2. Customer engagement concepts
Vectia Case: Pfizer
Healthy solutions with customer insight
Starting point
At Pfizer organisational change worked as a catalyst for new ideas as the change from country units to global business units encouraged Pfizer to find new ways to serve customers and created a need for deeper customer insight into strategic accounts and to provide solutions for customers.
Objective of cooperation
A central aim of the process was to change Pfizer’s sales orientation from products to solutions. At first the team members found it hard to ask questions instead of providing answers, but when the project continued Pfizer realized that real solutions are based on the challenges pointed out by their customers. With the insight gained from customer meetings, concrete solutions that really solve the challenges of customers we developed.
Results and business impacts
Also the customers have benefitted from Pfizer’s new sales orientation, as also they attained valuable information in the meetings with Pfizer through the new communicative approach. The project also resulted in better teamwork through a shared language and working methods to evaluate customer management.
Based on case article in Vectia Explore magazine Spring 2010.
Pfizer is the world’s largest research-based pharmaceutical company.
Vectia Case: Fazer Bakeries
Category leadership in the baking
Starting point
The change from small-scale production to mass production has set challenges for the bakery industry. Bakeries have always been close to the consumer’s life, but as the manufacturers grow it is harder to maintain a real connection with the consumer. Fazer wanted to establish a stronger connection to its consumers and gain better understanding of their processes. Fazer had previously done segmentation from a demographic perspective and now a new and fresh way to look at consumers was desired.
Objective of cooperation
Together with Vectia, Fazer explored different kinds of segmentation perspectives that were tested and trialed until finally product use was chosen to be the main segmentation criteria. Consumer surveys, interviews and Fazer Bakeries’ own data was used to ensure segmentation based on actual facts and figures. Fazer was able to identify six different segments. The structured segmentation process also helped make marketing a solid part of business operations.
Results and business impact
With its new segmentation tools, Fazer gained strategic competence. Fazer Bakeries’ Marketing Director Ismo Nikkola rejoices: “Deeper consumer understanding is likely to have a major influence on the firm’s strategy. The actual benefits of consumer segmentation are more often gained in strategic decision making than in everyday tactical work.” Besides consumer insight, Fazer also received tools to serve clients, retailers and HoReCa sector better. “We believe that by having better consumer segmentation, we can provide much needed consumer insight to retailers as well.”, says Mr. Nikkola.
Based on case article in Vectia Explore magazine Spring 2010.
Fazer Bakeries is the leading bakery company in Finland.
Vectia Case: OP-Pohjola
Engaging youth on their own terms
Starting point
Young adults are as conservative as their parents when it comes to relationships with banks and insurance companies. As a group young adults are extremely heterogenic: demographic variables do not correlate with their banking and insurance needs, and cannot therefore act as a credible platform for creating lasting customer relationships.
Objective of cooperation
With support from Vectia’s tools and methods, a youth concept was created, based on the many first, life-changing situations common for all young adults. Each event is described in detail through the individual’s needs and worries in the light of OP-Pohjola’s offerings and services. Pricing, communications and channels, rewarding and partnership were defined for the concept. Methods, such as personal interviews, to identify the events and the individual’s background and future plans were defined.
Results and business impacts
Youth-specific rewards and flexible, situation-specific services all aim at established customer relationships for years to come. The concept will be piloted with event-based targeted campaigns and media marketing, after which the reaction of young adults will be closely monitored. OP Bank Group’s Senior Vice President Hanna Hartikainen describes the outcome of the project: “Our new concept has been received with interest by our regional cooperative banks. Branch offices have nominated trained personnel to deal exclusively with youth.
Based on case article in Vectia Explore magazine Autumn 2009.
OP-Pohjola isFinland’s largest financial services group.
Vectia Case: Veikkaus
Managing customer experiences is no lottery
Starting point
Embracing digitality has not only created new gaming potential and new revenues, but has also brought new challenges for managing Veikkaus’ customer relationships and experiences across channels. Better insight for creating stronger emotional bonds was needed, because Veikkaus’ customer base began fragmenting into smaller segments and different people took care of different channels and created different customer experiences.
