IKEA Thailand locates THB 1.8 billion untapped potential using Area Prioritisation Engine
The challenge
With ambitious objectives in Thailand, including a new store opening in 2025, but also increased competition, IKEA wanted to grow customer value as efficiently as possible.
Looking for greater data insights, they needed to accurately identify where to focus marketing actions to maximise return, without impact elsewhere.
To refine their customer targeting strategy, they needed to understand:
- Where potential customers could be found
- Which customers were currently purchasing from them
- Who had the potential to become customers but had not yet engaged
The solution – targeting the highest potential value
The IKEA team turned to Area Prioritisation Engine from Ikano Insight, which combines multiple data sources to build a comprehensive picture of different local areas.
We used advanced modelling techniques to identify the highest potential locations for customer acquisition and revenue growth. This approach included:
- Sourcing and integrating third party data to characterise each area across Thailand
- Deploying a prioritisation model to create neighbourhood associations and predict quantifiable area potential
- Developing an interactive dashboard to provide self-serve insights, enabling our client to refine their marketing strategy and re-focus efforts on the most promising locations
By overlaying the client’s existing customer interactions onto these data clusters, we were able to compare performance across different districts, form meaningful associations and predict untapped opportunities.
The outcome
Insights revealed a significant revenue opportunity, enabling the client to optimise their marketing investment for the greatest return:
- THB 1.8 billion in untapped potential revenue identified
- 1.5 million new potential ideal members surfaced
- 60% of potential market opportunity concentrated in just 10 key areas, with 96% of this potential found within two specific clusters
- Reduced the numbers of areas to target from 925 down to 10, streamlining efforts and ensuring resources were focused where they would deliver the highest impact
Next steps
By providing data-driven recommendations, we empowered IKEA to:
- Set clear objectives for revenue growth
- Accurately define their target audience
- Develop effective, localised marketing communications
- Measure success with precision, ensuring ongoing optimisation
With the power of the Area Prioritisation Engine, the client now has a clear roadmap for maximising their market reach and unlocking new customer opportunities in Thailand.
