IKEA targets MYR 85 million potential sales using geo-spatial analysis
Book your free geo-spatial analysis reportThe challenge
Looking to significantly increase visitation to their Batu Kawan store in Malaysia, IKEA turned to their customer data to identify who and where incremental sales revenue would come from.
Already expert in data driven marketing, they turned to Ikano Insight to provide additional data analysis and insight.
They wanted to know:
- Where the highest potential customer value lay in their market
- Which customers would respond best and spend with IKEA
- What messages would best motivate those customers
- And how to divide their in-store versus online focus
The solution – geo-spatial analysis
Ikano Insight used Area Prioritisation Engine combining multiple data sources to build comprehensive customer profiling of local DUN areas in Malaysia.
The analysis revealed 6 distinct demographic clusters that characterised each neighbourhood around the store, country-wide.
IKEA’s own data enabled an overlay of behavioural characteristics and current value of each area. With all data combined, the Area Prioritisation Engine produced a forecast of predicted customer volumes and potential spend values for every area.
The output was made available to IKEA through an interactive dashboard, which enables interrogation of every area, offering values, volumes, profiling and prioritisation rankings.
IKEA could now build a highly targeted marketing plan, focused on the most valuable locations first.
The outcome
IKEA discovered an enormous revenue opportunity, that otherwise would have remained unseen.
Personalised marketing and promotions could now be precisely targeted at the most valuable neighbourhoods, with the highest likelihood of conversion, with significant spend patterns:
- MYR 85 million in untapped potential revenue
- Found in 6 unique customer profile clusters
- With 77% of potential value, available from just 3 of those clusters
- Along with a defined comms messaging strategy based upon profiled product and channel preferences and behaviours
Next steps
With ongoing access to the interactive dashboard the IKEA team now has:
- Very precise objectives for targeted sales growth
- Ability to measure outcome versus targets for specific area locations
- Personalised, segmented marketing driven by customer product and channel preferences
- Ongoing ability to prioritise locations with highest potential return
Area Prioritisation Engine becomes a fundamental marketing tool to target customer value growth around every store, across multiple national markets.
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