Elkjøp Customer Case: Personalisation Platform

Personalising the customer experience

Case Study

KPS Instant Personalisation Platform for Elkjøp

Excellent user experience through consistent personalisation

Omni-channel sales and cross-media communication, customer centricity and a personalised customer approach: The combination of the four strategic principles into a successful business model is not wishful thinking at Elkjøp, but is becoming reality. The largest electronics retailer in the Nordics has relied on KPS competencies to place a consistent and cross-channel personalised customer journey at the centre of its digital transformation.

 

Customer Centricity

Focus on the customer: A new look at digital transformation

When production and consumption patterns change, digitalisation is not always responsible. Accordingly, transformation pressure does not only come from technological progress or from the competition with highly specialised e-commerce players. At the latest since the outbreak of the Corona pandemic, we know: The most urgent impulses for strategic and technological change come from society. Bits and bytes are merely vicarious agents. They serve as tools necessary to meet the demands of increasingly demanding, flexible, and individualistic consumers.

We are a proud partner of KPS and working closely on the next generation retail project.
Julia Paulsen Director of E-Commerce Nordics bei ELKJØP

Resilience through flexibility: The new consumer behaviour

Informing oneself, choosing and shopping, either analogue or digital, depending on one's wishes and needs: it is not only the online-savvy generations Y and Z who have increasing expectations of product and service providers. In the time of the pandemic, the majority of consumers have adopted alternative, arbitrarily variable consumption habits. Flexible behaviour is becoming increasingly entrenched - on the one hand, because it proved its worth in the past crisis. On the other hand, it promises the highest resilience to all existing and coming imponderables in our everyday lives. 
man looking at tablet

Analogue or digital

Elkjøp recognised the importance of a customer-centric business model early on. With its international e-commerce presence and more than 400 shops in six countries, the Nordic electronics giant is in an excellent position to address customers both on- and offline according to their needs. 

Flexible shopping with an omni-channel provider

The flexibility to give consumers the choice between an analogue or digital shopping experience is a key advantage for successful customisation. But it only works if customers can switch seamlessly between the two worlds.

Personalisation in omni-channel environments: the typical problems

When it came to the practical implementation of seamless customer processes, Elkjøp was faced with challenges that retailers are very familiar with in an omni-channel context: a bumpy customer journey with unevenness in the transitions between the different media. The causes are usually inconsistencies in the areas of

  • Process organisation
  • Data management
  • Technological equipment
  • Distribution of the personalised shopping experience across all media channels and national borders
  • Problem-related know-how and personalisation skills in the workforce

Difficult starting position at Elkjøp 

Dovetailing the historically grown stationary business with the later added online trade in everyday life became increasingly challenging for Elkjøp. Strategic and technological deficits threatened to become business-threatening factors. Partially automated solutions that only worked with manual intervention were far from being a sufficient basis for a cross-media shopping experience with consistent registration and ordering processes. An all-around personalised customer journey was at best a vision, and the existing IT infrastructure could no longer cope with corrective interventions. Thus, the appropriate foundation for sustainable business development was missing.

Instant Transformation from KPS

In this difficult situation, Elkjøp made a conscious decision against further, time-consuming and costly patchwork solutions and for a comprehensive solution. They found it at KPS. The experienced digitisation experts immediately launched the highly flexible Instant Personalisation Platform. It now enables the construction of holistic digitisation solutions from modular functional components. The combination of solution components and best practices now enables a comprehensively effective, strategic, and technological renewal, precisely tailored to the respective operational environment. 

All business processes integrated

By choosing the Instant Personalisation platform, Elkjøp will have access to all the necessary functions, assets, and infrastructure it needs to march to the top of the market. The establishment of an SAP-based cloud solution serves as the basis for linking all of the company's business processes. Elkjøp relies on powerful technologies that enable the smooth transition between the different media worlds of the omni-channel universe. This is the decisive prerequisite for a continuously optimisable and highly personalisable customer journey.

MACH principles and business composability

As a partner of the MACH Alliance, KPS is deploying a powerful transformation model for Elkjøp to implement a resilient and future-proof IT architecture. Microservices, API-first, cloud-native SaaS, and headless (MACH) are the technological principles behind building an end-to-end customer-centric system.

For practical implementation, the design concepts of business composability are crucial. Modularity enables holistic transformation without the once unavoidable complexity of such measures. KPS delivers solution modules tailored to requirements and flexibly integrates them into the target context. The goal: a consistent environment in which customer approach, advice, sales, and service run seamlessly and individually coordinated across all channels.

Personalisation as a multi-level success lever

A consistently personalised customer experience can prove to be a real business booster, for example through:

  • Individual product selection support geared to the customer's personal interests,
  • the possibility to fill the shopping cart in the online shop and complete the purchase in the Megastore
  • the option to collect goods ordered and paid for online from the megastore of choice

And these are just a few of the personalised omni-channel scenarios that Elkjøp will be able to offer its customers in the future with the help of the Instant Personalisation Platform.

 

In addition to the singular identity that is assigned to the customer and accompanies him or her when switching between media channels, the personalised search and finding of products play a decisive role in the individual user experience. The following functions can have a sales-increasing effect:

  • displaying relevant product recommendations in the drop-down menu of the search box,
  • the strategic ranking of products in the search result lists,
  • The provision of recommendations based on products that were last seen or for which there is a particular affinity
  • The individual design of the start page as well as the detail pages and product lists based on insights into user activities and habits.

These and many other important personalisation options are made possible by consistent data and process management.

In control of the digital commerce future with instant personalisation

From a wide-angle view of the social context to a granular zoom into strategic and technological fine-tuning: with KPS at their side, companies develop the ability to build an individualised user experience from every perspective. The insights gained in the process are continuously incorporated into a customised transformation solution.

 

Elkjøp Nordic's customer-centric optimised business model unfolds a whole series of success-effective effects. They help the largest consumer electronics retailer in the Nordic countries to expand and secure its market position:

Handshake of two hands

Customer Lifetime Value (CLV)

Simply increase the loyalty of your customers to generate further purchases from them.
A shopping cart

Average Order Value (AOV)

To increase the relevance of the offer to your customers.
Two arrows that symbolize repitition

Conversion Rate (CR)

Create a more engaging customer experience so that your customer experience is convincing. You'll see the results in increased sales.
A megaphone

Net Promotor Score (NPS)

Only satisfied customers will buy from you again. Therefore, increase your customer satisfaction.
Handshake of two hands

Customer Lifetime Value (CLV)

Simply increase the loyalty of your customers to generate further purchases from them.
A shopping cart

Average Order Value (AOV)

To increase the relevance of the offer to your customers.
Two arrows that symbolize repitition

Conversion Rate (CR)

Create a more engaging customer experience so that your customer experience is convincing. You'll see the results in increased sales.
A megaphone

Net Promotor Score (NPS)

Only satisfied customers will buy from you again. Therefore, increase your customer satisfaction.
KPS Expert Talk Elkjøp: With holistic personalisation to the top

Elkjøp: With holistic personalisation to the top.

Modular Instant Personalisation from KPS can strengthen your company's market position in the long term. The optimisation of the omnichannel user experience at Elkjøp provides impressive proof. With the help of the sustainable KPS omnichannel strategy, the leading electronics retailer in the Nordics will be able to successfully defend its position and stand up against powerful competitors.

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