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Deepening Customer Engagement with IKEA Retail

frog and IKEA Retail (Ingka Group) worked together to transform an underutilized customer club into a core part of its customer engagement strategy

ikea_living-room_header

IKEA_living-room_header

Creating a more rewarding experience  

How does it work? 

Collecting reward keys 

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IKEA_yellow grid

ikea_reward_keys_phone_mockup

IKEA_reward_keys_phone_mockup

Reward keys from IKEA Family, creating a rewarding experience for every member. 

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Video_Cover_Reward_keys_IKEA

A rewarding experience for every member 

normal

IKEA saw that their customer club had potential to engage more members, in more meaningful ways. They wanted a new rewards concept that would activate support and recruit members towards the highest form of engagement—their home furnishing project journeys.

Growing IKEA Family’s impact 

Challenge

frog collaborated with IKEA to research, design and create a global rewards framework operating as a consistent way of rewarding customers across every country, whilst offering local countries flexibility to adjust.

Transforming engagement-driven loyalty 

Solution

After trials in Sweden and Spain, reward keys from IKEA Family has launched in Portugal, Italy and Australia. Work continues with frog to boost deployment to 27 markets, ensuring customers globally can benefit from a more rewarding experience.

Substantial growth, increased engagement 

Outcomes

Project highlights

IKEA’s expansion of the reward keys program shows confidence in the potential transformation to drive its membership engagement strategy forward and deepen relationships with customers.

frog-icon-commercedigitalworld

frog-icon-CommerceDigitalWorld

Expanding to engage the “many people”

Creating a Loyalty Program to Deepen Customer Relationships and Drive Cross-sell

Deepening Engagement & Loyalty with Their Best Customers

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21_Case-Study-Mashreq-01

The Challenge
Over the course of the past 40 years, Mashreq has been a pace-setter in Middle East banking—growing to its current position as the largest bank in UAE and leading the sector with progressive initiatives like mobile banking. In 2008, the bank conducted a study to identify new growth vectors and discovered it could generate US $400MM within five years by increasing its cross-sell ratio from 1.5 to 3.0. To help abet its ambition, we were engaged by Mashreq to create a single currency loyalty program that would cut across all products and services offered by the bank and unlock the commercial potential associated with cross-sell.

21_case-study-mashreq-02

21_Case-Study-Mashreq-02

The Key Insight
Consumers tended to diversify among banks as a result of the structural barriers created by banks that eliminated incentives for consolidation. The loyalty program was defined around a central tenet of human loyalty: the greater the investment in a relationship, the greater the expected return. We transformed the business model behind bank customer loyalty, so that a customer adding a new Mashreq product would not only get attractive terms on the new product, but would immediately get improved the terms on all the products they already had. To help Mashreq establish the type of relationship that would compel Mass-Affluent consumers to join the bank, and then motivate them to buy multiple products, our team created a program that would break the walls between the bank’s divisions, while matching their requirement for share of wallet with an equally powerful share of heart.

21_case-study-mashreq-03_2

21_Case-Study-Mashreq-03_2

The Outcome
We created a loyalty program called Salaam where everything a customer did with the bank made everything that came before it better. The program had two complimentary elements, Salaam Mosaic and Salaam Rewards. Salaam Rewards is a customized rewards program that provides customers with benefits based on their own tastes, interests and passions. Salaam Mosaic transformed the business model behind bank customer loyalty, so that a customer adding a new Mashreq product would not only get attractive terms on the new product, but would immediately get improved the terms on all the products they already had. All powered by a first-of-its-kind algorithm allowing the terms of any product the bank offers to be reset in real time on the branch floor, based on instantaneous calculation of lifetime customer profitability. Mosaic powered the bank to overshoot its revenue targets by 35% when Mosaic went live. Additionally, the program has shown the ability to attract Mass-Affluent consumers and to increase profitability per customer by between 33-45%.

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21_Case-Study-Mashreq-04

“The program exceeded our expectations,revenue per customer increased by 28% in the first 90 days through cross-sell and up-sell.”

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21_Case-Study-JohnLewis-01

The Challenge
Founded in 1929, the John Lewis Partnership is a world-famous, UK-based retailing house that operates both the John Lewis department store chain and the grocery store chain Waitrose. As a partnership, it is wholly owned by the 86,000 employees who run its 400+ stores across the country.  Like the majority of established retailers, JLP faced the challenges of the rapidly transforming retail landscape. In particular, the increasing dominance of the online giants and the ever-increasing customer expectations that have come with it.
Struggling in particular to maintain engagement and loyalty among its best customers, whose continued patronage was core to the continued viability of the business, JLP engaged us to co-develop with them a new approach to maintaining differentiation in this new retail climate and reigniting its relationship with best customers.

The Key Insight
Working with JLP Ventures, the Partnership’s internal innovation team working across both the John Lewis and Waitrose businesses, we led an agile learn-do engagement to invent and design a portfolio of new service and experience offerings for best customers whilst helping the JLP Ventures team further develop their own capability by honing their skills as innovators and expanding their collective toolset.
Following a rapid immersion into their business and research with both customers and store partners, a key insight emerged that would become foundational to the direction we would set and the specific offerings we would develop: that despite personal, human interaction and service being a powerful driver of deeper, emotional engagement amongst customers—and something that the online retailers can’t replicate—JLP was typically not fully leveraging this defining and differentiating element of its Partnership model.

The Outcome
By the end of the sprint, we had co-developed a transformative new proposition leveraging the skills, expertise and passion of JLP’s partners to provide a new level of value for the business’ most important customers. From new in-store experiences designed to inspire to breakthrough new services delivering a whole new level of convenience, we together developed a diverse portfolio of new paid and complementary offerings to recapture the hearts, minds and wallets of best customers.
Following strong reception amongst JLP leadership, commercialisation of our work began with the pilot launch of Wine Tasting at Home by Waitrose, a new experiential offering in which customers can arrange for a sommelier-led wine tasting in the comfort of their own home with friends or family. Earlier this month, JLP launched a pilot for the centerpiece of our proposition, While You’re Away—a “last yard” home delivery service in partnership with Yale Locks in which groceries aren’t just delivered to your home, but put away in your refrigerator and cupboard, setting a new standard in convenience.

By the end of the sprint, we had co-developed a transformative new proposition leveraging the skills, expertise and passion of JLP’s partners to provide a new level of value for the business’ most important customers.

	Global		EN
	France		FR

	Global		EN
	France		FR

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