. 4. Model homes/Home shows   56% 5. Cable TV home shows   56% 6. Manufacturer's ads   50% 7. TV programs/commercials/infomercials   44% 8. Newspaper "Living" sections   38% 9. Retailer newspaper/magazine ads   30% 10. In store photos/displays/vignettes   28% 1. Mass merchandisers   88% 2. Home building centers   70 3. Mail order warehouse catalogs and ads   56 4. Department store   50 5. Decorating retailer store   44 6. Specialty window covering store/department   44 7. Internet Web site   38 Naturally, an irritating subject for independent specialty stores and studios. The high ratings for the first three classifications indicate respondents concerns with low-price volume merchandisers. Again, these answers are guesses, probably by disappointed owners and salespeople whose suggestions are used, but not their products. • Question 7: Measuring Results How do you measure the results of your advertising and promotions? (Ranked in order) 1. Sales volume   100% Any advertiser will first check on sales increases, if any, during a time after an ad or promotion piece is used. 2. Number of leads generated   70% The same reason as above. Both were ranked either No. 1 or No. 2. 3. Ad coupons form print materials   38% An easy and reliable way to track customer awareness and response. 4. In-store traffic   31% 5. Telephone follow-up   12% 6. Outside research (agency or freelance)   12% 7. Media research figures   12% 8. Split ad comparisons   12% 9. Free offer follow-up   6% These rankings show that most retailers still prefer to "eyeball" their research. They check sales, traffic, leads and coupons rather than invest and rely on statistical figures from media and agency polls and studies. • Question 8: Where to Spend If you could double your ad budget, where would you spend it? (Ranked in order). 1. More direct mail offers   70% Direct mail, in all its varied concepts, has grown in popularity with retailers over the past 10 to 15 years. It offers numerous ways to target specific audiences. 2. Add a Web site home page   56% Retailers are very much aware of the impact and long-range potential for Internet marketing. 3. Increase shop-at-home ads   43% 4. Increase volume and size of newspaper ads   38% 5. Increase store-image displays   38% 6. Expand in-store displays   31% 7. Increase TV commercials   18% 8. Increase radio commercials   12% Interesting questions and answers. Retailers are always faced with difficult planning decisions. It's helpful to see what your peers would do with more funds to invest, especially in subjective, non-scientific areas such as advertising. • Question 9: Value of Your Program How do you rate the value of your overall ad program? Very important   50% Somewhat important   38 Rely on word-of-mouth   11 Don't know   less than 5% • Question 10: Value of Supplier's Program How do you rate the overall value of suppliers' brand-name ads? Important   70% Of some importance   25 Don't know   5 Our thanks to all who participated by mail, fax or e-mail. Your peers in our industry category thank you, too. Let's hope the answers and observations will assist you in your marketing planning. John J. Lichty is a consultant and senior editor for Draperies & Window Coverings magazine. He has more than 30 years experience in the planning and administration of various consumer, trade and retail advertising programs.