Ikea multichannel driving customer loyalty

Ikea multichannel driving customer loyalty
Tags: Loyalty Programs, Marketing, Multichannel Retailing, Online Retailing, Retail - General, Specialty Stores
February 3, 2009

Retail Bulletin: The online business of Ikea was developed as a way of generating greater loyalty among the customer base as it is this that ultimately delivers greater sales and profitability.

This was the view of Adri Kraa, head of Ikea Shop Online, expressed at the Retail Bulletin Summit 2009 when he suggested that only five percent more retention through loyal customers could deliver as much as 60 percent more profits.

Through a desire to give customers greater "empowerment" and convenience the decision was taken to launch the Ikea online store. "We saw the biggest benefit of multi-channel as the loyalty effect, which we believed was more important than increasing sales," says Kraa.

Click to continue