Priyanka Salot (The Sleep Company) on Customer Obsession & Brand Building
Priyanka Salot's journey from a decade at P&G to founding The Sleep Company is a masterclass in identifying a market gap, prioritizing product excellence, and building a brand with a laser focus on the customer.
In a candid conversation on the Founder Thesis podcast, Priyanka shared invaluable insights and actionable strategies that any aspiring entrepreneur can learn from. Her story isn't just about disrupting the Indian mattress market; it's about building a legacy brand with a global vision.
Check out the video of this conversation here: podm.in/thesleepcompany or read on to learn about the key decisions, challenges, and growth strategies that propelled The Sleep Company to a ?450Cr+ ARR business.
?? The Origin Story & Core Philosophy: Solving a Personal Pain Point, Building for the Long Term
The Sleep Company wasn't born out of a brainstorming session; it emerged from a personal struggle. Priyanka, like many new mothers, experienced severe sleep deprivation and back pain. This led her to explore the existing mattress market in India, and she was profoundly disappointed.
"I think one thing I faced was sleepless nights...I was having a lot of back pain issues. And hence I tried a lot of products...It just struck me that the quality of products that were available in India were far behind than anywhere else in the world."
This "aha" moment was coupled with a realization: the mattress industry was ripe for disruption. Existing products relied on outdated technology, and the customer experience was subpar. This sparked a core philosophy that would guide every decision: building a legacy brand focused on delivering genuine value and delighting the customer.
"We were not building a short term new age brand we were building. Very disruptive new age product. But we want to build a legacy brand."
This philosophy is particularly relevant for startup founders because it emphasizes long-term thinking over short-term gains. It's about building a sustainable business that solves a real problem and creates lasting customer loyalty. This isn't about chasing the latest trends; it's about building something of enduring value.
?? Early Stage Strategies & Pivots: Laying the Foundation for Success
The early stages of The Sleep Company were marked by several key decisions that set the stage for their rapid growth:
?? 1. Two Years of R&D: Prioritizing Product Excellence Instead of rushing to market with a "me-too" product, Priyanka and her team committed to two years of intensive research and development, collaborating with Dr. Tripathi, a former DRDO scientist. This was a bold move, especially for a bootstrapped startup.
"We didn't know if we will be able to crack it and I think after 2 years when we saw the product...it's been a fabulous journey. The easiest route actually was to take a product that existed in the market but if you want to build a long-term brand, you have to have a product which actually solves a consumer problem which is differentiated."
The outcome? The patented Smart Grid technology, a truly differentiated product that offered superior comfort and support compared to traditional foam mattresses. This commitment to product excellence became a cornerstone of their brand identity.
?? 2. Direct Customer Connection: Building Empathy and Gathering Feedback In the initial months, Priyanka and her co-founder personally handled customer service, talking to every single customer who purchased their product.
"In the first three months of our launch...me and Harshil we literally talked to every single consumer who bought our products...we went for their deliveries."
This wasn't just about troubleshooting; it was about building empathy, understanding customer needs, and gathering invaluable feedback. This direct connection informed early product iterations and helped validate their product-market fit. This practice continues in various forms.
?? 3. Strategic Investor Alignment: Finding the Right Partners Choosing the right investors was crucial. Fireside Ventures, with their deep expertise in consumer brands, was a perfect fit for their initial digital-first phase. Later, Premji Invest, with their experience in omnichannel retail, was brought on board to support their expansion into experience centers.
"We were clear that we wanted an investor...who understands consumer brands...[and] access to learnings [of] what other digital first brands are doing."
"Premji...comes with huge experience of investing in brands that are a lot let's say offline focused..."
This highlights the importance of finding investors who not only provide capital but also bring relevant expertise and networks to the table.
?? Navigating Major Challenges: The Omni-Channel Transition
One of the most significant challenges The Sleep Company faced was the transition to an omnichannel strategy. While their direct-to-consumer model had been successful, they recognized that many customers wanted to physically experience the product before buying.
"We realized consumers wanted to touch and feel the products...you're buying a mattress for typically 7 to 10 years..."
The challenge was to create an offline experience that was consistent with their brand values and provided a superior customer experience compared to traditional mattress retailers. They decided to go the harder out, to open their own experience centres.
"The customer experience of shopping in these stores is far far less...we decided to go the harder route. We decided we needed to open our own experience centers."
The solution involved:
This transition required significant investment and a shift in operational focus, but it ultimately proved successful, driving significant growth and enhancing the customer experience.
?? Scaling & Growth Strategies: Fueling the Rocketship
The Sleep Company's impressive growth trajectory can be attributed to several key strategies:
?? 1. Marketing Mix: Balancing Awareness and Performance Priyanka emphasized a data-driven approach to marketing, leveraging both YouTube (for awareness and education) and Google (for performance marketing).
"We spend bulk of our marketing spends are online and it's mainly 2 things...awareness and education...[and] performance marketing..."
This balanced approach ensured they were reaching potential customers at different stages of the buying journey.
?? 2. Brand Extension: Leveraging Existing Equity The launch of Ergo Smart, a line of office chairs featuring the same Smart Grid technology, was a strategic move to leverage their existing brand reputation and customer base.
"Consumers started to tell us that we love your products...can you make [chairs] comfortable...that's how...[we pivoted] to making people sleep and sit better.")
This demonstrates the power of listening to customer feedback and expanding into adjacent categories that align with the core brand promise. This brand extension has contributed 20% of their revenue.
?? 3. Operational Efficiency: In-House Manufacturing From day one, The Sleep Company has controlled its entire manufacturing process. This provides several advantages:
"From day zero. It's end to end in-house...you can control customer experience far far better."
This vertical integration is a key differentiator and contributes to a superior customer experience.
?? Future Vision & Industry Insights: Global Ambitions & the Sleep-Deprived World
Priyanka's vision for The Sleep Company extends far beyond India. She recognizes that sleep deprivation is a global problem, and the Smart Grid technology has the potential to address this need on a much larger scale.
"It's not just India which is sleep deprived. The whole world is sleep deprived...we want to become world's best comfort tech brand."
She also highlighted the ongoing shift from unorganized to branded players in the Indian mattress market, driven by increasing consumer awareness and a desire for higher-quality products. This trend presents a significant opportunity for continued growth. She foresees application of the SmartGRID technology expanding to other categories.
?? Building the Right Team and Culture: Empowering "Sleep Experts"
Priyanka's approach to team building is centered around empowering employees and fostering a customer-centric culture. The "Sleep Experts" in their experience centers are not just salespeople; they are educators and consultants, trained to understand customer needs and guide them to the right product. This approach reflects a broader commitment to providing exceptional customer service at every touchpoint. Leaders across the organisation make it a point to keep connecting with customers.
"Everybody in our team...even Harshil and I, we would make sure we talk to consumers every month...reading reviews...comments."
This demonstrates the value of creating a culture where every employee feels connected to the customer and empowered to contribute to the company's mission.
Key Learnings Summary ??
Priyanka Salot's journey with The Sleep Company is a testament to the power of vision, perseverance, and a relentless focus on the customer. Her insights offer valuable lessons for any entrepreneur seeking to build a lasting and impactful business.
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Founder @ AVTE Educational Institute | Education, Coaching | Transformation coach
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