The Role of Market Research in Direct-to-Consumer Furniture Brands

The furniture industry has evolved dramatically as DTC (direct-to-consumer) brands have advanced on the scene and begun to flourish. DTC brands utilize digital platforms to directly sell to their consumers and have ultimately redefined the traditional retail furniture models, enhancing the consumer experience with improved convenience, transparency, and often more value. However, with progress comes complications within the retail space, and one key element to success for DTC brands is being able to understand the needs of the consumer and anticipate these needs. This is where the importance of market research services becomes an important step in the overall success of DTC furniture brands.

Navigating a Competitive Landscape

In contrast to traditional furniture retailers that typically have showrooms and customer service representatives who sell directly face-to-face to consumers and build trust and loyalty by demonstration, direct-to-consumer furniture brands will now have the task of doing the opposite. Generally, consumers will make a high consideration purchase over the internet (10+ items) without having the benefit of seeing or touching the product themselves. For this reason, brands will have to be diligent in communicating value and difference as well as providing an overall positive customer experience.

DTC brands are able to take advantage of market research and really get to know their consumer and their needs, which helps brands to overcome these challenges. When utilizing market research, brands learn of the preferences, behaviors, and pain points of their buyers. In other words, market research will help brands answer big questions, such as:

• Who is our ideal customer, and what influences their purchase decisions?
• What styles, materials, and price points resonate with our consumer?
• How does the customer view our brand about our competitors?
• What hurdles do consumers face in the online buying experience, and how do we remove them?

The Power of Data-Driven Decisions

Market research is fundamentally about supporting DTC furniture brands with data-driven decisions. It can take a number of forms, including: 

• Customer Segmentation: Brands can gather together the demographics and behavior data to figure out who are the most relevant and valuable customer segments are and how to address the various segments with targeted marketing.
• Product Development: By doing the research, you will discover the customer needs and wants to understand design, usability, and sustainability. Brands will develop new offerings that fulfill actual customer needs.
• Message Optimization: Understanding the words and visuals that resonate with target audiences will help brands formulate and convey marketing messages that feel authentic and engaging.
• Channel Strategy: Investigation into where and how consumers shop online will lead to better applications of digital advertisements, social media, and influencer campaigns.

Best Practices for DTC Furniture Brands

To maximize the value of market research, DTC furniture brands should:

• Mixing Quantitative and Qualitative Methods: Use surveys and analytics to observe trends on a broad level, but for a deeper understanding, conduct interviews or use focus groups. Monitor the Competitive Landscape: Continually assess how other brands are positioning themselves and the things that resonate with consumers.
• Act on Findings: Research is only useful when it leads to actions. Use the insights to inform product design, branding and marketing plans, and customer service programs. 
• Keep Research Active: The market is shifting all the time. You should check in regularly to make sure your brand is not the one stuck in the 1970’s and your consumer is not moving ahead without you.

Where previously market research was considered a helpful resource in the fast-accelerating world of direct-to-consumer furniture, it has now become a necessity. When brands invest in research to understand their customers’ needs and the market they will be selling into, they can create products and experiences that resonate with actual customers, drive growth, and foster customer loyalty.

If you’re a brand looking for help with this, there are partners like Elevate who can help you with this bespoke best practice market/consumer research to bring structure to your ideas, unlock insights related to your prototype, and turn them into actionable strategies. Moving forward, in a crowded marketplace, those who listen and adjust their strategy will always win.