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A case study of SMS marketing campaign – IKEA Mobile Loyalty Program

20 September 2009 8 Comments

ikea_mobile_loyalty_marketing

Introduction

IKEA is one of the largest home furnishings retailers worldwide, with more than 275 stores in 36 countries; they launched a mobile loyalty program to build a database of consumers interested in receiving discounts from the home furnishings retailer in 2008.

Marketing Objective

Engage loyal IKEA customers with mobile coupons redeemable at stores.

Mobile Marketing strategy

The calls-to-action for the mobile loyalty program are posted online and promoted via email campaigns. Consumers text IKEA1 to short code 30364 (SMS). Texters get a message back letting them know that they will be receiving at least one IKEA message per week with deals, games and alerts. Surely they can opt out by text the word STOP to the short code 30364. After opting-in, consumers receive their first coupon to scan at IKEA’s mobile kiosk. The kiosks print a physical coupon.

Results

A mobile coupon allows IKEA to create and build mobile subscriber lists for targeted marketing initiatives. Most mobile users can direct email to their mobile device and double opt-ins ensure customers want to receive the updates, news, promotions of IKEA. IKEA rewards loyal customers with coupons and the same time which help building up a mobile loyalty program subscriber list. On the other hand, such mobile loyal marketing program contributed to the sales with an average monthly growth rate of 10%.

Best practice tips for a Mobile SMS campaign

  • Make sure you have very clear campaign objectives.
  • Market the campaign effectively.
  • Integrate the campaign with your website and other media.
  • Follow-up with people who texted in and recruit them to join your mobile campaign.
  • Write text messages with concise and effective wording.
  • Solicit text messages from already established supporters, such as an email list.

Below video is about the IKEA mobile loyalty program.

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8 Comments »

  • Ben Waugh said:

    Well said

    # 20 September 2009 at 5:54 pm
  • Tweets that mention IKEA Mobile Loyalty Program - SMS Marketing Campaign | kmdesign -- Topsy.com said:

    [...] This post was mentioned on Twitter by Susan Jarema. Susan Jarema said: RT @webdesignjoy A case study of SMS marketing campaign ? IKEA Mobile Loyalty Program http://bit.ly/5MNXJ #SMS [...]

    # 20 September 2009 at 10:27 pm
  • John said:

    Very nice site!

    # 21 September 2009 at 4:53 am
  • kmdesign (author) said:

    thank you.

    # 21 September 2009 at 1:44 pm
  • Chris said:

    Great case study.Any idea what kind of software, script to use?thank you

    # 25 September 2009 at 8:41 pm
  • Roberto said:

    cool blog

    # 4 October 2009 at 4:07 pm
  • dilandinga said:

    I bookmarked this link. Thank you for good job!

    # 4 October 2009 at 8:19 pm
  • Nawen said:

    Very cute :-) ))),

    # 13 October 2009 at 11:30 pm

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