Objective of cooperation
To be able to manage and design aligned multichannel customer experiences, Veikkaus continued its long-lasting cooperation with Vectia. The objective was to create a unified and rewarding customer experience that is not dependent on the channel. To understand the customer experience better, Vectia mapped out situations that influence customers’ experiences. In the next phase, the relevant situations were thoroughly investigated, with the most crucial ones assigned for further development. In the final stage, the desired customer experience in different channels was described and designed.
Results and business impacts
In order to ensure ability to create strong commitment among customers, Vectia defined a strategy for managing multichannel customer experiences. Veikkaus’ Director of Customer Relations and Offerings Ari Aarnihuhta describes the results: “As a result of the project, the customer aspect is more pronounced; everyone believes that a positive customer experience will have a significant effect on our result.” Mr. Aarnihuhta further appraises Vectia. “Vectia is not overly dogmatic. They see the big picture, but are able to adapt it to ensure Veikkaus’ advancement.”
Based on case article in Vectia Explore magazine Autumn 2009
Veikkaus is Finland’s national lottery company.
Vectia Case: YLE
Getting intimate with the public
Starting point
YLE felt the competition of commercial televisions and radio channels and the diverse demand of the public. YLE wanted to serve its clients better and to do so it needed to have insight into the viewers and listeners.
Objective of cooperation
To support YLE, Vectia helped to find the most accurate and relevant segmentation model. The viewers’ relationship to YLE-produced content was found to be the most relevant segmentation criterion. The resulted eight segments were intimately described and to support the implementation, Vectia produced handbooks for YLE personnel.
Results and business impacts
YLE’s Managing Director Mikael Jungner was personally surprised by the wealth and value of information and the quality of the work done. The results will be relevant for several years to come, as views, opinions and attitudes take a long time to change. According to Jungner, Vectia segmentation also provides a systematic way of approaching viewers and listeners plus it provides resources for programme maps as well as for individual programmes.
Based on case article in Vectia Explore magazine Spring 2009
YLE is the Finnish Broadcasting Company
Vectia Case: K-Supermarket
The better-than-average loyalty programme
Starting point
The Finnish retail scene is dominated between three players: Kesko, the S-Group and Tradeka and competition for the customers between these players is fierce. Hence, the companies must find new ways to differentiate themselves in the marketplace to be able to manage the current customer base, protect the most valuable customers and attract new customers.
Objective of cooperation
By building a new reward model for managing the customer base and supporting the core customer promise K-Supermarket is able to increase the customer rewarding value and allow independent entrepreneurs to conduct store-specific activities. The local entrepreneurs are responsible for executing the customer promise with the store’s selection, quality and service and therefore must be closely engaged in and familiar with the reward model. The customer’s total rewarding experience is finalised with store-specific actions and recognition.
Results and business impacts
The customer base analysis revealed that a small base of customers accounted for a major amount of profits, so this segment was especially important to concentrate on. Differentiating the rewarding system by both customer value and customer needs lead to a pull of 30 % for an individual K-Supermarket campaign. Thinking beyond me-too concepts and monetary rewards as well as taking into account strategy and brand elements shows that it is possible to create an innovative and meaningful loyalty concept that is both easy to use for the entrepreneurs and more rewarding to the customer.
Based on case article in Vectia Explore magazine Autumn 2008.
K-Supermarket is a leading Finnish retail chain with the customer promise of being “better-than-average food store”.
The better-than-average loyalty programme:
Together with Vectia the K-Supermarket chain analysed its customer base and created a new reward model that properly reflected the chain’s brand and customer promise. When rewarding loyal customers the model took into account not only purchase volumes but also buying behaviour based on food styles and motivations. Among other things, the programme increased pull for specific campaigns from 5% to 30%.
Vectia Case: TeliaSonera
Target: one-to-one relationships
Starting point
Teliasonera needed radical actions to cut the increasing costs related to fierce competition for new customers and to stop customer base corrupting churn. TeliaSonera’s offering was fragmented and difficult to understand which called for segmentation and customer insight to be able to create an offering based on segment or even on a customer.
Objective of cooperation
With the help of statistical modelling, TeliaSonera identified ten segments to gain insight into existing customers. This insight was deepened with qualitative research and strategies and targets were created for each segment. With the help of Vectia a segment toolbox was created to enable organisation-wide awareness and use of the segmentation model. Each segment was described and given a distinctive face and name and the new names such as Wannabees or Garden Ladies started to be present in all decision making.
