A Sleeping Giant
Unsurprisingly, sleep plays an essential role in your health, happiness, memory, health, and even career. So getting in enough hours of shut-eye should pay off well, right? Well, in just a single year, Nectar Sleep became one of the world's fastest-growing e-commerce company with $55 million in revenue and, at the time, a $150 million run rate. Now, the company has even bigger prospects: anticipating $300 million in revenue by end of year.
The competitive landscape is certainly saturated, including the likes of Purple, Casper, Leesa, and Tuft & Needle, so how exactly did a mattress company attain such unprecedented success in a short amount of time? I caught up with co-founder Craig Schmeizer to find out why and what their focuses were:
1. Customer Satisfaction
"The customer is always right," is a phrase you'll often hear from salespeople and businesses alike. But Nectar Sleep is one of the few companies that lives and breathes this motto.
Nectar is hyper-focused on providing a high-quality product that its customers will love and enjoy or their money back guaranteed. In fact, the company gives shoppers a never-ending warranty 365-night risk-free trial - that's a yearlong trial period, folks! Few companies show as much confidence in their product as Nectar does.
"We know our customers are value shoppers," said Schmeizer. "Nectar was developed not only to deliver a fantastic product at the highest value for the price but also to offer a high level of customer service."
2. The Purchase Experience
Crafting an ideal shopping experience is one area where brick-and-mortar stores typically prevail over e-commerce companies. However, Nectar has added a layer of genuine human touch to their online shopping experience, with their specialists and customer support employees effectively engaging their customers. Customers, as a result, are provided with proactive peace of mind on the purchase decision they're about to make (though the one-year trial certainly helps).
Schmeizer also shared that they recently launched an ad campaign highlighting their user testimonials, which speak for the comfort and quality of Nectar.
3. Big Data for Marketing
Big data helps drive Nectar marketing campaigns. It aids their concentrated approached to best understand their customers' shopping habits, motivations, and behaviors. This strategy has helped the e-commerce business maintain an excellent ROI with actionable insights that rake in millions of dollars in revenue.
4. Fulfilling a Niche
It might be difficult to believe that a mattress company somehow fills an unmet need in the market. However, Nectar carved out a solution. They recently launched DreamCloud, which is the only 15-inch direct-to-consumer hybrid mattress that costs $2,000 less than competitors. This mattress shows their audience that luxuries can be affordable and that you don't need to spend an excessive amount of money for a high-quality product.
"DreamCloud is redefining the luxury industry with a product that is affordable for customers within the broader marketplace," said Schmeizer. "We are excited to see this brand grow at the trajectory that Nectar had, as well."
So what's the takeaway secret? Stick to core values while being laser-focused on delivering a relevant, consumer strategy to the market. Oh, and get some more rest -- it can never hurt.