Ikea will try to give its customers new reasons to spend money with a new rewards program for its Ikea Family program in the U.S.
The company is launching the rewards program redemption options for points to accompany Ikea Family’s list of benefits. Benefits include discounts on purchases, delivery savings and free meals at Ikea’s in-store restaurants.
Ikea ranks No. 7 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region. There, Digital Commerce 360 categorizes it as a Housewares & Home Furnishings retailer.
How Ikea’s new rewards program will work
Ikea said in a press release that with the introduction of rewards to Ikea Family, Ikea U.S. aims to provide customers with more value for their money.
The program’s members can, according to Ikea, earn one point per $1 spent, whether online or in-store. In addition, members can earn 10 points for sharing a gift registry or 50 points for other actions. Examples include creating an Ikea Family Profile or attending a planning appointment.
Ikea Family members can then redeem these points for rewards. Those rewards include free food at the Ikea Restaurant and Bistro starting at 65 points. In other cases, they may get $5 off a product purchase starting at 175 points. $10 off delivery is available starting at 350 points.
“Our Ikea Family members represent some of our most engaged customers nationwide and we wanted to provide enhanced value to them in every interaction they make with our brand,” said Nicole King, customer engagement and loyalty manager at Ikea U.S.
“This is an exciting next step in our journey to create benefits for our most loyal customers, on top of all the perks they already know and love,” she stated. “From special discounts to surprise offers and personalized rewards, this new offering is our way of saying thank you for being part of Ikea Family.”
Role of rewards in the Ikea Family program
Since launching in the U.S. in 2011, Ikea Family has grown to over 24 million members nationwide and continues to expand each year, according to the retailer.
Craig Kisler, CEO at customer support consultancy SupportNinja and a retail expert, says there are several ways in which Ikea’s loyalty program differs from others out there.
“Many loyalty programs chase repeat sales, but Ikea’s new rewards program maps loyalty across the entire customer journey,” Kisler said.
He noted that Ikea is already reducing friction by providing design inspiration on shoppers’ phones and scheduling delivery times.
“Where most programs focus on checkout, Ikea’s rewards extend across planning, discovery, dining, purchase, logistics and services, turning isolated transactions into a connected brand experience that keeps customers coming back long after the flat-pack is built,” he explained.
Gaining customer insights
Kisler said loyalty programs like Ikea’s unlock valuable longitudinal behavioral data. The first-party data may encompass how, why, when and where customers shop. It may also help explain what they prioritize and where they hesitate.
“These insights allow Ikea and its suppliers to innovate faster, forecast demand more accurately, optimize product placement, and develop offerings that better reflect evolving customer preferences,” Kisler stated.
He added that the program also gives the brand leverage in forming exclusive collaborations and negotiating more strategically with vendors.
Katie Cassidy is associate vice-president of consulting at the rewards-focused firm Kobie Marketing. She said Ikea will have some challenges as it looks to its business-to-business (B2B) customers.
“While the added value is clear for consumers, the connection to Ikea’s Business Network (its loyalty program for businesses) is murky,” she said. “It’s unclear whether business members earn points or just receive Family offers — creating friction in an already crowded loyalty landscape.”
Cassidy noted that for both consumers and business buyers, loyalty programs are becoming more critical. That is happening as they converge with customer relationship management and customer experience.
“The opportunity for Ikea (and any brand) is to earn a spot in the customer’s ‘inner circle’ by delivering value that feels personalized, frequent, and worth engaging with,” Cassidy said. “Brands that focus on relevance and relationships will rise above the noise.”
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