Elgiganten tool for customer satisfaction rating
Elkjøp takes omnichannel retail to the next level

Elkjøp takes omnichannel retail to the next level

For many, omnichannel retail means providing a shopping experience both in stores and online. Electronics retailer Elkjøp is going even further, Julia Paulsen, Director of e-commerce Nordics at Elkjøp Nordic, told the audience at Nordea’s recent ‘Offline to Online’ event.

“Are physical stores still relevant?”

It’s a question Julia Paulsen, Director of e-commerce Nordics at Elkjøp Nordic, often gets, especially after the pandemic turbocharged the migration of consumers online.

Yet if you look at the numbers in retail, omnichannel is the clear answer, Paulsen told the audience at Nordea’s recent Offline to Online event.

“The majority of our customers want to shop both online and offline. So case closed,” she said.

The virtual event brought together business leaders from a range of industries to share how technology and digitalisation are changing business models and opening up new opportunities. Tapping into that online potential is high on the agenda for electronics retailer Elkjøp (also known as Elgiganten and Gigantti).

Julia Paulsen, Director of e-commerce Nordics at Elkjøp Nordic

You need to start with what the customer wants and needs.

Director of e-commerce Nordics, Elkjøp Nordic

From product-centred to customer-centred

Elkjøp reaped numerous awards in 2020 for being the best omnichannel player across a range of industries. However, not resting on its laurels, the company set out to further enhance its shopping experience for customers.

A survey of customers and employees highlighted two areas for improvement: The company needed to go from being product-centred to customer-centred, and instead of dominating by size, it needed to lead by relevance.

“We need to meet you as our customer one-to-one and give you what’s most important for you, not us,” Paulsen said. The solution: an end-to-end omnichannel journey with the customer in the centre.

Next generation retail

For many, omnichannel means providing a shopping experience both in stores and online. Elkjøp is going beyond that definition with its so-called “next generation retail,” revamping its entire backend – both for brick-and-mortar and online shopping.

Data is at the heart of the strategy. Customers can join Elkjøp’s customer club for membership benefits, which allows them to log onto the company’s website for the most relevant shopping experience. With permission, Elkjøp can track user data to send the most relevant offers. For example, if someone has been searching for a dream kitchen, in the future, they will arrive at the kitchen section of the online store when they log on to the site.

“It’s all about how we’re using our data correctly both in our own and paid channels outside to give our customers what they are looking for,” said Paulsen.

It’s all about how we’re using our data correctly both in our own and paid channels outside to give our customers what they are looking for.

Julia Paulsen

Other priorities in Elkjøp’s omnichannel journey

Expanding payment options

“We need to give users many more payment options than they have today,” said Paulsen.

Order status transparency and control

Customers need to be able to clearly track their order status, cancel their orders and reschedule deliveries online.

Last-mile delivery

Paulsen described last-mile delivery, the final step in getting products to the customer’s door, as “extremely important” for e-commerce.

Bringing the in-store experience online

Just weeks after the pandemic hit, Elkjøp launched “live shopping,” allowing online customers to video chat with in-store employees who can answer questions, provide guidance and show products. However, even before the pandemic, the company had been working to bring elements of the in-store experience online.

When Elkjøp’s new platform is fully live, if users search for a product, say a heat pump, online, they will be met with questions in the new user experience, such as, “Is this going to be the main heater of the house?”

“We’re not just pushing you some products that we have. But actually figuring out, by asking questions, what you need,” she said.

‘In-store pickup’ in reverse

Ordering online and picking up in the store is relatively standard fare when it comes to online shopping. What if you could do that the other way around? Imagine finding a great one-day-only deal on a TV while shopping at the mall. You don’t want to miss the bargain, but you also want to clear the purchase with your spouse at home.

Under Elkjøp’s concept, you’ll be able to go into the store, discuss the product with the seller, get the discount and a unique basket ID. Then you can go home, show your spouse, and with the go-ahead, go online, click and buy.

“Here we are talking about truly being omnichannel because it’s all on the customer’s terms. The customer is deciding what to do, and we give it to them,” said Paulsen. “Omni basket – that’s the future.”

She closed by emphasising that omnichannel is not just about making fixes to the store or online experience.

“You need to start with what the customer wants and needs. Here the customer has really come into focus.”

Watch the recording of Julia Paulsen’s presentation, “Behind Elkjøp’s journey to becoming truly omnichannel” (starts at 22:40).

Sign up for the Open Insights newsletter

TAKE ME TO THE SIGN-UP PAGE
Woman Using Virtual Reality Headset

The information provided within this website is intended for background information only. The views and other information provided herein are the current views of Nordea Bank Abp as of the date of publication and are subject to change without notice. The information provided within this website is not an exhaustive description of the described product or the risks related to it, and it should not be relied on as such, nor is it a substitute for the judgement of the recipient.

The information provided within this website is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sale of any financial instrument. The information provided within this website has no regard to the specific investment objectives, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment or credit decision. It is important to note that past performance is not indicative of future results.

Nordea Bank Abp is not and does not purport to be an adviser as to legal, taxation, accounting or regulatory matters in any jurisdiction.

The information provided within this website may not be reproduced, distributed or published for any purpose without the prior written consent from Nordea Bank Abp.

Related articles