IKEA is not only a store where customers go for a kitchen makeover. It’s also a great place to pop in for some Swedish meatballs or coffee with a friend while visiting the play area with the kids. The world’s largest furniture retailer offers something for every member of the family. That’s why it comes as no surprise that their loyalty program is called IKEA Family. The store’s rewards program is for everyone, and with over 150 million members, it’s one of the world’s largest customer clubs. IKEA’s vision is to create a better everyday life for the many and is committed to meeting the needs of its frequent shoppers by creating a great customer experience. Let’s see how this reflects in their loyalty program.
Membership Page — Become Part of the Club
IKEA Family is a loyalty program open to everyone and free to join whilst offering great benefits. The membership differs from having a regular IKEA account as it provides specific benefits and discounts to those who join. 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. Members receive a digital card as well as a physical card later on. Nevertheless, the benefits can be used immediately. The membership card can only be used in the country it was issued in so if members wish to take advantage of IKEA Family benefits in a different country, they need to register there as well with an alternative email address.
Enrollment — Bringing Customers’ Ideas to Life
Aspiring members only need to provide a few details about themselves and be over the age of 18 to receive exclusive offers, decor inspiration, and other special rewards from IKEA. If shoppers already have an IKEA account they can conveniently upgrade it to IKEA Family membership on the website.
Afterward there’s a two-factor authentication process: customers receive a code to their submitted phone number as well as a link via email to confirm their email address. In this initial email, IKEA states that they wish to check the customer’s account to see whether they are a new user or have been shopping at IKEA for many years now. This message might make it feel as though the company doesn’t really know who the customer is. In order to create a more pleasant experience for customers, IKEA could implement a best practice and use the data they already have to personalize the IKEA Family welcome email.
Enrollment in the loyalty program should be kept smooth and seamless. It shouldn’t give customers a hard time otherwise they might abandon the sign-up process. Companies can also offer a reward to provide even more motivation for customers to complete the process.
After joining IKEA Family, members can update their personal details in their account, including their preferred store and form of communication. Customers can also provide information about their homes, which helps IKEA offer more personalized recommendations and ideas for them. To encourage customers to share more, the company could even surprise members who complete their profile with a coupon or other benefit. In their account, members can also view receipts from past purchases, prepare shopping lists, and use the online room planner as well.
Program Structure — Rewarding Customer Loyalty
IKEA Family is a perks loyalty program that helps make the shopping experience enjoyable, promotes the brand, and at the same time drives customer acquisition. As the company’s aim is to reach, inspire and reward as many people as possible, IKEA not only rewards its members when they spend money but also offers experiential benefits when they visit a store. The company values when members become a part of the club and share information about themselves. So, in return, the company offers its members personalized rewards.
A perks-based loyalty program extends benefits and rewards to all members, regardless of how long they’ve been enrolled. The aim is to generate emotional attachment with the brand, which can lead to recurring purchases.
IKEA also uses its loyalty program to build a community, through which the company can communicate with shoppers directly and learn about their wants and needs. Therefore just by becoming a member, customers receive a number of exciting benefits and discounts as well as the opportunity to join inspirational workshops and tutorials.
Point Accrual — Only a Card Swipe Away
Instead of earning points, IKEA Family cardholders enjoy great offers, benefits, and sweepstake entries just by scanning their card. Running a perks program is easy since there is no liability associated with unspent points. Also in IKEA’s loyalty program, all members receive the same benefits no matter how much or how often they shop at IKEA. The company doesn’t segment its customer base. On one hand, the absence of tiers means that the company is free of long-term commitments however, on the other hand, this could potentially lead to frustration among more frequent buyers.
Offering tiers in a loyalty program encourages members to spend more and engage with the brand more regularly in order to receive the additional privileges and benefits that come with the higher ranks.
