Elkjøp re-engages with customers to become the friendly face of electronics retail

Summary

By re-engaging its shoppers in authentic conversations, the company aims to become "the most consumer-focused and friendly electronics retailer on earth.”

ELKJØP was founded in 1962 by a cooperative of shoppers and has grown into the largest consumer electronics retailer in the Nordics. It boasts over 280 stores employing 9,000 people in seven countries. Now part of the Dixons Retail group, ELKJØP is working with Bazaarvoice to return to its customer roots. By re-engaging its shoppers in authentic conversations, it aims to become “the most consumer-focused and friendly electronics retailer on earth.”

Situation

ELKJØP strives to be the biggest and the best, with superior economies of scale and bulk buying capabilities bringing significant discounts to consumers. It’s a business model that has proved to be highly successful, but in 2010 ELKJØP realised that rapid growth had come at a price. It had lost its intimate relationship with customers, with feedback showing that shoppers sometimes saw it as a ‘faceless corporation’.

This also brought bottom line risks. With no clear means of communication, ELKJØP largely had to guess what its customers wanted in terms of product and service offerings. This lack of an effective engagement channel also meant that customers were talking about ELKJØP across social media, but the company had no way of taking part in the conversations.

ELKJØP needed to move from corporate monologue to consumer dialogue, understanding its customers better — and ultimately to go back to its roots as a company created by consumers for consumers.

Solution

ELKJØP saw online ratings and reviews as the perfect way to re-establish meaningful online engagement. It identified the top five providers in the space and Bazaarvoice emerged as the clear winner. ELKJØP’S Henning Kleiven said, “Bazaarvoice saw that this wasn’t a tick box exercise for us and offered the vision, strategy and technologies to create authentic customer engagement.”

Bazaarvoice’s Conversations solution brings ELKJØP engagement across channels. Its 9 websites offer customers clear calls to action, inviting comments on the products and service they have received. Incentives are used to encourage conversations, with monthly competitions promoted through their email newsletter, rewarding the best reviews with gift certificates.

Ratings and reviews are also encouraged via the company’s Facebook presence. It provides useful information to consumers using Bazaarvoice’s ‘Ask and Answer’ function, with the ability to call on ELKJØP and fellow customers for advice about products they are thinking of buying. At a time when the opinions of other shoppers is seen as increasingly valuable, this customer to customer channel establishes real trust in the ELKJØP brand.

Results

ELKJØP’S primary motivation for implementing ratings and reviews was to address consumer needs rather than securing immediate bottom line returns — but results have been immediate and significant:

  • ratings and reviews volume jumped by 429 per cent, virtually overnight;
  • customer web visits are now between 160 and 200 per cent longer;
  • consumers who interact with Bazaarvoice content are 300 per cent more likely to buy from ELKJØP than those who have not, and their average order value is between 20 and 30 per cent higher;
  • they are 200 to 350 per cent more likely to make another purchase on the website in the next month

The ‘Ask and Answer’ service also brings real benefits in terms of customer services, with ELKJØP seeing a reduction in volume at its call centres. It’s something that the company is exploring in more depth, with the objective of using new channels to cut costs while delivering better services.

ELKJØP is keen to gain even more value from Bazaarvoice’s authentic conversations, with plans to introduce ‘product testers’ where consumers can apply to pilot new products and share opinions using rich media such as video. So far, this process has resulted in product testers using rich content – photos and videos – in 90% of the reviews posted. ELKJØP is also looking at ways of leveraging the authenticity of user generated content in its marketing, with the aim of attracting — and keeping —new customers.

ELKJØP’S Simen Sundt says, “Working with Bazaarvoice, ELKJØP has rediscovered its customer roots. We’re now really talking ‘with’ our consumers instead of ‘at’ them and it’s transforming our relationship with the millions of people who shop with us. It’s helping us to achieve our goal of becoming the most consumer-focused and friendly electronics retailer on earth.”

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