Question

What can IKEA do to maximize its lifetime value of customers

Answer 1

Ans) Lifetime value of customer refers to the maximum amount of profit that can be made per customer over a time. Following are some of the ways in which IKEA can maximise its lifetime value of a customer ÷

• Providing loyalty points- providing loyalty points to the customer on each purchase with option of redeeming it when a certain level is reached will keep customers engaged for long in buying the products. And they will prefer the next purchase from your store as they will have a benefit of redeeming the points and availing the discount.
• Improve onboarding process- it will help in engaging the customer with the product and can at the same time leave a positive impact for the product and company on the customer. This is though beneficial for all types of customers but it particularly plays a great role in influencing new customers.
• Providing best customer service and complaint redressal- customer service plays an important part in keeping the trust of customers for a long time. Also quick complaint redressal helps in strengthening the trust of the customer building a long term relationship.
• IKEA should be present on as many communication channels as possible to catch more public attention.
• Enhancing the purchasing experience of the customer by providing a complimentary gift or a thank you message on registered number.