© 2016 Tealium Inc. All rights reserved.
© 2016 Tealium Inc. All rights reserved.
Mark J. ChaudhryHead of Customer Data Services, Coop Denmark
Digital Transformation in Retail
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Most important indigital transformation…
people
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Most important in Coop’s digital transformation…individual retail consumer
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Most important in Coop’s digital transformation…mindset, vision, leadership
Coop Denmark’s CEO,Peter Hoegsted
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Most important in Coop’s digital transformation…collaboration in innovation
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Most important in Coop’s digital transformation…strategic partners
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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).
© 2016 Tealium Inc. All rights reserved.
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
© 2016 Tealium Inc. All rights reserved.
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/)
© 2016 Tealium Inc. All rights reserved.
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”)
© 2016 Tealium Inc. All rights reserved.
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.
© 2016 Tealium Inc. All rights reserved.
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
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Coop CRM / Marketing Cloud
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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.
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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
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3 years
…so no market validation / ROI
No technological proof of concept …
+++ €
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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!
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We
individual retail consumers
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Thank you!
© 2016 Tealium Inc. All rights reserved.
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