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Ikea Cancels Its Catalog, Putting A Road Block On The Customer Journey

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Ikea printed catalogues are seen in this illustration photo taken in Poland on December 8, 2020. Ikea annouced that next year will be the last for publication of a printing catalogue after 70-year run. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
NurPhoto via Getty Images

As 2020 draws to a close, every retailer is ready to close the books on this most disruptive of years. Ikea is quite literally closing its books. It is ending the 70-year run of its iconic catalog. The Ikea catalog will be relegated to a museum, where it becomes a nostalgic reminder of days gone by.

On the face of it, Ikea’s decision makes complete sense, as fellow Forbes.com contributor Enrique Dans explains. It takes the company about a year to produce the typical 300-page catalog, which peaked at 200 million copies distributed through its stores and in the mail in 50 markets, 69 different versions and 32 languages.

Ending the catalog will save the company a ton of money and allow the company to funnel all resources into digital where it sees its future lies.

“The decision to say goodbye to the IKEA Catalogue goes hand-in-hand with the ongoing IKEA transformation to become more digital and accessible,” the company said in a statement. “Last year IKEA online retail sales increased by 45% worldwide,” adding that its website logged four-billion visits, while the company has been developing new apps to service its digital customers better.

After years of dragging its feet to become e-commerce enabled, the company is now jumping in head first into its digital future.

Dans applauds it. “IKEA’s decision will likely be copied by companies of all types in all sectors. Think of the savings that could be made, the useful features provided for users, and most importantly, the environmental benefits. It’s time to follow IKEA’s lead and embrace a paperless future,” he writes.

The practicality of the decision is without question, as the company recognized it was making a rational, rather than an emotional decision. But that’s the rub. Consumers make purchase decisions based primarily on emotions; reason takes a back seat.

Because the Ikea catalog is “beloved,” as the company acknowledges, it is breaking an emotional connection with its customers, a vital connection that it is unlikely to be able to replicate digitally.

Power of paper

Reams of data counter the digital-first, digital-only road that Ikea is taking. Good old-fashioned catalogs and direct mail marketing still have power to draw customers to a brand:

  • 59% of consumers enjoy getting mail from brands about new products (Epsilon) and 42% read or scan the direct mail they receive (Data & Marketing Association)
  • Response rates are high – 9% from house lists and 4.9% for prospect lists (Data & Marketing Association)
  • 60% of people who receive a catalog go to a company’s website after browsing a catalog (United States Postal Service)
  • Direct mail recipients purchased and spent 28% more than those who didn’t get a piece of direct mail (USPS)
  • 73% of Americans prefer being contacted via direct mail because they can engage with the material on their schedule and they keep advertising mail for on average 17 days (Mailmen), but an Ikea catalog probably hangs around much longer.
  • Direct mail is opened more than emails – 90% as compared with 20% to 30% of emails – (Data & Marketing Association) and recall is better – a brand is remembered by 75% of direct mail recipients versus 44% for digital ads (Marketing Profs)

The reason why paper in the form of a catalog or direct mail piece is more effective than digital or email advertising all comes down to human psychology and how the brain is wired, what is called neuroscience.

A white paper by MarketReach, entitled “Why Mail Cuts Through,” based on research by Neuro-Insight unravels the secrets. The act of physically holding and reading a piece of mail activates areas of the brain that encode long-term memories 49% more than email and 35% more than social-media advertising.

How emotionally engaging and personally relevant the advertising is also cements a brand in an individual’s memory. Mail was found to be 33% more engaging than email and 35% more engaging than social media advertising when the researchers measured electrical impulses in the brain to different stimuli using Steady State Topography (SST).

And when a person receives a mailed message from a brand, it reinforces digital and other advertising so that people pay more attention to all of it. Mail primes the pump so that memory encoding for social-media advertising is 44% higher after seeing mail first and it results in people spending 30% longer looking at a social-media ad.

Furnishing the brain’s ‘Brand Room’

Interestingly, the researchers describe the neural network of brand associations in our minds as a Brand Room.

