Creating a FAMILY Delivering engagement and relevance for the IKEA customer Driving sales and business intelligence for IKEA

According to Adobe’s Digital Index Report, marketers must bring in five shoppers to

equal the revenue of one repeat purchaser.

CONVERGENCE

CONTENT

CONTRADICTION

What We Do Not Want to Be

The IKEA FAMILY Program

Using the 3C’s to define:

What We Want to Be

Our Program

What we are…and what we are not

Why a loyalty program for IKEA?

How we brought FAMILY to life

What we are learning

Where we are going

If I only knew then what I know now

A bit about IKEA

The IKEA vision is to create a better everyday life for the many people.

Our business idea is to offer a wide range of well-designed, functional home furnishings at prices so low

that as many people as possible can afford them.

I K E A

Why we did what we did

We want our customer to know that we understand them and the way they live

their life at home.

IKEA is different and so is FAMILY

We are a loyalty program that is in complete lockstep with our brand.

Everything we do should demonstrate our

commitment to creating a better everyday life for the many.

If we cannot ladder a FAMILY component or benefit up to our vision and our brand, it is not part of the

program.

IKEA is different and so is FAMILY

• Monthly discounts on regular range products • Buy one get one free frozen yogurt to new members • Free coffee or hot tea 7 days a week • 30 extra minutes in Småland • Personalized web portal • Monthly discounts on restaurant meal and Foodmarket

items • Chance to win $100 IKEA gift card with every scan • Local market partnerships • Locally selected product offers • Extended price protection • Free mattress removal during promotional periods • “Donation per scan” programs • Exclusive events

IKEA is different and so is FAMILY

What we hoped to achieve

How we did it

We had to . We evaluated. We took the concept. But our market is different. So we rebuilt the mechanics. Met in the middle. Created the pro-forma. Refined. Recalculated. Re-evaluated. Rinsed and repeated. Prepared our stores. Prepared our database. Prepared our customers.

CONVERGENCE

Convergence at work

CONTENT

Our store is our richest content

Our store is our richest content

Digital content

Content Management

CONTRADICTION

For the many and for the 1

Bringing the 3 C’s together www.ikea-usa.com/FAMILY

What we are learning

Determining the omni-channel reward

• Email

• Mobile

• Social

• Site

Data Aggregation

• Determining the relationship between channel(s) and conversion

• Establishing channel weighting

Exploration and Analysis • Applying an overall

engagement score

Engagement Scoring

• Developing triggers based on common paths to conversion

Intent Triggers

0% 1% 2% 3% 4% 5% 6% 7% 8%

0% 10% 20% 30% 40% 50% 60% 70%

NotEngaged

Engaged

Shopping Rate

% of FAMILY

FAMILY Member Engagement

% of FAMILY Shopping Rate

Engagement = Shopping

• Depth, breadth and recency of channel interaction is determined

0%

2%

4%

6%

8%

10%

12%

14%

0%

10%

20%

30%

40%

50%

60%

70%

Mobile Social Catalog Portal Clickstream Email

Sho

pp

ing

Rat

e

% o

f FA

MIL

Y

Engagement by Channel

% of FAMILY Shopping Rate

Certain channels = Certain shopping rates

• The combination of the channel ‘weights’ yield an overall engagement score

0%

2%

4%

6%

8%

10%

12%

14%

0%

10%

20%

30%

40%

50%

60%

70%

Very High High Moderate Low Not Engaged

Sho

pp

ing

Rat

e

% o

f FA

MIL

Y

Engagement Score

% of FAMILY Shopping Rate

More channels = More shopping

Where we are going

Moving forward

Most things still remain to be done. A glorious future!

Ingvar Kamprad, A Testament of a Furniture Dealer 1976

DO: Get out in front of yourself. DO: Split your brain. DO: Be patient. DON’T: Introduce too much change.

Tak!