Inside Dormify’s 2024 back-to-school strategy

But Dormify’s secret to becoming one of the biggest players in campus furnishings goes beyond its Gen Z-friendly designs. The company is delving into more retail partnerships to make it more convenient for shoppers to get its furniture to their dorm rooms. It offers an array of price points to be able to reach shoppers in a variety of budgets. And it’s pushing out content on connected TV and viral Instagram videos to get into shoppers’ minds long before they’re buying.

This year, Dormify started a partnership with Office Depot in 200 locations. Online orders will be available for in-store or curbside pickup or free delivery over $35. And customers that shop in-person can also ship their Dormify orders to an Office Depot store near their campus. It also began partnering with college bookstores to help make more furniture sales happen on campus. Last year, it began selling select products through The Container Store.

“Our wholesale business is in a totally different place than it has been in the past,” co-founder Zuckerman told Modern Retail. “I would say it’s now a legitimate channel, whereas it hasn’t been in the past. And our main goal for our retail partnerships was to partner with a retailer that could offer our complementary service or value-add to our customers that Dormify, as a direct-to-consumer business, could not.”

So far this year, Dormify is seeing sales delayed slightly due to some holdups in financial aid notifications and room assignments that have shifted industry spending. Though Zuckerman wouldn’t share year-over-year comparisons, she said Dormify is highly optimistic about the year. Overall, Dormify wouldn’t share its revenue or how much the company has fundraised, but it’s seen interest from a number of investors and retail partners as the college spending segment grows. Back in 2018, it received a $3.45 million Series A investment from American Eagle Outfitters and an undisclosed amount from growth equity firm Clerisy in 2021.

Dormify’s focus on convenience to the customer comes at a time when inflation has squeezed family budgets. The National Retail Federation predicts that 2024 back-to-college spending will hit $86.6 billion, down from last year. The average spend per family will be about the same as last year, at around $1,360. But dorm room furnishings are the second-most expensive area of spending, at an average of $192 after electronics and technology. 

Value-minded shoppers

Deloitte Consulting’s annual Back to School survey this year found that low- and middle-income families are pulling back on spending compared to last year. Brian McCarthy, principal of retail strategy at Deloitte, said while the survey didn’t focus on college-aged parents, trends are largely the same among inflation-conscious households. Housing, health care, energy and food prices have all gone up, keeping spending in check. Still, Deloitte found that 85% of parents will splurge if their student is dead-set on a certain product.

“All those things are putting pressure on budgets for back-to-school,” McCarthy said. “But the flip side is that parents want to make their kids feel special, and make that back-to-school season more exciting.”

To that point, Zuckerman said Dormify is able to capture customers from across a range of price points. Low-ticket items that can spice up a room – like a throw pillow or textiles – may appeal to those who can’t afford something like its charging headboard at about $299. Comforters range from $79 to $169. It’s also attempting to sweeten the deal with freebies, like a charging cart valued at $129 with any order over $250. “We offer different price points so that someone with any budget can come in and pick and choose how they want to mix high low,” Zuckerman said.

Deloitte also found that convenience was a major driver of back-to-school decision making purposes, with 70% of shoppers saying they are looking for retailers in convenient locations with easy delivery options and hassle-free returns. To that end, Zuckerman said Dormify’s new retail partners can help students get their items without having to pack them up while flying across the country. “We’re starting to learn what Dormify’s role in last-mile delivery is for the customer, and how we can circumvent the mailroom,” she said.

Year-round marketing

From a marketing perspective, the company starts advertising its back-to-school collection as early as May 1 when students make decisions about where to go to school. Zuckerman likens the dorm room planning process to wedding planning. “There are customers of ours who have been dreaming about this since middle school. And there are others that are shopping when they get to campus,” she said.

This year’s plan includes a big connected TV push for top-of-funnel purposes, which Zuckerman said sees better returns than Google Ads. But the marketing calendar is a balancing act, given that 90% of Dormify’s sales happen from May to September.

“We have to allocate, and figure out where we’re going to really maximize every dollar that we’re putting into our paid channels,” Zuckerman said.

On social, Dormify is also getting on customers’ radars with organic and lower-cost initiates. So far this year, Dormify has reached a combined audience of 31.9 million people, and Zuckerman estimates about 40% of its customers come through organic social. Part of the reason is videos getting boosted by algorithms; at least eight videos on Instagram have received over 1 million views. But some of that translates into new customers, with 20% of Dormify’s customers coming from TikTok alone.

Zuckerman said Dormify also has about 1,600 brand ambassadors who promote its products on social. It has also created a free moving day checklist that helps with lead capture, a key way to engage with the customer before they intend to buy.

Looking ahead, Dormify is aiming to grow its lifetime value with customers by focusing on other related moments. The company is getting into more graduate celebrations, as well as other pre-college moments like early decisions, Commitment Day gifting and the “bed party” trend, where students deck out their bed in the gear of the college of choice. Zuckerman’s also focused on the post-purchase experience, like offering college-specific move-in day fact sheets for customers.

“Because we’ve been experts in this industry, for so long, we are focused on finding all these niche solutions for our customers,” she said.