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In the autumn of 2016, we laid the foundation for what was at that time the world's worst business case: To help our customers keep track of their physical receipts, so they were guaranteed to receive their vouchers - a free product - which was delivered by total purchase for DKK 1,000. But digital implementation, in an analog profession, turned out not to be as easy as smearing a bun with cheese. After countless tests, development of cash registers and onboarding of staff, we solved the challenges in the stores and the intended improvement of the customer journey was now a reality We digitized and took the experience of “going to the baker” out of the bakery. The implementation of Click & Collect was a business and convenient success. It ensured the loyalty that we built up among our customer group and which today forms the foundation of the solid omnichannel experience. From v1.0 to v2.0: From transaction to relationship In 2021, we switched from loyalty v1.0 to v2.0. This resulted in 99 stores with Click & Collect, and a rethinking of our loyalty program to what we know today. Danish ”Vores brand må ikke blive forbundet med følelsen ærgerlig” Udtalelsen der dannede grundlag for vores digitale eventyr. I efteråret 2016 støbte vi fundamentet til, hvad der på daværende tidspunkt var verdens værste business case: At hjælpe vores kunder med at holde regnskab over deres fysiske kvitteringer, så de var sikret at få udleveret deres bonkringler - et gratis produkt - der blev udleveret ved samlet køb for 1000 kr. Det blev til appen LKH+, hvis eneste formål var at håndtere kundens fysiske kvitteringer, omdanne dem digitalt og dermed fungere som en digital pung til kunders bonuspoint. Analoge arbejdsgange automatiseres Det første digitale spadestik viste sig som en kæmpe succes, med en tilfredshed blandt vores kunder der i dag taler for sig selv. Vi digitaliserede småt men godt, i en meget stolt og traditionel branche. Potentialet af digitaliseringen var ikke til at tage fejl af, med mange downloads og et stigende brugertal: op mod 90.000 medlemmer i slutningen af 2018. Vi havde skabt noget, der kunne bygges videre på. Men digital implementering, i et analogt erhverv, viste sig ikke at være lige så let som at smøre en bolle med ost. Efter utallige test, udvikling af kasseapparater og onboarding af personale, løste vi udfordringerne i butikkerne, og den tiltænkte forbedring af kunderejsen var nu en realitet. Vi digitaliserede og tog oplevelsen “at gå til bageren” ud af bageriet. Implementeringen af Click & Collect blev en forretnings- og convenient mæssig succes. Det sikrede den loyalitet som vi opbyggede blandt vores kundegruppe og som i dag danner fundamentet for den solide omnichannel-oplevelse. Fra v1.0 til v2.0: Fra transaktion til relation I 2021 skiftede vi fra loyalty v1.0 til v2.0. Det resulterede i 99 butikker med Click & Collect, og en nytænkning af vores loyalitetsprogram, til det vi kender i dag. Overgangen betød et skift fra et transaktionelt forhold med fokus på et enkelt produkt, til et relationsbaseret forhold med valgfrie produkter. Kunderelationen bygger på kundedata, hvilket gør det muligt at segmentere og målrette al kommunikation direkte til den enkelte kunde. Strategisk har vores digitale tilstedeværelse bidraget til at gøre vores forretningsmodel antifragile. Det betyder, at vi står utrolig stærkt både i forhold til konkurrenter og den uafhængige omverden vi står overfor. Digitalisering af kunderejsen Loyalty v2.0s vigtigste opgave er at hjælpe vores kunder så nemt som muligt igennem butikken. Kunden kommer ind, trækker et digitalt kø nr. med sin app, medarbejderen får nu kundens oplysninger frem på kassen, og kunden får en personlig købsoplevelse, baseret på kundens loyalitets-profil og point. Når transaktionen er færdig får kunden point direkte tilknyttet profilen, der kan bruges på gratis produkter. 114 selvstændige webshops Hvert enkelt Lagkagehus er i dag en selvstændig behandlet webshop med produkter, som har én dags holdbarhed. Samlet set giver det 114 butikker i ind- og udland herunder England og USA, med særskilte åbningstider, produkter, priser, valuta, mængder, afhentningsmuligheder og leveringstider. Microsoft Dynamics håndtere alle produktinformationer, ekstra bestillinger fra butikker samt priser. Informationen uploades til Google Firebase, som kunderne er forbundet til via enten iOS eller Android app. Ved valg af butik kan den enkelte kunde se tilgængeligt sortiment, priser afhentning- og leveringstider. Vi samler brødkrummerne og bruger dem Vi har kigget yderligere ind i kunderejsen både gennem en gennemgribende analyse af 42 millioner transaktionslinjer, samt ved at kigge på hvilke konkrete touchpoints forbrugeren oplever, ved at handle hos en traditionel bager i dag. Hvert touchpoint er blevet genbesøgt med en digital og løsningsorienteret tankegang, for at højne niveauet og brugeroplevelse og kunne tilbyde en værdiskabende kundeklub, hos hele eller dele af målgruppen. Det har vi gjort ved at rykke så meget som muligt af kunderejsen fra traditionelt fysisk fremmøde over til digitale kanaler. Skiftet har betydet en omfattende træningsproces af flere tusinde medarbejdere. Det seneste tiltag er muligheden for at få medarbejderrabat gennem den kundevendte