IKEA RFM Analysis

IKEA RFM Analysis

The biggest benefit in order to properly target marketing campaigns is detailed knowledge of customers – and data from loyalty systems are in the best possible source. For this reason, we segmented members of the IKEA FAMILY loyalty club for their regional headquarters using RFM analysis, which classifies members based on three dimensions: Recency (time elapsed since the last interaction), Frequency (customer interactions in the entire history) and Monetary, which is the total value of all purchases.

We enjoyed it because we could utilize our extensive experience with e-mailing and data analysis. The outcome was a customer segmentation, which we transformed into 5 basic groups (with detailed break-up into sub-segments), including recommendations on how to work with each individual group. We hope that the data will help IKEA communicate with their club members and streamline their outreach.