“Brand communication can play one of two roles in relation to the Brand Room,” they write. “The first is to help furnish or decorate the room, by adding or changing associations. However, no matter how well decorated they are, Brand Rooms tend to sit in darkness most of the time. It’s only when something flicks a metaphorical light switch that the associations and sentiments within the room have any impact.”

Ikea’s catalog has held a treasured place in its customers’ Brand Room. By canceling its catalog, it has turned off the Ikea light switch in people’s brains.

“Mail can have a powerful affect on furnishing the Brand Room and switching on the light. Brain response shows that mail impacts strongly on long-term memory encoding and engagement. In this way, mail can also build brand equity,” they write, adding that further research shows mail, like an Ikea catalog, is put somewhere visible in the home as a reminder to act and 64% of consumers often take a mailed piece with them to act upon.

Forcing customers to follow Ikea’s preferred path to purchase

Direct-mail expert Matthew Whipple, vice president at Speedeon Data, can’t figure the rationale behind Ikea’s decision other than to speculate it is ignoring the “incrementality” of the catalog and how it reinforces and supports its digital and retail channels in the customer journey.

“People look at the efficiency of paid search, digital ads and Facebook retargeting versus the high direct-mail cost of acquisition and conclude direct mail doesn’t work and digital is really rocking,” he quips.

“But direct mail is really driving the entire funnel process. It is at the upper-end of the funnel and if it does nothing more than help you collect an email address so you can start retargeting when the customer is ready to engage, direct mail did its job,” he continues.

Whipple goes on to explain how this penny-wise, pound-foolish thinking led a company to cut catalog spending, only to leave the company’s sales flagging down the road.

“Just because people weren’t using the coupon in the book to place orders, the company decided its catalog was underperforming and ended it,” he shares. “Then year-after-year, the financials started to drop and nobody could figure out why. They completely overlooked the impact the catalog had across channels.”

People dream in analog, not digital

Planning and decorating a home is a highly tactile, sensual experience. In other words, it functions in an analog world. Ikea, which should know better, is trying to force its customers to do it digitally.

While digital may work at the transactional level and be convenient for the company, Ikea is forcing its customers to follow a path that is fundamentally incompatible with Ikea’s mission: To create a better everyday life for people.

Digital technology can help Ikea fulfill that mission, but the everyday life people live is in the real world, where touch, sound, scent, feelings and emotions rule.

Clearly many brands are following the same digital-first, digital-only path as Ikea, since the younger customers it targets are considered the first digital generation. But while Millennials are digital-natives, they are humans too, and there is now way to bypass that reality.

“Thirty-percent of Millennials said direct mail is more effective at getting them to take action compared to 24% for email,” Whipple says, citing a study by DMN. “This group may seem like a digital-first generation, but they appreciate and respond to direct mail marketing.”

In five or ten years, Ikea may be wondering why the lights aren’t shining so brightly in its stores or online. It will have no one to blame but itself.

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Unveiling the Future of Email Marketing: 4 Trends to Revolutionize Engagement

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Unveiling the Future of Email Marketing: 4 Trends to Revolutionize Engagement

In today’s fast-paced digital landscape, the efficacy of email marketing hinges not only on the delivery of messages but also on their ability to resonate with audiences and drive meaningful interactions. Gone are the days of generic blasts; instead, companies are increasingly turning to innovative strategies to captivate their subscribers. Here, we delve into four emerging trends poised to redefine the realm of email marketing, promising to elevate engagement and drive conversions.

1. User-Generated Content (UGC) Takes Center Stage

User-generated content (UGC) emerges as a potent tool in the arsenal of email marketers, facilitating authentic connections with audiences while amplifying brand visibility. From customer reviews to social media posts, UGC offers a dynamic and relatable portrayal of products and services, resonating with consumers in the era of “new sincerity.”

By harnessing UGC within newsletters, brands gain invaluable insights into consumer preferences and behaviors, fostering trust and credibility. Strategies such as incentivized contests or social media challenges empower users to contribute content willingly, fueling a steady stream of authentic engagement.

