COVID-19: How PerDormire used data to reopen and get back on track

August 4, 2020
covid-19 perdormire

COVID-19 has undoubtedly caught a lot of retailers off guard. Lockdowns and store closures happened quickly, and many companies were left scrambling to generate sales, pivot their operations, and stay afloat.

But PerDormire, Italy’s leading beds and mattresses retailer, was not one of them. In fact, the company managed to stay two steps ahead of everyone — including the government — when it came to managing the COVID-19 crisis.

PerDormire’s secret weapon? A data-driven culture enhanced by location-based customer insights at scale.
By leveraging real-time foot traffic along with detailed customer insights, PerDormire was able to quickly shift its operations and effectively communicate with customers during the pandemic. Let’s take a closer look at how the company did it.

Quick decisions to save cash and keep employees safe amidst COVID-19

Even before the pandemic, PerDormire has been using Cloud4Wi’s solutions to collect and measure location-based customer data in real-time. PerDormire always has a handle on how much foot traffic its stores are getting at any given time, which means the company can make data-backed decisions quickly.

This came in handy during the early days of COVID-19. PerDormire was getting immense foot traffic on March 8 due to a strong marketing push, but the company started to notice a change by March 9 and 10.

During this period, PerDormire was able to quickly define some “negative” store clusters — i.e., locations where potential traffic dropped significantly. When these negative clusters accounted for 30% of the retailer’s flagship stores (which happened on March 10), PerDormire quickly determined that it would no longer be able to cover operating expenses.

Thus, the company decided to lock down the entire chain.

This decision was made two days before the government’s official lockdown, and the management team’s swift action allowed PerDormire to:

  • prevent cash burn at a critical point;
  • quickly get unemployment benefits for 200+ employees;
  • rapidly convert their factories into centers for manufacturing equipment for first responders and hospitals.

The financial savings that PerDormire gained from its quick and decisive response was equivalent to over 110% of the cost of their investment in Cloud4Wi — resulting in a massive ROI for the company.

Personalized communications that strengthened customer relationships

COVID-19 put PerDormire at a crossroads: the company could choose to go dark and not issue any form of communications to save costs or it could invest in communication to further cultivate customer relationships.

PerDormire chose the latter — and it was an easy decision at that.

The company had a tremendous amount of high-quality data on its customers from its national CRM which had information from over 120 stores across several regions.

PerDormire used that data wisely by crafting timely and relevant updates across three important segments:

  • prospects who just started their purchase;
  • shoppers who wanted more information on their products and quotes;
  • existing customers who were expecting deliveries.

Each of these groups received information tailored to their needs and shopping journeys, which helped strengthen their relationship with the brand.

What’s more, PerDormire stayed on top of its internal communications. The company was “always on,” and constantly informed employees of upcoming safety protocols. This, in turn, fostered staff loyalty and trust.

Aside from sending relevant updates both to customers and staff, PerDormire was also strategic with its communication style and tone. The brand embraced a fully emphatic approach when reaching out to customers and staff.

The company encouraged everyone to stay home, and this allowed PerDormire to lean on one of its core values: the importance of sleep and self-care. As such, PerDormire’s communications felt natural and authentic.

Data-backed decisions around store reopenings and marketing

PerDormire continued to rely on data as it prepared to ramp up its marketing efforts and reopen its stores after COVID-19 disruption.

The company crafted a flexible marketing plan that allowed the brand to turn media efforts on and off and postpone promotions when necessary. All of PerDormire’s decisions were based on what’s actually happening in the market.

Upon reopening its stores, the brand monitored foot traffic daily to understand and anticipate trends. It also measured engagement (i.e., when visitors’ dwell time exceeded 15 minutes), and this was enough to gain insights into how its stores were doing.

Using the above data, PerDormire was able to identify “positive” clusters — i.e., stores that were gaining higher levels of traffic. And when these positive clusters surpassed 70% of the brand’s flagship stores, PerDormire decided to go from passive to active marketing.

PerDormire’s reliance on data allowed the brand to determine the best time to actively market its business. The company turned on a TV campaign 5 days earlier than scheduled, which resulted in a 12% increase in foot traffic.

All in all, PerDormire was expecting an “L” graph performance, in which traffic and sales would remain flat. However, results started trending up quickly, and the brand was pleasantly surprised to see a “V” performance showing that PerDormire’s traffic and sales were back on track.

These results can be attributed to the quality of the company’s data and the fact that the brand makes decisions quickly. PerDormire’s management team believes that “it’s better to act quickly when you have 80% accuracy, rather than to wait for 100% when it may be too late to decide.”

This level of forward-thinking — combined with the right insights from Cloud4Wi — are what enabled PerDormire to effectively navigate the COVID-19 pandemic.

Discover how your company can leverage location-based customer insights. Request a demo of Cloud4Wi and see how you can start driving results in today’s new normal.

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