Marketplace Challenge In the last 12 months, the Australian retail industry has been weathering the ‘perfect storm.’ Consumers have tightened their belts in response to uncertainty in the global economy, and household savings have increased to 10.2% - the highest in 20 years. The message to traditional bricks ‘n’ mortar retailers has been loud and clear - evolve or die. With this in mind, IKEA Australia set about launching a digitally driven customer loyalty program called IKEA FAMILY, to shore-up customer loyalty, capture a greater share of wallet and get people into the store more often. Execution • We created an IKEA FAMILY website dedicated to the program. It gave members access to a whole suite of exclusive benefits, and extended the IKEA world beyond its actual stores. • Signing up was simple, quick and intuitive. By entering personal info, members could enjoy an experience tailored to their interests and needs. • When members signed in, the site allowed them to see the latest FAMILY offers; be inspired by fresh home ideas; listen, share ideas and converse with other members via FAMILY facebook; and participate with the family via FAMILY events. • Our web design was driven by our information strategy,designed to progressively profile members so we could be relevant without being intrusive. Results Over the past 12 months we’ve converted 55% of all traffic to our site signing up more than 145,000 members; this equates to 29% of our member base. Repeat visits to our site are at 57% showing our members are engaged and coming back for more inspiration and their average time on site is 3.57 minutes. Our monthly-targeted eDM open rate average is 59.5% with 19.4% clicking through to find out more. And on average 29.4% of members who receive the e-newsletter then transact in the following six-week period, demonstrating the impact our communications are having on member behaviour.