2. Augmented and Virtual Realities (AR/VR) Transform Experiences

Augmented reality (AR) and virtual reality (VR) technologies emerge as game-changers in the realm of email marketing, offering immersive experiences that captivate and compel audiences. While VR may require substantial investments and specialized equipment, AR presents a more accessible avenue for brands to showcase products and drive engagement.

From interactive product demonstrations to virtual try-on experiences, AR/VR initiatives promise to revolutionize email campaigns, offering users a glimpse into a digitally enhanced world. While technical constraints may limit current implementations, ongoing advancements herald a future where AR/VR seamlessly integrate into email communication, enriching brand experiences.

3. Omnichannel Integration Enhances Connectivity

The advent of omnichannel marketing heralds a new era of seamless connectivity, enabling brands to orchestrate cohesive experiences across diverse touchpoints. By unifying customer interactions across websites, offline stores, and email communications, businesses cultivate deeper insights and deliver personalized content tailored to individual preferences.

Omnichannel integration not only streamlines the customer journey but also fosters brand loyalty by offering consistent and personalized experiences. Whether browsing online, engaging in-store, or interacting via email, customers encounter a unified brand identity, enhancing engagement and driving conversions.

4. Hyper-Segmentation and Personalization Drive Relevance

In an age defined by personalized experiences, hyper-segmentation emerges as a cornerstone of effective email marketing strategies. By dissecting audiences into granular segments based on demographics, behaviors, and preferences, brands can deliver tailored content that resonates on a profound level.

Utilizing advanced email marketing platforms, businesses can leverage hyper-segmentation to craft personalized campaigns that speak directly to individual interests and needs. From dynamic product recommendations to targeted promotions, personalized emails foster a sense of relevance and exclusivity, driving engagement and fostering long-term customer relationships.

In conclusion, the future of email marketing lies in innovation and adaptation, with brands leveraging cutting-edge technologies and strategic approaches to engage audiences effectively. By embracing trends such as user-generated content, augmented reality, omnichannel integration, and hyper-segmentation, businesses can unlock new realms of engagement, driving meaningful interactions and fostering brand loyalty in an ever-evolving digital landscape.

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Top Email Marketing Strategies To Use For Q4

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As we approach the Q4 period, it’s never too early to start preparing for your Black Friday and Cyber Monday email marketing strategy. Once Black Friday week hits, our inboxes are filled with a hurricane of brands fighting for attention, each with the ‘biggest’ and the ‘best’ offers you won’t get anywhere else. 

To set your brand apart from the competition, it’s crucial to plan ahead. Over 60% of brands send out multiple emails over the course of the Black Friday/ Cyber Monday weekend, and it’s a perfect time to up your brand awareness ahead of the Christmas shopping season. 

If you’re not sure where to start with Q4 planning or need some last-minute tips to enhance your strategy, we’ve outlined some top email marketing strategies to incorporate into your plans!

1. Send Pre-Black Friday Emails

Sending pre-Black Friday emails is great for keeping your brand at the forefront of people’s minds ahead of the big day. Not only will a pre-Black Friday email let your audience know about your upcoming event, but it will also ensure that your audience is regularly checking in on your brand throughout the Q4 period.

Additionally, sending pre-Black Friday emails is beneficial for A/B testing. Sending out different formats of emails with minor tweaks, such as the CTAs or subject lines, can help you determine what your audience is more likely to engage with so you can then tailor your Black Friday strategy accordingly.

2. Run a Lead Gen

It might seem like a given, but ahead of Black Friday, it’s beneficial to give your email list a much-needed boost. A simple but effective way to do this is to run a lead-generation advertising campaign. For example, offering your audience the chance to win a prize in return for submitting details, such as their email address, is a quick and easy way to increase your list size. Similarly, refreshing your pop-up on-site with an irresistible offer will also contribute to gaining new profiles.

3. Offer Something Unexpected

Email marketers only have 3 seconds to capture the attention of their readers, which isn’t surprising due to the amount of emails the average person will receive daily. If an email isn’t driving you to click on it, it swiftly gets forgotten about and lost within their inbox. Over Black Friday, to avoid this happening, make sure you’re offering something unexpected, whether that’s a mystery discount or a gift with each purchase!

