“I have no doubt that much of our growth is due to increased loyalty from members.”

Why did you start a loyalty program?

We’ve actually had some form of a loyalty program for many years – even before Diller – because we were curious to see if there was something there that could contribute to increased customer loyalty. The first few years this was a “side job” for us, but gradually we became more curious about the possibilities for increased purchase frequency and loyalty. We wanted to tackle this a bit more properly.

We quickly entered into dialogue with Diller, mainly because the platform seemed like a very good, easy-to use and cost-effective software. We got started in the fall of 2023.

What do you see as the main benefits of a loyalty program?

It’s purchase frequency and the opportunity to communicate more personally with what we call “our friends” – the members. In the future, it will be very important to have communication with those who prefer to shop with you, especially in light of GDPR and privacy legislation.

Third-party channels are becoming less and less effective, and we see that it will be necessary in the future to own the dialogue with customers.

What sales results have you seen so far?

We have had good growth this year, and this is due to a combination of marketing, great effort in physical stores, and a good product range. However, when we look closer at the numbers, we also see that members – our friends – have higher average purchases and higher purchase frequency.

A large proportion of those who shop are members of the loyalty program. I have no doubt that much of the growth is due to increased loyalty from members. I am sure it’s an important factor.

We have done various tests, including SMS marketing within limited geographic areas, so that we can track data. We see a very good correlation between sending SMS and response in terms of purchases. Members of our loyalty program respond well to a message on SMS.

It is more difficult to pinpoint results from traditional marketing, but for local SMS campaigns, we see direct sales results. The only sensible consequence of this is that we must have even more members!

Can you tell us about the integration between Diller and Lipscore?

We went live with Lipscore in 2022, and from then on, we received reviews from customers who shopped in the online store, and that was valuable to us. We get reviews on products and some on service. I think Lipscore works very well, always working in the background without any hassle for us. Reviews from the online store worked fine, but since 90% of our sales come from physical stores, we wanted to gather reviews from all our sales outlets.

When we set up Diller, Lipscore and Diller were fully integrated, and this created a major, positive change. From then on, we received feedback on product scores and the shopping experience in stores, which made the number of reviews increase significantly. With Diller all our physical stores were included, and that is incredibly valuable to us.

Reviews from the stores are actively used internally. We post review results on our intranet so that employees can see their own store’s results and compare with others.

How does the integration work?

The integration works seamlessly for us. The sales receipt from Diller goes to Lipscore, and Lipscore sends out a review request to the customer. There’s really just one question, and it takes 5 seconds to answer. It is very important that it is experienced as easy and quick for the customers. We try to make everything as smooth as possible for our customers.

How do you recruit new members?

Recruitment of new members mainly happens in the stores. It is also possible to become a member in the webstore, but passive sales doesn’t work as well as when you talk to people – and that happens in the store.

It is the employees who recruit members, and for them it is important to have a simple, professional system to back them up. The threshold for asking is so much lower when you have a system you trust. Motivation among employees cannot be forced – they must want to do it. It works very well today.

How important is it that Diller is integrated in the POS and online store?

This is very important in terms of lowering the barrier to becoming a member. It is essential that everything is well integrated!

We will soon get started with identification via bank cards, which will make it even easier for everyone. Nothing to remember, nothing that can be forgotten – everything will run by itself. It will be seamless and easy for our customers, and everything will seem professional and simple. We are looking forward to this.

What do you think about the collaboration with Diller and Lipscore?

We are very satisfied with the collaboration with both partners. What’s important to me is that someone picks up the phone when I call or responds to inquiries. Both do this right away, and we haven’t had any “crises.”

What characterizes both organizations is that they have delivered on what was promised in the projects. The map matches the terrain, and this is very important in the collaboration with good suppliers.

What do you envision for the future?

We will be recruiting many more new members!

The next step for us is to further develop the loyalty program with Diller Copilot – the use of artificial intelligence – so that we can segment customers based on their interests, purchase history, and data analysis. This will create an even more positive shopping experience for our customers, and they will receive benefits and offers that they perceive as both good and relevant.

Tailored marketing cannot result in lower purchasing frequency – it’s just not possible. Everyone will receive messages that are relevant to them, and not messages that they perceive as “spam”. Nobody joins a loyalty program without having some form of positive relation to the store or brand, and we want to further strengthen this in the future. It should be really good to be a member with us.