Spatial CRM and location strategy: E-commerce solutions in the furniture industry. Case of IKEA pick-up points in Poland

Abstract

E-commerce in the furniture industry is specific as delivery of heavy and oversized parcels with traditional channels is not feasible. Alternative solutions, aside from stationary shops, include pick-up points which combine e-commerce purchasing with stationary collection. Convenient pick-up locations that support environmental sustainability and offer cost savings is a domain of Spatial Customer Relationship Management (CRM), which is not enough discussed in the literature. In this paper we develop Spatial CRM for the location strategy of pick-up points in the furniture industry, using IKEA Poland as a case study. We provide the methodology for analysing the spatial range of population potential for collection points and stationary shops based on radial catchment areas of 20 km and precise population data from a grid 1 km × 1 km. We compare this market coverage with customers' attraction to IKEA shops expressed through Google Trends searches to evaluate location strategies for furniture retailers. Our regional approach is responsive to local needs, improves CRM, and remains cost-effective for businesses. Given the similarity of European furniture markets in terms of consumer perspective and e-commerce development, our analysis methodology can be adapted for use in other countries and markets.