Dagrofa views digitalization as a tool that enables them to acknowledge the customers and by doing so entice them to return to the store. It used to be much more difficult because the individual buying behavior was unknown. Fiftytwo has brought MENY and other retail chains into the digital age to the benefit of the customers.
MENY is a food market in Denmark and part of the Dagrofa group. Dagrofa is one of the largest retail food groups in the country and consists of independent grocers who run the majority of the group’s stores.
The MENY chain consists of 118 stores in Denmark, of which 13 are special MENY gourmet stores. The MENY chain employs well over 5,500 people.
Dagrofa’s need for digitalization of their marketing arose with the acknowledgement of “what we have always done” no longer works. “We see that in some areas 70% of consumers do not want advertisements in their mailbox. This makes it difficult to deliver catalogs. Concurrently, the consumers have become more insightful and pickier and have a higher expectation to service. We as retail food stores need to respond to these trends because there is a lot of competition,” says Lasse Gubbertsen, Loyality and Online Manager at Dagrofa.
Retail has traditionally focused on the product and mass communicated about the product, but it is no longer sufficient. Focus must be on the customer and the customer’s needs. Therefore, Dagrofa has to run the business and communicate in a whole other way.
MENY wants to know their customers better in order to being able to meet their needs and acknowledge them and hence keep them as customers. Customers can now enroll into the MENY customer loyality program using an app on their mobile phone. This helps MENY learn more about each individual customer and makes it possible to target their offers through personalized offers that match the specific customer and her buying behavior. In addition to in store discounts, each customer will continuously receive offers on product types and brands she already values.
Dagrofa requested that the customers’ credit card should work as their membership card. The customers activate their personal offers from their MENY app and when they pay with their credit card, the intelligent point-of-sale (POS) solution adds the discount to their purchase. “Our worst fear was by far that the customers didn’t want to add their credit card as a membership card. However, we have seen surveys that conclude that almost half of all Danish consumers were tired of membership cards and the like. Therefore, we want to make it as easy as possible for our customers, and it turns out that it has been widely accepted. This means that our fear was groundless,” Lasse Gubbertsen from Dagrofa says.
The app is a natural element of 52RETAIL, which is the POS solution used in MENY. The solution is able to execute campaigns on all sales channels simultaneously, online and in store, because the underlying units such as procurement, logistics, customer data etc. are all connected.
”Customers and their buying behavior have always been different, but we have never before been familiar with the details about our customers before. Now we do and that makes it possible for us to acknowledge them via customized service that corresponds to whom they are and how valuable they are to us,” says Lasse Gubbertsen, Loyality and online manager at Dagrofa. “When we know our customers’ buying behavior and individual preferences, we are able to meet their needs and reward them for choosing our stores.”
“Everything new is difficult and we are still learning. But I believe that the possibilities are infinite,” states Lasse Gubbertsen.
He fully acknowledges that it is a challenge for the retail industry to change direction, because digitalization demands investment and at the same time, established marketing efforts such as catalogs are still the norm for many.
“There is no point of return. From my perspective, I believe that it will all come down to being able to put yourself into the customer’s shoes and fulfil their needs. As an example, today time is in short supply for most people. Let’s look into this and find out how we can help customers to achieve more convenience in their everyday lives,” suggests Dagrofa’s Loyality and Online manager.