Rewards — A Place Where Customers Can Feel At Home
With an IKEA Family membership, customers have access to discounted member prices on selected home furnishing products, food products, and services, not to mention free tea or coffee from Monday to Friday with every visit. Additional benefits and rewards include:
- Regular members-only events: IKEA regularly hosts free home furnishing workshops, tutorials, and seasonal how-tos, so members can learn more about home furnishing tips and skills to improve their homes
- Price protection: if something they buy suddenly goes on sale within 90 days of purchase, members can bring their receipts back and be refunded the difference
- Monthly chances to win: These prize draws offer members the chance to win a $100 IKEA gift card every month. Plus, there’s a Spin to Win game at the IKEA planning studio where customers can win more prizes
- “Oops-assurance”: if something goes wrong while getting an item home or assembling it, IKEA will exchange it for free
- Birthday surprise: members receive a free meal coupon and a $15 gift card to use during their birthday month
- Extra playtime for the kids: members’ little ones get an extra 30 minutes in Småland, IKEA’s supervised child play area
- Inspirational newsletters: to keep customers up to date with news and changes
- Discounts in IKEA’s restaurants and cafes: also, when parents with babies under one year old buy a meal, they can request a bottle of baby food at the checkout.
The IKEA Family card offers several benefits for members even when they’re not spending money. For instance, the “Spin to Win” game adds a nice touch to their loyalty program and is a great way to engage customers outside of the buying cycle. It immediately gets customers’ attention and builds anticipation in a fun way.
Modern loyalty programs should engage customers with captivating touchpoints. This is where gamification elements come into play. For instance, a Prize Wheel that customers can spin to win rewards is more than just a great method to strengthen the bond between your brand and the members. It is also a fun way to incentivize enrollment in the loyalty program or reactivate lapsing customers. It’s ideal for mobile apps, websites, and in-store devices as well.
IKEA Family Digital Card — Smooth and Simple In-Store Shopping
IKEA Family also offers a touchless solution for using the IKEA Family card, a digital card that customers can access in multiple ways. Members either find their card in their account on IKEA’s website and use the QR Code at checkout. Or, they can add their IKEA Family card to their Apple Wallet or Google Pay as well. The digital IKEA Family card is also available in the IKEA Store mobile application or at the bottom of every email from IKEA Family. By scanning their digital card, members are able to enjoy special IKEA Family pricing on selected products. Every scan also helps the company learn more about their customers and, in turn, better personalize their offers and services.
At the same time, one drawback of IKEA’s loyalty program is that, at this time, IKEA Family coupons cannot be used online. Allowing customers to use their coupons online would create an even better omnichannel experience for the customers.
There is a growing awareness regarding the importance of omnichannel engagement. Companies are rightfully invested in developing an omnichannel strategy because it means they can reach their customers on all three major channels (online, mobile and offline), and that the experience itself is consistent.
Part of what makes the IKEA Family loyalty program great is that IKEA is constantly looking for ways to deepen the relationship with its customers and make a real difference. Understanding members’ needs and wishes gives insight into its customers and allows IKEA to constantly learn and tailor its offers. The company’s overall goal is to help members succeed in creating their dream home.
The furniture and home accessories giant is continuously working on improving its members’ experience and rewards, as a special way of saying thank you for their engagement and contributions. The company has excelled in offering a great mixture of transactional benefits and experiential rewards. IKEA Family members not only receive exclusive member discounts when they shop but are also provided access to special events and other surprises along the way. The gamification element, “Spin to Win”, implemented into their loyalty is a nice touch to engage customers outside of the buying cycle as well.
Also don’t forget to download Antavo’s Global Customer Loyalty Report, an in-depth report that showcases dozens of statistics as well as future industry trends to help you navigate the world of next-gen loyalty programs.
Barbara is a Loyalty Program Specialist at Antavo and a Certified Loyalty Marketing Professional - CLMP. She is also a writing expert with several years of experience in marketing and also in the information technology industry. In her free time she likes traveling the world, reading crime stories, and doing crossword puzzles.