To remodel the existing programme so that it continued to give something back to loyal customers, but could also start delivering against critical business KPIs. Specifically, how could customer data be used to increase visit rate, average basket value and brand preference?
We knew we would require a different ‘currency’ from typical ‘quid-pro-quid’ programmes. We opted for visits as the currency; acknowledging the number of times customers came into store, not the amount they spent, and called it Pointless Loyalty™.
In creating the programme’s rewards, we wanted to tap our loyal customers’ deep passion for the brand; offering, in addition to discounts, ‘softer’ benefits like hearing news first, inspiration and seminar invitations. We defined the programme’s proposition as ‘More of IKEA for you’ and evoked this with the line ‘The more you visit, the more you get’.
Applying the knowledge derived from analysing the transactional data is a constant work in progress. Here are just a few examples of how the insights gained help us customize the brand for IKEA FAMILY members.
We’ve analysed over 2000 product promotions and created a product selection tool designed to help sales teams focus on products that are likely sell well.
We run a predictive model that identifies for each communication which channel is most likely to be preferred by the customer, and therefore likely to drive an additional visit.
With significant catchment area penetration, it has become possible to analyse member segments based on geography which, in turn, guides local marketing planning.
The IKEA FAMILY kiosk we developed not only carries out administrative tasks like new applications, profile updates and card replacements, but customers can also see which promotions are available in store.
We produce a suite of communications that deliver customized messages to each member. The last set had 3.8 million print-on-demand variables!
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