RBTE 2016: How Ikea uses engaging content to boost brand loyalty

Furniture retailer Ikea recognises the power of a great loyalty card programme and is now using an interactive video to help increase customer interaction.

Magnus Holst, CRM manager at Ikea UK, explained the details behind the innovative and interactive content at RBTE 2016 on Wednesday.  

The video - which is currently centred on UK users - is used to introduce people to Ikea Family, the firm’s global loyalty programme which includes 85 million people. There are 5.4 million Ikea Family members in the UK, who account for about 30% of the firm’s sales.  

“It’s a solid base to work from,” said Holst, who explained how Ikea continues to expand in the UK by building new stores and a new web site, based around an updated platform. The loyalty card programme will support the growth.

“The first 90 days are crucial when someone joins a loyalty programme,” said Holst. “You must educate and inform members about all the benefits.”

The new video was important because research from the retailer found that 40% of members did not shop using their card again after the first seven weeks, and as many as 28% of members did use their card to shop at all.  

Ikea needed to improve its communication techniques and educate members about the potential benefits, said Holst. The retailer decided to create a video to send to UK members, which would take them back to the company's starting point in Älmhult, Sweden.  

Holst and his colleagues created an interactive film that drew on key methods, such as personalisation, speech recognition and motion tracking, to make the content as engaging as possible.

Control group research highlighted how the video produced a 12% uplift of UK members visiting the store after joining the programme, and 61% said they would visit the store more in the future.

“The initiative will now be rolled out globally – so it’s been a great success,” said Holst. "We’ve been smart so far. But we have to continue to help people realise the benefits of shopping with Ikea.”