One of the worst things you can do over Black Friday is to overcomplicate your promotions. If you’re offering multiple promotions and codes, things can get a bit too hectic. To make it as simple as possible, consider running a standard “up to” percentage amount. If you want to include a code, it helps to have this auto-applied at checkout to avoid customers dropping off if they input it incorrectly. In the design of your email, make sure the promotion is clearly highlighted within the design so it can’t be missed, and also referenced in the body copy and subject lines too!

5. Create An Effective Design 

Creating an effective design is one thing, but how do you know what works? To improve your email campaigns, consider running an A/B test to pinpoint which elements of your design are improving the CTR and which are hindering it.

Highlighting metrics such as colour, font size, and CTAs can instantly impact whether people will click through or discard! If a consumer clicks on your email, you’ll have, on average, 11 seconds to keep their attention, so making sure your design stands out for the wave of other Black Friday content is key! Keep the design of your email reflective of your branding but with stand-out elements specifically for the shopping season.

6. Make Use Of CTAs

CTAs (call-to-action) are one of the most underrated parts of any email campaign, especially over the Black Friday period. They’re one of the driving forces behind making your email recipients turn into passive readers to customers. One key way to make your CTAs stand out is to make use of bright and bold colours that will attract and hold attention. Additionally, it’s important to think about the placement of your CTAs to increase your click-through rate, make sure the copy used is clear and concise (between two and five words) and use actionable language.

7. Focus On Subject Lines

Subject lines are make or break for every email campaign. Over Black Friday, consumers’ inboxes are cluttered with emails, so it’s important to stand out. It’s estimated that on Black Friday, 116.5 million emails from brands were sent out (more than any other day), and Black Friday sees the highest number of emails opened and clicked. To prevent your emails from being lost in the void, having a cracking subject line to stand out from competitors is everything.

The secret to a great subject line is to keep it short and snappy. On average, subject lines with 50 characters or less tend to get an average of 12% higher open rates and 75% higher click-through rates. Including emojis within subject lines has been seen to increase click-through-rates by as much as 28%!

Additionally, it helps to use language that will really pique your audience’s interest, stay away from any overused cliches and keep them as attention-grabbing as possible.

8. Prep for Cyber Monday

To plan an effective Black Friday, it’s crucial to prepare for Cyber events too. With Cyber following straight after, it’s easy to forget about it or not prioritise it as much as Black Friday, however, it’s still an extremely profitable day! To make the most of it, create dedicated campaigns and tailor your online sales messaging so that it focuses on driving urgency. 

9. Incorporate SMS into Your Strategy

Sometimes the importance of SMS can be overlooked because a lot of brands assume that text messages won’t fit in with their brand. However, it’s a no-brainer for reaching even more customers. On average, 82% of people engage with marketing content on their smartphones, so it’s something to definitely explore, especially over the busy shopping period.

To gain SMS sign-ups, you can effectively tie your SMS campaign in with your lead generation and ask for customers to fill out their phone number as well as their email address. That way, they’ll be opted into your send list. It can also be used to send reminders when sales have launched or when offers are coming to a close.

Despite having only 160 characters to work with, SMS campaigns are longer than recommended email subject lines, so it can be just as, if not more effective than email marketing campaigns.

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Mastering Email A/B Testing for Mobile Apps: The Ultimate Guide

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Welcome to the world of email A/B testing for mobile apps!

Here at Favoured, we’re all about delivering the best results for our clients, and that includes mastering the art of email marketing. In this guide, we’ll take you through the essentials of A/B testing your email campaigns to achieve maximum success for your mobile app.

What Is Email A/B Testing?

Email A/B testing, also known as split testing, is a method used to compare two or more variations of an email campaign to determine which one performs better. The goal is to identify the version that resonates most with your target audience, ultimately leading to higher open rates, click-through rates, and overall engagement.

In the context of mobile apps, email A/B testing can be particularly valuable, as it helps you fine-tune your marketing messages to drive user acquisition, engagement, and retention.

