How does IKEA promote customer loyalty? (2023)

How does IKEA promote customer loyalty?

By inviting customers to respond to products or services, make suggestions, and interact directly with a company outside of the traditional format, user-generated content promotes customer engagement. The IKEA Effect can also build customer loyalty right from the start.

The in-store IKEA experience is memorable, and likely the most effective part of its customer journey. It also offers an example of how enveloping customers in a vivid experience of your store (and feeding them, too) will keep them coming back for more.

IKEA, the world's largest furniture retailer, use SmartSurvey software to get instant feedback from consumers to improve long-term customer satisfaction.

Before registering as members, shoppers can view the benefits of the loyalty program on the company's website and the many rewards that IKEA has in store for them. Signing up is easy: customers can either enroll at an IKEA store location on an IKEA Family digital screen, or on IKEA's website.

IKEA Family members now save 5% on eligible purchases every time you shop in-store! Plus get special offers, free in-store perks, price protection and more. It's free to join and you'll be saving in no time! Already a member?

Sponsorship and Influencers. IKEA-sponsored comedic series Easy to Assemble. Its innovative content marketing was way different from a furniture product demo. Incorporating sponsored digital marketing campaigns and social media influencers have boosted the Ikea marketing strategy.

Ikea's value proposition also plays a key role in its success. Ikea's business plan is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”

IKEA is successful for many reasons, but mainly for reducing operating costs, designing original and inexpensive furniture, and executing the upsell. IKEA customers are also familiar with the stores' maze-like construction.

The IKEA effect, named after everyone's favorite Swedish furniture giant, describes how people tend to value an object more if they make (or assemble) it themselves. More broadly, the IKEA effect speaks to how we tend to like things more if we've expended effort to create them.

Quality products, affordable prices and a do-it-yourself assembly attitude are big reasons for IKEA's success. Plus, it doesn't hurt that the company's marketing strategy is second to none.

How does IKEA achieve competitive advantage?

Offering the lowest prices.

Cost effectiveness is one of the solid bases of IKEA competitive advantage. The global furniture retailer is able to offer low prices thanks to a combination of economies of scale and technological integration into various business processes.

Ikea furniture is shipped and sold in flat-packs, which makes transporting it cheaper, and customers put it together themselves (or pay for someone to do it for them), keeping labor costs down. And the trademark simple style of the furniture Ikea sells is not just because it's a Scandinavian aesthetic.

IKEA Family is the IKEA loyalty club with more than 110 million members worldwide. IKEA Family is open to everyone, and it's free to join with no membership fees.

Everyone's invited. Get all the wahooooos, benefits, rewards and more to bring your ideas to life. Whether you're a newlywed or newly single, a pet parent or a family of 1 or 100, this is the club for everyone. Discover the benefits of being part of IKEA Family.

Most of the consumers prefer to visit IKEA because of the cost advantage that IKEA advocates to have compared with other furniture retailers. We can learn that no matter what business strategy used by company, the best strategy is to have products that have good quality, affordable price and also cost-advantage.

IKEA is also able to cut costs and keep prices low because of the way that it sells its products. In 1956, IKEA founder Ingvar Kamprad introduced "flat packing," the method now synonymous with IKEA that cuts costs by letting consumers purchase their furniture in pieces and assemble it themselves.

IKEA U.S. introduces new IKEA Family benefits including saving 5% in-store on eligible purchases¹ . Every Visit. Every Day. New and existing IKEA Family members will also receive special delivery pricing² , in addition to access to special product offers, 90-day price protection, and more.

There is no specific IKEA student discount available year-round but it often has student-specific promotions, especially around the start of term when students are buying things for university.

We're happy to announce a new way for you to save even more on affordable furniture and home furnishings. IKEA Family members now save 5% on eligible purchases every time you shop in-store! Plus get special offers, free in-store perks, price protection and more. It's free to join and you'll be saving in no time!

The major source of value in IKEA operations relates to cost benefits. Specifically, by locating the massive chunk of its manufacturing units in Eastern Europe and China, the company saves on the cost of human resources to a significant extent.

How do you bring value to customers?

Over the years, Ikea products have been criticized for their poor quality and shoddy craftsmanship, which have resulted in allergic reactions, malfunctions, and in some cases, even tragic injuries. All told, it's enough to make even the most avid Ikea shopper think twice before buying certain products at the store.

Three things that most people associate with the iconic Swedish retailer: sleek, modern furniture that requires a bit of DIY, having a branded restaurant on location, and the unique customer journey in IKEA that consists of a winding store layout that takes you through a visual tour.