IKEA locates MXN 931 million potential sales using geo-spatial analysis
Rapid revenue generation for new Guadalajara store
Book your free geo-spatial analysis reportWith a new store open in Guadalajara, Mexico, IKEA wanted to maximise revenue growth as soon as possible, to begin payback on their fantastic investment.
Recruiting new members to the IKEA Family loyalty programme is always key, and promoting the new store to those most likely to join and buy in the region.
The IKEA team wanted to take an incisive approach to where potential customers could be found. Building their data-led marketing strategy, they wanted to understand:
- Which customer demographics were most prominent across Guadalajara
- Where existing and potential customers were located by municipality
- Which areas were performing well—and which had untapped potential
The solution – geo-spatial analysis
Ikano Insight’s Area Prioritisation Engine combined multiple data sources to characterise each ‘Municipality’ area in Mexico.
This resulted in the identification of 5 distinct neighbourhood types, which could be characterised by neighbourhood associations, to predict potential sales revenues.
Every municipality could then be ranked by opportunity to IKEA, and prioritised for highly targeted marketing and promotions.
An interactive dashboard enables self-serve insights into every target area, to acquire new customers and unlock value.
This is designed to be refreshed on a quarterly basis to track and benchmark the impact of actions that have been taken.
The outcome
931
million pesos untapped revenue discovered
75
% in just 10 municipalities
99
% potential in 1 customer profile typeico
After overlaying IKEA interactions to form associations, compare performance and predict potential, the Area Prioritisation Engine identified:
- MXN 931 million in untapped, available potential (approx. £35 million)
- 75% (MXN 702million) of which can be found in just 10 municipalities (out of 2469 in total)
- 99% of this potential value actually existed within one cluster type
The impact
IKEA Mexico are now able to make better, data-driven decisions, to precisely target their marketing, and achieve fact-based sales forecasts.
They are able to follow a plan, with clear, recommended actions from APE:
- Specific objectives set for in-store vs online sales from each area
- Targeted focus on 3 key, highest priority areas (825k households)
- Understanding WHO they are communicating with, based on detailed demographic and behavioural profiles
- Knowing exactly WHAT product ranges to feature, based on buying behaviours and preferences
- Tracking preset KPIs to constantly measure their success
With Area Prioritisation Engine, the team now has a clear strategy to expand market presence and uncover new customer opportunities across Mexico.
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