Benefits Of Email A/B Testing

There are numerous advantages to incorporating A/B testing into your email marketing strategy for mobile apps. Some of the key benefits include:

  • Improved open rates: By testing different subject lines, you can identify which ones capture your audience’s attention and entice them to open your emails.
  • Increased click-through rates: Experimenting with various email elements, such as CTAs and layout, can help you determine the most effective ways to encourage recipients to take action.
  • Enhanced engagement: A/B testing allows you to create more relevant and engaging content for your target audience, resulting in higher conversion rates and stronger user relationships.
  • Data-driven decision making: With A/B testing, you can make informed decisions based on actual user behaviour, rather than relying on assumptions or gut feelings.

Key Metrics To Track

When conducting email A/B tests, it’s essential to track specific metrics to gauge the success of your campaigns. Some of the most critical metrics to monitor include:

  • Open rate: The percentage of recipients who open your email. This metric can help you evaluate the effectiveness of your subject lines.
  • Click-through rate (CTR): The percentage of recipients who click on a link within your email. A high CTR can indicate that your email content is engaging and relevant.
  • Conversion rate: The percentage of recipients who take the desired action after clicking a link in your email, such as downloading your app, making a purchase, or signing up for a newsletter.
  • Unsubscribe rate: The percentage of recipients who opt out of receiving future emails from you. A high unsubscribe rate may suggest that your email content is not resonating with your audience.

Understanding the basics of email A/B testing is the first step towards optimising your mobile app marketing campaigns. By grasping the concept, benefits, and key metrics of A/B testing, you’ll be well-equipped to make data-driven decisions that drive real results for your mobile app.

Setting Up Your Test 

Defining Your Goal

Before you start setting up your A/B test, it’s crucial to determine the primary objective of your test. Having a clear goal will help you focus your efforts and make data-driven decisions based on the results. Your goal should align with your overall mobile app marketing strategy and be specific, measurable, attainable, relevant, and time-bound (SMART). Examples of goals for email A/B tests include:

  • Increasing the open rate by 10% within 30 days
  • Boosting the click-through rate by 15% within 60 days
  • Reducing the unsubscribe rate by 5% within 45 days

Selecting Variables To Test

Once you’ve set your goal, it’s time to choose the variables to test in your email campaign. The variables you select should have a direct impact on your goal and be something you can measure. Here are some common email elements to consider testing:

  • Subject lines: Test different wording, phrasing, or personalisation techniques to capture your audience’s attention.
  • Email content: Experiment with different content styles, lengths, or structures to see what resonates with your recipients.
  • Call-to-action (CTA): Try various CTA placements, wording, or button designs to encourage users to take the desired action.
  • Images and visuals: Test different images, colours, or visual layouts to determine which one drives higher engagement.
  • Personalisation: Compare personalised content, such as using the recipient’s name, to generic content to assess its impact on your metrics.

Creating Variations

Now that you’ve chosen your variables, it’s time to create the variations for your email campaigns. Keep the following tips in mind when crafting your variations:

  • Limit the number of variations: While it may be tempting to test multiple variations, it’s best to limit yourself to two or three, so you don’t dilute your results or prolong the testing process.
  • Make distinct changes: Ensure the variations are different enough to provide meaningful insights. For instance, if testing subject lines, one could be a question, while the other could be a statement.
  • Keep other elements consistent: To ensure accurate results, only change the variable you’re testing and keep all other elements the same across variations.
  • Consider your audience: When creating variations, take into account your target audience’s preferences and behaviours to craft relevant and engaging content.

Setting up an A/B test for your mobile app’s email campaigns is an essential step towards optimising your marketing efforts. By defining your goal, selecting the right variables to test, and creating effective variations, you’ll be well on your way to enhancing your app’s performance and building stronger relationships with your users.

Implementing & Analysing Your Test

Test Duration & Sample Size

Determining the optimal test duration and sample size is crucial for obtaining accurate and reliable results. Here are some factors to consider when deciding on these parameters:

  • Test duration: The length of your test should be long enough to gather sufficient data, but not so long that it delays your marketing efforts. Generally, a test duration of 7 to 14 days is recommended for most email A/B tests.
  • Sample size: Your sample size should be large enough to provide statistically significant results. Use an A/B test sample size calculator to determine the appropriate size based on your desired confidence level and the expected difference between variations.

