DVEU16: Digital Transformation in Retail


Mark J. ChaudhryHead of Customer Data Services, Coop Denmark

Digital Transformation in Retail


Most important indigital transformation…

people


Most important in Coop’s digital transformation…individual retail consumer


Most important in Coop’s digital transformation…mindset, vision, leadership

Coop Denmark’s CEO,Peter Hoegsted


Most important in Coop’s digital transformation…collaboration in innovation


Most important in Coop’s digital transformation…strategic partners


Coop DenmarkCoop’s company name is an abbreviation of co-operative.

A co-operative is an organisation owned by its members.

The main purpose is to satisfy the needs of the members – provide the most benefit – not to maximise profit for shareholders.The World’s first co-operative was founded in 1844 in England (weavers in Rochdale north of Manchester – buying sugar, flour and butter in bulk at a volume discount).


Biggestretailer in Denmark

Coop Denmark sells mostCoop Denmark

1,200 + 2 + 1stores + web shops + bank

38%market share

1/3of all food

40,000employees

=

7 billionturnover€ 10%

employed @ Coop

1.5million members

50%of all ecology

103 millionbeers


Mark J. ChaudhryHead of Customer Data Services, Coop Denmark

• Marketing / digital start-ups (1998 to 2012).• Top line growth innovation – Program Management (logistics) @ Damco A.P. Moeller Maersk (2013 to 2014).• Service Owner / Business Relationship Manager @ Coop Denmark (2014 to 2015)• Head of Customer Data Services @ Coop Denmark (2016 -• Executive MBA, MMT (Master in Management of Technology) (innovation).• Pretotyping (http://www.pretotypelabs.com/)


Customer Data Services Facilitate the development and execution of

Coop’s customer data strategy

Define and collect data and act on and evaluate information about individual retail consumers

Understand the needs / preferences of the individual retail consumers

Enable personalised, omni-channel customer experiences

Enable 1:1 relationships / loyalty between individual retail consumers and Coop Denmark

Pretotyping (innovation – “very early market validation”)


Challenges for Coop DenmarkObstacles to Customer Centricity

Capabilities

Strategy

StructurePeople

ProcessesRewards

Disconnect between corporate strategyand autonomous organisational

behaviourresulting in sub optimisation.Heavy and slow innovation process

resulting in sub optimisation.

Wrong mindset: “Who owns the

customer”?Result: Sub optimisation.

Organised by line and staff.Functional silosresulting in sub optimisation.

Different and not transparent reward systemsresulting in sub optimisation.

Not systematic cross functional collaboration

resulting in sub optimisation.


Challenges for Coop DenmarkObstacles to Customer Centricity

Capabilities

Strategy

StructurePeople

ProcessesRewards

Data in silosChaos at the data layer

People in silos

Chaos in the innovation process

Poor collaboration


Coop CRM / Marketing Cloud


Personalized Display Advertisement

More individually relevant membership offers in banners on

external websites will increase conversion rates

resulting in higher profit in SuperBrugsen stores.

Deliverables1. Technological Proof of

Concept.2. Market validation / ROI

Macro conversion: Members bought more in the stores of the products they where exposed to.


Personalized Display Advertisement

Normal display advertisement (before)• 50-150 products on offer (those from the printed special offers)• Someone selects 16 products (gut feeling)• Segment bought and served to via display network (Adform)• 4-5 impressions


3 years

…so no market validation / ROI

No technological proof of concept …

+++ €


Personalised Display Advertisement

Offline purchase history, e-mail address,algorithm for product relevance (weight)

• 440,000 in segment• 60,000 identified• 2 x 30,000 split• 30,000 in control• 3 weeks!


We

individual retail consumers


Thank you!

DVEU16: Digital Transformation in Retail

Marketing

Transcript of DVEU16: Digital Transformation in Retail