What can IKEA do to maximize its lifetime value of customers

What can IKEA do to maximize its lifetime value of customers

Expert Solution

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.

Rahul Sunny answered 2 hours ago

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