Results and business impacts
The most visible result of the segmentation was the revolutionary My Sonera concept. It allows customers to create personal mobile solutions from different service modules and has already showed staggering results. After the segmentation sales to existing customers have multiplied, churn is at an all-time low and the company has been able to gain new customers without having to resort to selling mobile subscriptions at a loss. TeliaSonera is now able to be more proactive and already planning to continue its cooperation with Vectia. Next step is to look further ahead and renew TeliaSonera’s loyalty concept.
Based on case article in Vectia Explore magazine Autumn 2008.
TeliaSonera is the leading telecommunications provider in the Nordic and Baltic countries
Vectia Case: Elisa
Using everyday practices as sources for strategy
Starting point
The challenge for Elisa and other operators alike is to generate growth from the existing customer base. Realising that assumptions about customer needs do not necessarily correspond to reality Elisa decided to apply a method based on observation of and participation in customers’ everyday practices to yield new market insight and growth potential.
Objective of the co-operation
A project called “Everyday practices and Elisa” was applied to gain market rather than customer insight by focusing on everyday lives of Elisa’s customers. Over 430 Elisa employees participated – observing, interviewing, making notes and keeping diaries about customers’ everyday practices. The project yielded over 4000 customer observations that were analysed by Vectia for further use. In addition to consumers and small enterprises, also business consumers were a part of the project.
Results and business impacts
A large number of participating personnel had not previously been in continuous contact with the customers. The educational and engaging project opened the eyes of participants to the everyday lives of Elisa’s customers. A large reserve of new customer-initiated offerings and service ideas resulted from the project, hence Elisa’s offerings roadmap has got a new life that now should be implemented. Among participating customers, and also via press coverage, the project has enhanced the Elisa brand.
Based on case article in Vectia Explore magazine Autumn 2007.
Elisa is a leading Finnish communications and ICT solutions company.
Vectia Case: Luvata
Value beyond material
Starting point
To show customers, owners and personnel that change is under way Luvata made a marketing promise ”Partnership beyond metals” to emphasize the will to be more than a provider of material. Luvata wanted to create solutions and services to the customers, a significant change in thinking, especially in a traditional, production-based industry.
Objective of the co-operation
Luvata Sales System was created based on the idea that systematic customer base management will enhance the shareholder value i.e. improve economic profit. Luvata’s customers were segmented and processes and tools as well as reporting procedures with correct metrics were created. Vectia was additionally involved in creating differentiated offerings and value propositions as well as training sales people to support successful implementation.
Results and business impacts
For a worldwide organisation with presence in more than 13 countries it is important to share a common understanding of goals. With Luvata Sales system, the organisation now has common goals, a common language and a common operations model for Luvata, worldwide. The process yielded valuable information about the difference in the profitability of customers and helped realise the importance of differentiated actions. The key customers now view Luvata as a partner rather than a supplier and are willing to involve Luvata in developing their operational actions. Customer contacts now reach deeper in the organisation and the pilot cases prove that what creates value for the customers, can create added value for Luvata.
Vectia Case: Helsingin Sanomat
Long live the newspaper!
Starting point
Internet and new mobile solutions in addition to proliferation of free distribution news leaflets have made it challenging to retain the consumer’s share of media spending. Helsingin Sanomat had to ascertain how to better meet the different needs of diverse reader segments.
Objective of the co-operation
The solution was to blow apart a monolithic offering and re-construct the elements into a decision-making model. Product-related elements were combined in a new way and service elements were evaluated and de-constructed. Also pricing was taken under evaluation since the price of a subscription for a quality daily newspaper is somewhat high. Opening up the decision-making model with separate elements enabled the planning of offerings to the most promising target groups with a fit to their behaviour and media use.
Results and business impacts
Piloted differentiated offerings have showed promising results. New differentiated offerings are at the planning stage and as the organisation gains knowledge and expertise through results, current readers will also be able to benefit from differentiation. The project brought a better understanding of how to respond to the needs of readers with a relevant offering. It also helped to allocate the resources more accurately and efficiently.
Based on case article in Vectia Explore magazine Autumn 2006.
Helsingin Sanomat is the largest subscription based newspaper in the Nordic region.