To address this challenge, IKEA implemented a data capture strategy that combined transaction and customer information from over 20 sources, resulting in billions of data points. The company used analytics for segmentation, modeling, and a proprietary personalization engine to gain insights into customer behavior and preferences. Custom tech solutions were developed to support the IKEA Family program, including an in-store kiosk, digital wallet, member website, and many more. These solutions allowed IKEA to run over 100 targeted campaigns per year, each designed to engage customers and encourage participation in the loyalty program. The use of personalized communications, driven by the insights gained from the data, provided a sales lift compared to other communications.
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