app. Her skaber vi en relation mellem medarbejder og app, så vores medarbejdere bedre kan agere ambassadører for loyalty v2.0. Fokusskiftet fra fysisk fremmøde, til digitale kanaler, har gjort det muligt at indsamle kundedata. Derigennem har vi fået en langt bedre forståelse af købsmønstre hos forskellige kundetyper og vi kan nu sammensætte målrettede tilbud til de segmenter, som vi i dag kommunikere med. Vi kan det meste for de fleste Med loyalty v2.0 har vi skabt en endnu stærkere omnichannel tilstedeværelse, som tydeligt mærkes hos vores kunder. Vi tracker 125 mill. digitale touch points på vores kunder pr. løbende 30 dage, på tværs af markeder, som anvendes til segmenterede og målrettede budskab. Tallene taler for sig selv Vi har i skrivende stund 189.000 danske aktive app-brugere – dvs. brugere der har været aktive i app indenfor de sidste 30 dage, kontra 42.000 i 2019. Yderligere har vi over 500.000 brugere tilmeldt vores kundeklub. Det svarer til knap 11% af den voksne danske befolkning. Salg direkte via app, er steget 316% fra 2020 til 2021, altså næsten en firedobling. Netsalget via loyalitetsklubben er steget 132% fra 2019 til 2021. Click & Collect holder en basketsize som er 60% større ved køb via app, kontra køb i butik. Ydermere holder vi en høj retention rate: 65% af de kunder, der tilmeldte sig kundeklubben i 2020 er stadig aktivt handlende kunder, med en gennemsnitlig købsfrekvens på 1.6x pr. måned. Vi opererer i en sårbar en branche. Hvis vi som virksomhed ikke fornyer os og følger med detailhandlens digitalisering, overhales vi af bake-off og convenience. Derfor er det helt afgørende for os som vækstende detailhandelsvirksomhed at digitalisere vores forretningsmodel, og tænke fremad. Derfor har vi arbejdet fokuseret med vores digitale univers, selvom der ikke er tradition for det i vores branche, som vi kender den i dag. Vi er ikke længere ”bare” et bageri - Vi er fremtidens bageri Vi kan konstatere at loyalty v2.0 også understøtter vores forretningsopbygning i udlandet. For nylig er vi udpeget af Retail Week som en af de fem bedste online shop-løsninger – sammen med Nike og H&M. Det er vi stolte af. I UK hedder vi Ole & Steen. Læs anmeldelsen her: https://www.retail-week.com/retail-voice/secret-shopper-how-five-of-the-uks-most-innovative-loyalty-schemes-are-winning-customer-spend/7040947.article?authent=1 Derudover er vi nomineret til Dansk Erhvervs E-handelspris 2022. Vores e-commerces succes afspejles også i placering af vores app i kategorien Mad og Drikke i app-store. Her ligger vi mere eller mindre konstant i top 10 – og ofte på førstepladsen. Man skal gøre sig fortjent til sine kunder og sine brugere. Og netop udtalelsen ”frictionless experience” fra “Retail Week” tager vi som et kvalitetsstempel. Det er ikke nok, at vi kan opsamle statistik og tilbyde relevante offerings. Det skal gøres elegant. Og aldrig på bekostning af brugeroplevelsen. Det er lykkedes. English (Google translate) "Our brand must not be associated with feeling annoying" The statement that formed the basis of our digital adventure. In the autumn of 2016, we laid the foundation for what was at that time the world's worst business case: To help our customers keep track of their physical receipts, so they were guaranteed to receive their vouchers - a free product - which was delivered by total purchase for DKK 1,000. It became the app LKH +, whose sole purpose was to handle the customer's physical receipts, transform them digitally and thus act as a digital wallet for customers' bonus points. Analog workflows are automated The first digital solution turned out to be a huge success, with satisfaction among our customers who today speak for themselves. We digitized small but well, in a very proud and traditional industry. The potential of digitalisation was unmistakable, with many downloads and a growing number of users: up to 90,000 members by the end of 2018. We had created something that could be built on. But digital implementation, in an analog profession, turned out not to be as easy as smearing a bun with cheese. After countless tests, development of cash registers and onboarding of staff, we solved the challenges in the stores and the intended improvement of the customer journey was now a reality. We digitized and took the experience of “going to the baker” out of the bakery. The implementation of Click & Collect was a business and convenient success. It ensured the loyalty that we built up among our customer group and which today forms the foundation of the solid omnichannel experience. From v1.0 to v2.0: From transaction to relationship In 2021, we switched from loyalty v1.0 to v2.0. This resulted in 99 stores with Click & Collect, and a rethinking of our loyalty program to what we know today. The transition meant a shift from a transactional relationship with a focus on a single product, to a relationship-based relationship with optional products. The customer relationship is based on customer data, which makes it possible to segment and target all communication directly to the individual customer. Strategically, our digital presence has helped make our business model antifragile. This means that we are incredibly strong both in relation to competitors and the independent world we face. Digitizing the customer journey Loyalty v2.0's most important task is to help our customers as easily as possible through the store. The customer comes in, draws a digital queue number with his app, the employee now gets the customer's information on the checkout, and the customer gets a personal shopping experience, based on the customer's loyalty profile and points. When the transaction is complete, the customer receives points directly linked to the profile, which can be used on free products. 