What would you say if your retailer showed you your purchase data? Even though giants like Facebook have been accused of using customer data and breaching privacy, when done right, customer logs and purchase data can help businesses boost their sales.
Finnish retail and service chain S-Group collected purchase data over years, and shared it with consumers themselves, leading to an increase in their revenue by nearly 14%.
S-Group’s initiative to compile customer data
S-Group had collected consumer data for decades, with more than 60% of the Finnish being its loyal customers. The co-operative retail chain has more than 1.800 outlets in Finland along with many subsidiaries, so the extensive lump sum of data provided some interesting statistics and figures.
Back in 2019, S-Group had launched a carbon footprint calculator for its customers, and in 2020 a nutrition calculator.
The company added this data to Omat Ostot, the “My Purchases” smartphone app and made it available for its customers throughout the country.
Shopping habits of a consumer, their carbon footprint, domestic purchases and nutritional information can be accessed here with ease. The simple, uncomplicated user interface only makes it better. This data can be compared with a wider database, allowing people to understand how their data looks compared to that of others, thus either acknowledging their choices, or encouraging them to make better ones.
How did it turn out?
While we may think that consumers are offended when we use their data, it is not always the case. When used to better their experience, it was welcomed by the residents of the happiest country.
Viewing their own shopping patterns, nutritional choices and carbon footprint, users were able to make informed decisions.
More than half a billion store visits were logged through the app, and the brand’s revenue increased by 13.9%! 10% of the Finnish continued to use the app, 45% admitting they had changed their shopping behavior.
This is not the first time a company has used user data, but S-Group’s innovative approach to compiling and sharing data with its users stands class apart from our mainstream retailers. This is because, with Omat Ostot, consumers hardly have to go back to their carts every few seconds to calculate their gains and losses.
S-Group’s application has allowed the consumer of today to be easily conscious.
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