IKEA

A hypothetical solution that leverages AI technology to help users resell old furniture via IKEA.

Linh Ly, Angela He, Kristina Moroz, Lillian Cheng, Milan La, Nyla Canete

Product Design
2024
Project Overview

SUSTAINABILITY EFFORTS BECOME FUTILE

In 2021, IKEA announced the buyback program, aimed at reducing waste.

However, users highlighted issues in the program, such as high interaction costs and inconsistencies, creating negative user journeys. As a result, customers lost trust in the program.The inconsistency of IKEA’s current buyback process coupled with customer dissatisfaction presented a clear opportunity to streamline the experience.

Through market research and user sentiment analysis (from Reddit), I  learned that the program needed an update to make it faster and unambiguous. I felt that automating the process via AI would improve the program. Leveraging AI allows for faster item identification, condition vetting, and process automation; significantly reducing wait times.

Also, repositioning the program in IKEA’s IA would help create a more circular experience for users that remains consistent with IKEA’s business goals. These improvements would greatly improve customer perception of the product and encourage customers to participate in the buying and reselling of IKEA furniture.

Imapact

Since this was a design challenge as part of a hackathon, my team and I did not have time to measure the impact of our design. However, if given the opportunity, I would measure feature adoption usage, customer life time value, and sales of As-Is items. These metrics can help use see if the updated process has lower churn rates and increased chances of IKEA customers using the buyback feature multiple times.

discovery
WHAT AM I TRYING TO SOLVE?

Thousands of items end up in landfills when they shouldn’t be.

By 2030, IKEA wishes to reduce furniture waste throughout their entire production process by implementing a circular product model. As an effort to move toward that goal, the buyback program was created. The program would create a circular product loop where old products could be either refurbished, remanufactured, recycled, and resold by IKEA. However, it wasn't very successful.

According to a survey, approximately 30% of IKEA customers were somewhat likely to use the buyback feature. (source: Civic Science)
HOW DOES THIS AFFECT BUSINESS?

Ikea’s attempt to encourage sustainability fails.

The program has had a very low success rate. Approximately on 30% of IKEA customers are somewhat likely to use the new program. This means  that there is a high possibility of IKEA items ending up in the trash. 

In IKEA's 2018 report to the World Economic Forum estimated that 13.5 million items could have been recycled. Additionally, in 2022, IKEA reported a loss of approximately $1.7 billion due to supply chain issues. Though these issues were created by the pandemic, they could have been fulfilled by old refurbished items.

research
Secondary research: User sentiment analysis by Reddit

FRICTION STANDS IN THE WAY OF SUSTAINABILITY

Customers vent frustration about program on Reddit

I turned to Reddit to grasp user perception of the program. However, following up with user surveys and interviews about the functionality of the program would validate these insights across a wider audience.

Parsing through the reviews, I found three main pain points of the buyback experience: inconsistent experiences across geographic location, confusion about the eligibility of an item, and poor communication throughout the process. This ultimately led to frequent negative user journeys.

To better grasp why users were having negative journeys, I mapped out the user flow and noticed a lot of redundencies. The program had users navigate from the program information page, to a login page, and back to the program page. This increased interaction costs and created user friction. Additionally, the wording used throughout the program did not provide users with clear information about the next steps.

Sequential steps in the buyback program.
PROBLEM STATEMENT

How might we streamline and automate IKEA’s buyback program so that customer feel happier with their overall experiences and encouraged to sell back second-hand items?

PROBLEM/ OPPORTUNITY SPACE
CHALENGE 1: MESSY SITEMAP BURIED BUYBACK PROGRAM

How might we optimize and restructure IKEA's sitemap and confusing navigation to make the buyback program more visible and accessible for interested customers?

CHALLENGE 2: HIGH INTERACTIN COSTS DAPER CUSTOMER EXPERIENCE

How might we reduce the amount of steps and streamline the buyback process for customers who are on the go while not taking away from the general shopping experience?

IDEATION
DAY 1: HOW TO CREATE AN MVP

AN MVP FEATURE TO INCREASE ADOPTION

We focused on a web redesign with a mobile app in mind

Together with my team, we came up with different ideas on how to tackle the problem. One of the first challenges was figuring out what platform we would work on. After deliberating, many of the members voted to prioritize the desktop experience. Since the decision was split, I and a few other teammates worked on the mobile app.