Keep in mind that these recommendations may vary depending on your specific circumstances, such as the size of your email list or the frequency of your email campaigns.

Launching Your Test

Once you’ve determined the test duration and sample size, it’s time to launch your A/B test. Follow these steps to ensure a smooth test launch:

  • Segment your email list: Divide your email list into random, equal-sized groups to ensure a fair comparison between variations.
  • Send your variations: Schedule your email campaign to send the different variations to the corresponding segments of your email list.
  • Monitor the progress: Keep an eye on the key metrics, such as open rates, click-through rates, and conversion rates, throughout the test duration to ensure everything is running smoothly.

Analysing Results & Drawing Conclusions

After your test has concluded, it’s essential to analyse the data, draw conclusions, and apply your findings to future email campaigns. Here’s how to go about it:

  • Review the data: Examine the key metrics for each variation and compare them to determine which one performed better.
  • Check for statistical significance: Use an A/B test calculator to ensure the differences between the variations are statistically significant, indicating that the results are not due to random chance.
  • Draw conclusions: Based on the data, determine what you’ve learned from the test and how it can inform your future email marketing efforts. For instance, if a specific subject line format led to higher open rates, consider using a similar approach in future campaigns.
  • Apply your findings: Incorporate your learnings into your email marketing strategy to continually optimise your campaigns and drive better results for your mobile app.

Implementing and analysing your email A/B tests is a critical step towards optimising your mobile app marketing campaigns. By determining the appropriate test duration and sample size, launching your test, and analysing the results, you’ll be able to make data-driven decisions that enhance your app’s performance and foster stronger relationships with your users.

Best Practices

Consistent Testing

To achieve long-term success in email marketing for mobile apps, it’s crucial to make A/B testing a consistent part of your strategy. Regular testing allows you to:

  • Continuously optimise your campaigns: Stay ahead of the curve by continually refining your email campaigns based on data-driven insights.
  • Adapt to changing trends: Keep your email marketing efforts relevant and up-to-date by adapting to evolving user preferences, industry trends, and market dynamics.
  • Validate new ideas: Use A/B testing to validate new marketing concepts or tactics before fully implementing them in your campaigns.

Avoiding Common Pitfalls

As with any marketing endeavour, there are potential pitfalls to watch out for when conducting email A/B tests. Here are some common mistakes and how to avoid them:

  • Testing too many variables at once: Focus on testing one variable at a time to ensure accurate results and avoid confusion when analysing the data.
  • Ignoring statistical significance: Make sure your test results are statistically significant to avoid drawing conclusions based on random chance or insufficient data.
  • Focusing solely on short-term gains: While it’s essential to optimise for immediate results, also consider the long-term impact of your email marketing strategy on user retention and lifetime value.

Utilising Automation & Growth Hacking Strategies

Leveraging automation and growth hacking techniques can help streamline your email A/B testing efforts and drive even better results for your mobile app. Consider the following strategies:

  • Email automation: Use email marketing automation tools to schedule and send your A/B tests, track key metrics, and segment your email list efficiently.
  • Dynamic content: Implement dynamic content in your email campaigns to personalise messages based on user behaviour, preferences, or demographics, and A/B test the effectiveness of various personalisation techniques.
  • Multivariate testing: Once you’re comfortable with A/B testing, consider using multivariate testing to assess the impact of multiple variables simultaneously and identify the best combination of elements for your campaigns.

Mastering email A/B testing for your mobile app is an ongoing process that requires consistent effort, learning, and adaptation. By following best practices, avoiding common pitfalls, and utilising automation and growth hacking strategies, you’ll be well on your way to achieving long-term success in your email marketing campaigns.

As a data-driven full-funnel marketing agency, Favoured believes in the power of optimising every aspect of the customer journey, and that includes email marketing.

We’re dedicated to helping businesses drive real results, and A/B testing plays a crucial role in this process. Reach out if you want to supercharge your email campaigns with us. Happy testing!

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