3 minute read
Think about the last time you went mattress shopping. Was it via a referral program and a few clicks later, a mattress folded up in a box arrived at your front step? Or was it in a traditional brick-and-mortar store?
What was the latter experience like? Did you get the hard sales pitch about how a particular mattress would suddenly help you capture eight solid hours of sleep each night, and did that salesperson awkwardly hang around as you tested out a mattress? Even worse, if you actually bought a mattress but ended up hating it, how enjoyable was the return process?
This traditionally awful experience is precisely why online mattress companies like Leesa Sleep and Brooklyn Bedding have been so successful, so quickly. With products that exceed most customers’ quality expectations, and a distribution model (free shipping and returns, and 60+ day trial periods) that makes buying a mattress delightfully simple, customers are flocking to these companies and happily sharing the experience with their friends.
Leesa Sleep is just one of three online mattress companies included on Internet Retailer’s 2016 ranking of the 500 fastest growing online retailers. The company’s growth rate since launching in 2014: 20,257.1%.
The Story Our Data Tells Us About Online Mattress Brands & Word-of-Mouth
It’s clear that the online mattress industry is red hot, but what’s powering that incredible growth? Short answer: These companies are running some of the best referral programs online.
Part of it is consumers’ excitement about having an alternative to traditional brick-and-mortar mattress shopping. But, as Leesa Sleep co-founder and CEO David Wolfe mentions on this podcast, word-of-mouth has also played a key role in the industry’s rapid expansion.
To understand just how valuable organic word-of-mouth is for online mattress referral programs and bedding companies, we decided to analyze referral engagement and activity metrics for our online mattress and sleep customers. What’d we find? Here’s a sneak peak from our most recent report, Referral Marketing By the Numbers: Mattresses, Bedding, and Home Goods:
More tangibly, with an average referral incentive of $50, our online mattress and sleep customers spent, on average, just over $34,000 to generate more than $496,000 in new revenue. That’s a 14.5x ROI from a channel that’s relatively risk-free and easily scalable.
The Best Referral Program Metrics and KPIs
In our full report, we also explore the power of word-of-mouth in the context of consumer activity. Specifically, we answer this question: How willing are customers to promote online mattress and sleep brands?
To download the report, click on the button below and get your copy today!
And once you’ve had a chance to dive into the report (it’s a quick, two-page read), give us a shout! We’d love to chat about how Ambassador can help your company build a scalable referral program that delivers similar results.