Updating the experience on IKEA's mobile app allowed us to take advantage of a phone's camera. This feature along with AI capabilities could help us design a solution that would expedite and streamline the buyback process. Although reducing the interaction costs in the buyback program was a goal, we needed to first make the program easy to find.

There were various things to consider when re-designing the buyback program, mainly time and resources. Because this product was an MVP feature, I prioritized solutions that would be easy and quick to implement.

Early wireframes of the buyback redesign began in the purchase history. From there users were able to select their items and upload recent photos.

Although my idea for the mobile app design was introduced as a feature in our team's final presentation, I still mapped out the entire experience on the app.

Designs
SOLUTION 01: RESTRUCTURING THE INFORMATION ARCHITECTURE

MOVING THE PROGRAM OUT OF SUPPORT PAGES

We reconfigured the sitemap to place the program somewhere relevant and easy to find.

User sentiment analysis and flow mapping highlighted a confusing information architecture on IKEA's homepage.

The buyback program was hidden away in the Support and Services tab, making it difficult to find and creating unnecessary user friction.

Additionally, the sequential steps within the process were repetitive, creating too many interaction costs and increasing the likelihood of negative user experiences, resulting in high churn rates and low feature adoption. Since users need to sign-in to access the program, I positioned the buyback program within the user hub. This reduced interaction costs. With the addition of AI in the buyback process, the entire process was speedier and less tedious.

New sequential steps for the buyback program. AI eliminates the need for users to look through a large catalog of items in order to pick out their item
SOLUTION 2: INCLUDING AI TO SPEED UP THE PROCESS

OPTIMIZED SEARCHES MEANT FASTER IDENTIFICATION AND VETTING

Merging camera capabilities + AI to automate search, identification and vetting of old items.

Although the prompt stated that our team should redesign the website, I began the redesign on IKEA's app. Research pointed to most users relying on the mobile app to engage with IKEA, ideating interior design choices and making purchases. I also wanted to merge AI technology with phone's camera to optimize the process. Users could now simply point their camera at the item and scan it. The AI feature would take care of the rest.

Borrowing from my mobile design, on the desktop design, I decided to integrate the AI feature into the already existing search bar. This opened up the ability to expedite the process of identification and vetting, which were necessary in the buyback process.

Additionally, many users complain about arriving at IKEA only to have their item returned because it was not eligible. Having an AI identify the item, verify its eligibility, and appraise the condition would automate the process and remove the ambiguity.

SOLUTION 3: MAKING THE PROGRAM RELEVANT TO CUSTOMERS

A CIRCULAR PRODUCT LOOP WITH PURPOSE

Establishing feedback between the buyback program and the As-Is department

As the program currently is, the experience of selling back items and purchasing second-hand items feels disconnected, almost like two separate things. However, in connecting the experiences users could see the impact of their resales. In doing so, it may incentivize them to sell the item through IKEA and not through other marketplaces (like Facebook, Craigslist, etc).

FINAL DESIGN
TAKEAWAYS

Reflecting on the hackathon

The design challenge was exciting as it was my first time working with a team. In hindsight, it would have been good to test our designs and simplify our solutions. I think that in testing our designs early, we would been able to clearly measure which ideas worked and which did not.

Regarding my design, I believe it would have been a good solution, especially if implemented only on the mobile app. To measure the quality of the design success, I would have looked used feature adoption rate and time on task metrics to measure success.  I also believe that online sales of As-Is items would be a good indicator of the redesign’s success.

Results
Retrospective

Reflecting on the hackathon

The design challenge was exciting as it was my first time working with a team. In hindsight, it would have been good to test our designs and simplify our solutions. I think that in testing our designs early, we would been able to clearly measure which ideas worked and which did not.

Regarding my design, I believe it would have been a good solution, especially if implemented only on the mobile app. To measure the quality of the design success, I would have looked used feature adoption rate and time on task metrics to measure success.  I also believe that online sales of As-Is items would be a good indicator of the redesign’s success.