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Get your customers to do the work!


Ikea Effect in behavioural economics

There was a time when we would not think of making our customers do any work, it would have seemed like poor customer service. And how did that turn out for us?


I remember when IKEA opened in Calgary, I think I was among many people who wondered how they kept so much stock and then a little puzzled when we discovered we would have to MAKE our furniture or accent piece. And then grumbled as we built it, frustrated at the lack of clarity and not amused by the little man in the instructions.

But this was a huge success, accounting for more square feet than any traditional retail furniture or accessory store.


By definition, of 'The IKEA effect' is a cognitive bias that shows that people place a higher value on things they helped to build or create.


Aside from Ikea, we have seen this executed successfully in a number of ways:

Build A Bear

Distilleries - make your own beer, gin, etc

Candle making workshops


The concept can be reflected back to when we were kids and we would get excited about bringing our art project home and showing our mom or making gifts in class for mothers day or to celebrate holidays.


We also place higher value on what we customize, when we modify our vehicle, new rims, a performance kit, custom paint etc. All of these are for our own preference and enjoyment but when we go to sell, we also think this makes our vehicle more valuable to other people, when unless we find the right buyer, generally the customization is for our value only.


When customers participate in the creation, they take more pride in the finished product (think of homeowners that custom build vs buy pre-built) and deem it more valuable even if it is not.


When a customer engages you, consider how you can have them contribute to the success, this will help them stay committed and hold more pride in the finished product.


***of note: this does not apply to self check outs however we are extremely proud when we get all items into one bag!



Let's talk about how we can use behavioural insights in your business for more effective results.

Julie Boake

awedity

403 560 6554

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