The competition in the retail business is escalating, and NorgesGruppen handles these challenges by the use of more knowledge on customer shopping behaviour and product relevance compared to their competitors.
BETTER DECISION SUPPORT TO THE MANAGEMENT
Using the customer loyalty card ’Trumf’ – which means trump in English – as well as analytical CRM (Customer Relationship Management) and a data warehouse, Mr. Fjeldstad and his colleges have gained tremendous knowledge on the shopping behaviour of their customers. This analytic concept is now enhanced by the use of Business Intelligence tools, offering far better decision support to the management through the means of reports and evaluations. The conclusions describe customer shopping patterns, as well as pinpointing trends and detailed sales growth of every product in stock. Approximately 1.500 new products are placed in the shelves annually, and the sales of every product is watched closely. None-selling products will be replaced by more potent products. The shopping and eating behaviours are surveyed and analysed. Detailed reports are made on every product category and follow-up of all suppliers are made. Sales campaigns can be initiated and evaluated immediately. The battle for keeping existing customers and getting new customers is not based on the price only. Studies are telling the importance of product, service and assortment quality, as well as focusing on the health and wellness benefits. All shops and products are aligned with this knowledge. Management clearly sees which marketing activity works.
– We spend a lot of resources on how to understand the customer behaviour, and in my mind this factor is crucial for our success. We measure the long term evolvement, thus showing us the patterns of change at an early stage, signalling the importance of new actions.
It resembles going on a long journey where one followsthe product sales curves. This ‘journey’ answers questions like ‘what happens with the product from shelf to customer’, ‘how to perfect the sale processes’,‘how to support product launches’, ‘how to support our suppliers’ etc., Truls Fjeldstad explains. –The closer we get to the customer, the more we feel secure that the products are to our customers’ satisfaction. Our competitive edge and our profits are improved. The NorgesGruppen Enterprise possesses facts and figures that are a huge benefit to us and our partners, concludes Mr. Fjeldstad. The IT solutions are delivered by Affecto Norway, which also very successfully has supplied several Business Intelligence systems to NorgesGruppen.
VALUABLE LOYALTY FROM THE CUSTOMERS AS WELL AS SOUND PROFITS FOR TRUMF
NorgesGruppen’s use of analytical CRM and enhanced Business Intelligence tools might be called their trump card: The group reports a total annual sale of NOK 36.6 billion and a profit of NOK 1.5 billion. The customer loyalty card Trumf, with the Shell oil company as a co-owner, has nearly 1 million household members and 1.7 million card users. These customers bought products worth more than NOK 15 billions last year, so you might call it a fairly good business.
The card use also is a success for the customers. They have a constant bonus of almost NOK 0.5 billion in savings, which might be converted into new products, events or just cash. Every Trumf card holder will have an additional bonus on electricity, heating, car rental and/or hotels. – Contrary to our competitors, we believe that customer clubs like Trumf will survive, simply because the customers are getting better product offers. At the same time we learn more about their actual product demands, giving a valuable loyalty as well as sound profits to us. The Trumf card might also be used as an ATM card, offering a very rational use. Almost 80 percent of the members use this facility. And nearly every second member uses the card daily, so we are very happy about this business, says Fjeldstad.
The cooperation with Affecto started in 1999. At that time Fjeldstad was actually heading the Trumf card company. Now he is the Director of Marketing and analytics at Norgesgruppen ASA. The data warehouse gathers and structures all data, he explains. It was established in 2000, mostly handling CRM-aspects.