Pluspoint Case #2: Retail Network, part of Telenor Group. Converting an offline consumer electronic retail network into a hybrid retail format
Every year the retail industry grows by 3-4%, but offline retailers gain less and less because of the fierce competition from e-commerce, especially giants like Amazon. Our client was a big name in offline retail (152 locations, 4500 employees) but faced big problems due to increased competition from both online and offline merchants. They decided to use Pluspoint to improve their online presence to drive more foot traffic to their stores.
- The number of clients was rapidly declining. Due to the growth of competition and the influence of e-commerce, the number of yearly new clients fell by 30%.
- Sales were down by 45%. That influenced the working capital volume, leading to a decrease in the assortment.
- The NPS index was negative. The number of repeat visits dropped twofold.
- The average rating of all locations on Google Maps was 3.7. Due to low rankings, Google excluded locations from local search results, contributing to decreased foot traffic.
- There was a problem with the staff engagement, but the management could not find ways to solve it.
- Improve the average rating of locations to at least 4.2, so they are consistently shown in search results like “'Best electronics stores near me”.
- Find out why customers were not enthusiastic about going to the stores.
- Understand the points of growth in customer service.
- Implemented after-purchase NPS surveys via email.
- QR codes with the ability to leave feedback were printed on receipts.
- The customer service and marketing team started to monitor and manage online reviews.
- Gamification elements and employee bonuses were introduced based on NPS scores.
- The insights helped the retail chain segment the target audience and reform shop formats. They closed 30% of their underperforming physical stores and introduced a hybrid sales system.
- Client Lifetime Value doubled.
- Recurring visits went up by 40%
- Gross margin increased by 185%
If you are in retail and want similar results, do not hesitate to book our free consultation on your retail business marketing and growth.