Marketing Psychology for Small Businesses: The IKEA Effect

If you’ve ever stepped into an IKEA, you’ll know it’s more than just a store—it’s an experience. My first visit was a bit of a learning curve. Within seconds of entering, I spotted a chair I loved. But IKEA’s one-way layout meant I couldn’t double back. I had to navigate the entire store twice just to find it again. Fast forward to now, and while assembling IKEA furniture still tests my patience (looking at you, 18-hour shelving unit), I’ve discovered the magic of the IKEA effect. It’s not perfect, but because I built it, it feels special.

The IKEA effect explains why we value things more when we’ve had a hand in creating them. It’s why you treasure that wobbly bookshelf, or why meal kits like HelloFresh feel so rewarding. When you chop the veggies, follow the recipe, and plate up, it feels like your achievement, even though the kit does half the work. This principle isn’t limited to flat packs or food. For small businesses, it’s a game-changer.

Take, for example, the cheese-making course I attended recently. The owner didn’t just sell cheese-making supplies; she created an interactive experience. I learned to make feta, bought all the equipment, and left with an irresistible urge to tell everyone about it. Since then, three people I know have attended her course, and all of them stocked up on supplies just like I did. Why? Because the hands-on experience gave us a sense of pride and investment in what we created. That’s the IKEA effect in action.

So how do you bring this into your business? Start by thinking about ways to get your customers involved. If you’re a bakery, you could run a “design your own cupcake” workshop or competition. If you sell homewares, consider offering DIY kits or mini classes on how to use your products. I’ve worked with businesses that have done this brilliantly. One ran a “create your own scent” workshop, where participants designed their own perfumes. Another offered flower arranging classes. Both saw increased sales and a surge in customer loyalty because people felt part of the process.

Even smaller, everyday actions can have a big impact. When promoting a business brunch recently, I posted on LinkedIn asking my audience for help. “Can you share this with someone in Canterbury who’s a woman in business?” That one post generated more engagement than any I’d done in months. People shared it, commented on it, and privately messaged me. A similar post without that call to action barely made a ripple. Asking for support made people feel like they were part of something bigger, and that’s the beauty of the IKEA effect.

You can also use this principle to add value to your services. For instance, I’ve shifted how I run coaching sessions. Instead of teaching a concept and leaving it at that, we now apply it together in real time. My clients leave the session not just with knowledge, but with something they’ve built themselves—whether it’s a piece of content or a plan they can immediately implement. That active involvement makes all the difference.

If you’re in retail, think about offering small customization options. A planner company I came across lets customers choose the cover design and page layouts, which makes their product feel personal and unique. Even simple tweaks like offering different color options or letting customers vote on a new product design can foster a sense of ownership and connection.

The IKEA effect thrives on participation. When people feel they’ve contributed, they’re more invested. It’s about more than building a product; it’s about building relationships. Think about your own business. What’s one way you could involve your customers more? Could you host a workshop, offer customization, or even just ask for feedback in a meaningful way? Start small, test it out, and watch how your audience responds.

When you apply the IKEA effect, you’re creating something people care about deeply because they helped shape it. That’s the kind of loyalty money can’t buy. So why not give it a go? Let me know what you try. I’d love to hear your story and share it in the future.

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