The Challenge

Porcelanosa is a luxury home furnishings company, specializing in tile, kitchen, bath, and hardwood products sold directly to consumers. Once per year, the company holds a successful company-wide 40% off sale in its showrooms, but management had begun to question the ROI associated with conducting the annual sale.

Management needed to:

Quantify awareness of the annual sale among customers and prospects

Determine how customers learned about the annual sale

Develop customer and prospect profiles in terms of brand and category usage behaviors

Identify the specific product lines customers are looking to purchase and the key drivers of those purchases

Determine if the sale continues to attract new customers or if only existing customers participate

Understand the level of repeat purchases generated by the annual sale

The Findings

More than 9 of 10 shoppers indicated that the annual sale was important to their decision to shop at the showroom during the sale and one-half said they delayed their visit to the showroom to take advantage of the annual 40% off sale.

The research revealed that awareness of the annual sale was strong among customers and prospects, driven by Porcelanosa’s targeted mail-based advertising campaign conducted in the weeks prior to the sale.

The Solution

The Olinger Group implemented a program of showroom interviews across all locations among customers attending the annual sale, generating insights to help Porcelanosa determine the effectiveness of the annual sale strategy.

Additionally, Porcelanosa introduced an additional large sale during the July 4th holiday to capitalize on customer’s that wait for a sales promotion to purchase.

The Outcome

After digging deeper to get the customers’ point of view, the insights enabled Porcelanosa to objectively evaluate the effectiveness of the annual sale promotion and adjust the company’s messaging and promotional strategies to increase showroom traffic.

Additionally, Porcelanosa introduced an additional large sale during the July 4th holiday to capitalize on customers that wait for a sales promotion to purchase.

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