Latest / The Marketing Funnel Podcast with Fexingo: Awareness, Interest, Decision, and Action Stages / How IKEA Family Builds a Loyalty Funnel Beyond Furniture
Transcript
- Lucas: So we're doing something a little different for the milestone episode. Instead of a flashy tech brand or a DTC disruptor, we're going to talk about furniture. Specifically, IKEA. Luna: And not just the Billy bookcase. We're talking about their loyalty program, IKEA Family. Lucas: Exactly. And the reason I wanted to dig into this is that loyalty programs are usually treated as a retention tool. Something you bolt on at the end of the funnel. But IKEA Family runs through the entire AIDA model — awareness, interest, decision, action. It's a full-funnel engine disguised as a points card. Luna: So how do they pull that off? Because when I think of IKEA, I think of mazes and meatballs, not sophisticated marketing. Lucas: Exactly. And that's the genius. The meatballs and the mazes are part of it. But the loyalty program itself has over 80 million members worldwide. And it's not just about getting a discount at the checkout. It's engineered to get people into the store, keep them there longer, and bring them back again. Luna: So let's break it down stage by stage. Awareness first. How does IKEA Family generate awareness? Lucas: It starts with the brand itself, obviously. IKEA has massive awareness already. But IKEA Family specifically gets in front of people through their content engine. They publish room guides, design inspiration, even home tours on their site and social channels. And a lot of that content is gated behind a simple registration. Luna: So you give them your email to see a cute bedroom setup? Lucas: Pretty much. But here's the clever part — they align that content with life moments. First apartment, new baby, home office. And those moments map directly to their product categories. So the awareness is not just 'we sell furniture.' It's 'we solve your specific problem right now.' Luna: Right. They're segmenting by life stage before you even step foot in a store. Lucas: And they push that through digital ads, social, even their catalog. And once you're aware, the interest stage kicks in. Lucas: Interest is where IKEA Family really shines. The program gives members access to exclusive prices, just for them. But it's not just a static discount. They use purchase history and browsing data to send personalized offers. So if you've been looking at desks, you start seeing offers on desks and accessories. Luna: So they're using data to create relevance. That's classic interest building. Lucas: And they sweeten it with perks that feel like a family club, not a sales channel. For example, free coffee or tea every time you visit the store. And here's a fun stat — over 30 million cups of coffee are served to IKEA Family members every year. That builds a habit. You go for the coffee, you stay for the showroom. Luna: Coffee as a loss leader. That's a classic funnel move. Lucas: Now the decision stage. This is where IKEA Family gets really smart. They use the app to offer room planning tools and augmented reality. You can scan your living room and see a sofa in it before you buy. And members get access to these tools first. Luna: That lowers the barrier to committing to a big purchase. Lucas: Huge. And they also offer financing options, zero interest, that are exclusive to members. So when you're on the fence about a thousand-dollar couch, they're removing the friction around the price. Luna: And then the action stage. Is that just the checkout? Lucas: Partially. But IKEA Family also drives action after the sale. They have a 'family friendly' program that includes free workshops, kids events, even a play area. So the action isn't just a one-time transaction. It's a recurring engagement. Luna: So they're turning the store into a destination, not just a furniture warehouse. Lucas: Exactly. And that's why IKEA Family is a full-funnel play. They're building awareness with life-stage content, interest with personalized perks, decision with planning tools, and action with repeat visits and community events. It's AIDA in action, but with a Swedish accent. Luna: And it works. IKEA Family members spend about twice as much per visit as non-members. I saw that stat somewhere. Lucas: That's right. And the program has a huge share of total sales. So it's not just a nice to have; it's a core revenue driver. Luna: So what's the takeaway for other marketers? I mean, not everyone has a furniture empire behind them. Lucas: The takeaway is that loyalty isn't a stage — it's a strategy that should permeate the entire funnel. You can use data to personalize each stage, just like IKEA does. And you can create low-cost, high-value perks that build emotional connection, not just transactions. Luna: Like coffee and meatballs. Lucas: Exactly. But for your brand, it might be a free trial, a helpful guide, or a community event. The idea is the same. Lucas: And I think that's a good place to wrap up the main discussion. But before we go, I want to say something genuine. A lot of what we do here is possible because of a small group of listeners who support the show through buy me a coffee dot com slash fexingo. It's that simple. No ads, no sponsors, just people who find value in these conversations and want to keep them going. Luna: Yeah, it's a nice way to keep the podcast independent. And honestly, every little bit helps. Lucas: So if that's something you'd want to do, you know where to find it. And now, back to the funnel. We've talked about how IKEA uses their loyalty program across AIDA. But there's one more layer I find really interesting — how they measure success. Luna: Is it just member spend, or is there more to it? Lucas: They track a bunch of metrics, but the key one is 'member share of wallet.' That's how much of a customer's total furniture spend goes to IKEA. And they use that to guide everything from product placement to email campaigns. Luna: So they're not just looking at conversion rate. They're looking at long-term value. Lucas: Exactly. And that's the real lesson. The funnel isn't just about moving people from awareness to action. It's about creating a cycle where action leads back to awareness and interest. IKEA Family does that by making every visit feel like a new opportunity to discover something. Luna: So it's a flywheel more than a funnel. Lucas: That's a better way to put it. And I think that's something any business can learn from. Don't just build a funnel. Build a loop that keeps people coming back with new reasons to engage. Luna: And maybe a free cookie. Lucas: That never hurts. Thanks for listening, and we'll catch you next time.