Tesco’s Misstep vs IKEA’s Smart Play

Retailers make daily decisions that significantly impact customer experience. Some choices improve convenience, loyalty, and satisfaction, while others introduce friction and frustration, ultimately leading to customer churn. A recent comparison between Tesco and IKEA vividly illustrates this contrast: one company made a change that delighted its customers, while the other removed a feature that frustrated them. The key takeaway? Every decision in retail should be evaluated from the customer's perspective.

Tesco’s Unforced Error: Removing a Beloved Feature

Tesco recently announced that it will remove the ‘Pay In-Store’ feature from its Clubcard app, effective March 7. This feature allowed customers to pay and collect Clubcard points in a single, seamless step. Now, they must complete payment separately, adding unnecessary friction to a process they had come to value.

The response? Frustration. Customers feel inconvenienced, and worse, they perceive this change as a move away from customer-centricity. When shoppers build habits around a particular experience, any disruption needs a strong justification, one that Tesco has not provided.

The problem with Tesco’s approach:

• They removed a feature customers valued without offering a compelling reason or benefit.
• The change makes transactions less convenient, adding effort instead of removing it.
• There was no clear communication about what customers gain in return.

The result? Unhappy customers who feel their loyalty is being taken for granted.

IKEA’s Smart Play: Removing Friction, Adding Value

In contrast, IKEA recently enhanced its customer experience by making it easier to book furniture assembly services. Recognising that many customers struggle to assemble flat-pack furniture, IKEA integrated TaskRabbit’s services into its checkout process. The results? A 50% increase in assembly bookings, a boost in average order values, and reduced product returns.

Why IKEA’s move worked:

• It directly addressed a well-known customer pain point—complex furniture assembly.
• The solution seamlessly integrated into the existing shopping journey rather than adding extra steps.
• It provided clear, tangible benefits: less hassle, time savings, and a smoother customer experience.

Customers aren’t just satisfied with IKEA’s decision; they’re willing to spend more because of it. That’s the hallmark of a great retail move.

The Takeaway for Retailers

Every change a retailer makes should pass the “Customer Impact Test.” Ask:

1. Does this make things easier or more challenging for the customer? If it adds friction, rethink it.
2. Are we solving a customer pain point? If not, consider whether the change is necessary.
3. Are we explaining why this change is happening? Transparency builds trust.
4. What do customers gain? If they perceive loss, they need to see a clear benefit.

IKEA solved a customer pain point, while Tesco removed customer convenience. The difference? One delighted customers, while the other frustrated them.

Retailers who want to stay competitive must follow IKEA's example: reduce friction, solve real problems, and make life easier for customers. When customers win, so does your bottom line.