114 independent webshops Every single Lagkagehus is today an independently processed webshop with products that have a one-day shelf life. In total, it provides 114 stores at home and abroad including the UK and US, with separate opening hours, products, prices, currency, quantities, pick-up options and delivery times. Microsoft Dynamics handles all product information, additional orders from stores and prices. The information is uploaded to Google Firebase, which customers are connected to via either the iOS or Android app. When choosing a store, the individual customer can see the available range, prices, pick-up and delivery times. We collect the bread crumbs and use them We have looked further into the customer journey both through a thorough analysis of 42 million transaction lines, as well as by looking at what specific touchpoints the consumer experiences, by shopping at a traditional bakery today. Each touchpoint has been revisited with a digital and solution-oriented mindset, in order to raise the level and user experience and be able to offer a value-creating customer club, to all or parts of the target group. We have done this by shifting as much as possible of the customer journey from traditional physical attendance to digital channels. The change has meant an extensive training process of several thousand employees. The latest initiative is the ability to get employee discounts through the customer-facing app. Here we create a relationship between employee and app, so that our employees can better act as ambassadors for loyalty v2.0. The shift in focus from physical attendance, to digital channels, has made it possible to collect customer data. Through this, we have gained a much better understanding of buying patterns among different customer types and we can now put together targeted offers for the segments with which we communicate today. We can do most things for most With loyalty v2.0, we have created an even stronger omnichannel presence, which is clearly felt by our customers. We track 125 million. digital touch points on our customers per. continuously 30 days, across markets, which are used for segmented and targeted messaging. The figures speak for themselves At the time of writing, we have 189,000 Danish active app users - ie. users who have been active in the app within the last 30 days, compared to 42,000 in 2019. In addition, we have over 500,000 users registered for our customer club. This corresponds to almost 11% of the adult Danish population. Sales directly via the app have increased by 316% from 2020 to 2021, ie almost quadrupling. Online sales via the loyalty club have increased 132% from 2019 to 2021. Click & Collect maintains a basketball size which is 60% larger for purchases via the app, as opposed to purchases in stores. Furthermore, we maintain a high retention rate: 65% of the customers who joined the customer club in 2020 are still actively trading customers, with an average purchase frequency of 1.6x per. month. We operate in a vulnerable industry. If we as a company do not renew ourselves and follow the digitalisation of the retail trade, we will be overtaken by bake-off and convenience. Therefore, it is absolutely crucial for us as a growing retail business to digitize our business model, and think ahead. Therefore, we have worked focused on our digital universe, even though there is no tradition for it in our industry as we know it today. We are no longer "just" a bakery - We are the bakery of the future We can state that loyalty v2.0 also supports our business structure abroad. We have recently been named by Retail Week as one of the top five online shop solutions - along with Nike and H&M. We are proud of that. In the UK we are called Ole & Steen. Read the review here: https://www.retail-week.com/retail-voice/secret-shopper-how-five-of-the-uks-most-innovative-loyalty-schemes-are-winning-customer-spend/7040947.article? authent = 1 In addition, we are nominated for the Danish Chamber of Commerce's E-commerce award 2022. The success of our e-commerce is also reflected in the placement of our app in the Food and Drink category in the app store. Here we are more or less constantly in the top 10 - and often in first place. You have to earn your customers and your users. And precisely the statement "frictionless experience" from "Retail Week" we take as a seal of quality. It is not enough that we can collect statistics and offer relevant offerings. It must be done elegantly. And never at the expense of the user experience. It has succeeded. Lagkagehuset Søren Bo Steendahl Head of Group Digital Mads Lyngsdal Group Digital Assistant Samarbejdspartnere Ursula Krogsbøll Direktør, digital strategi og innovation hos Miracle A/S Retail Week Category: Commerce, Customer Experience, Digital Value Proposition, ROI https://danishdigitalaward.dk/project/fra-dej-til-data/