IKEA Model

I made a trip to IKEA with my family this past week and thought I would comment on the entire business model. To start, I feel everyone has something to learn from IKEA. Here are a few key points that can be and should be applied to your company:

1) Demonstration Sales Presentation - If you have ever been to an IKEA store you will know that the entire store is built as a full tour or live demonstration of their product offering. It's basically the Disney World for grown ups looking for home furnishings and accessories. This is a smart approach to sales. The customer gets to see the products and gets a clear picture of what they might look like in their home. The tour actually guides you with arrows to where they want you to go and what they want you to see which results in control of the customer on their part. By the time you're done the tour/demo you should have seen and now know what you want and added it to your cart. The demo/tour model is a phenomenal way to sell your product because it makes the product or service real to the potential buyer. Find a way to demo your product to your possible buyers in a way that allows them to compare it to how they will actually use the product or service. This will help control and improve your sales.

2) Fun - The entire experience is fun. It doesn't feel like shopping or a chore. It feels like you are at a massive theme park for home furnishings and accessories. The vibrant colors and entire layout makes it fun to walk through and look at. There are pictures on the walls about the history, latest products etc which makes the entire experience incredible. Making it fun will result in happy customers which will result in buyers which will result in income.

3) Catering to your Public - There is a HUGE elevator in the middle of the store to fit tons of people comfortably. There is an actual food court that is done beautifully to cater to hungry guests. The layout is perfect to easily maneuver around. There is a child center to leave the little kiddos to play to their hearts content and allow the parents to casually stroll not to mention the fun kid friendly pockets and sections all throughout in case the parents want to bring the tikes along. There are helpful staff spread all around. The checkout is a breeze. Need I say more? It's completely setup to take good care of their customers and to make them happy so they can enjoy their shopping experience.

4) Exchange - The prices are unreal. They are clearly providing a better value than one has to pay. I'm not by any means a cheap or bargain shopper but I can appreciate value and love the idea of geting a great value. IKEA has this pegged. The prices for the items and the overall experience is well below the actual value which makes their exchange with their customers through the roof. Figure out a way to provide a higher value to your clients than they pay for your product or service and you will always ensure long term survival for your company.

I am certain that there are more takeaways from IKEA than I have listed above but these were the basics that I wanted to make notes on. Go and see for yourself. It clearly had an impact on me which is obviously another benefit that will build their sales...... customer word of mouth. Kuddos to you IKEA

- Robert Cornish
CEO, Richter10.2 Media Group