Migros Socializes the Money-Saving Experience

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Customer Experience
Customer Experience
Turkey's largest supermarket chain extends business-boosting savings through Facebook, while engaging consumers on an individualized level to promote loyalty and advocacy.
Social and Mobile Effectiveness

Business Boost: Today Migros has more than 230,000 Facebook likes and can track the spending and shopping behavior of 60,000 of those fans.

For many companies, making a splash on the social scene typically results in mere ripples across the puddle. They create network accounts, yet fail to enhance the relationships they'd hoped to strengthen. But, for Migros, Facebook integration has triggered major waves of engagement and newfound loyalty to the brand and its suppliers.

Led by Mustafa Bartin, IT director, and Kina Demirel Beskinazi, Money Club and CRM group manager, Turkey's largest supermarket chain sought to integrate its Money Club customer loyalty program and its budding social presence to provide a consistent, holistic customer experience. With eight million active card users, Migros recognized the opportunity to connect customer preferences and money-saving offers to foster stronger relationships and unyielding loyalty. Before embarking upon this social journey, Migros established three specific goals: be more interactive with customers through social media; announce the benefits, events, and happenings of its loyalty program to customers immediately; and use social media to generate sales for retail operations and suppliers, going beyond "likes" and engagement metrics to create real value for every customer.

While the chain already employed different communication channels, such as SMS, email, kiosks, and direct mail, to reach out to customers both in and out of the stores, social channels offer new possibilities for increased interaction for both Migros and its suppliers. Through these new channels, suppliers can work to retain current customers while attracting new ones, as they are now also able to get the attention of customers before they visit the store. This new platform allows supplier brands to overcome the social obstacles that come from being able to communicate with consumers but not change their shopping behavior. Migros' suppliers now have the opportunity to encourage consumers to try their brands and generate new income.

To create measurable sales results, Migros created an application that links Money Club members' card numbers with their Facebook accounts so the chain can connect its Facebook community with its CRM database in order to glean insight from the customers' current "likes" and preferences. The integration process allowed Migros to use its various other contact channels to promote its Facebook fan page. Migros also sparked immediate social interactions by asking fans to pick their favorite product in the store. These items were then loaded onto each customer's card for free for immediate redemption in-store. This enabled Migros to provide immediate value to consumers and reinforce social's value.

Since its creation, Migros' Facebook fan page has garnered 230,000 likes. Migros has also learned that know that Money Club Facebook fans are 1.5 times more likely to pay the store a visit than the average cardholder and spend 1.5 times more. Facebook also allows the Money Club and CRM department to monitor customer feedback and reply quickly. Facebook has become an integral communication channel, as comments provide great insight, while complaints allow for speedy resolution. Because the entire organization has adopted the drive to offer the best, fastest, most efficient answer for customers, knowing their Money Club ID through the Facebook connection also means representatives can look at the consumer's shopping basket and answer queries more efficiently at the point of contact.

To show the chain listens and cares, Migros asks interactive questions each week to engage its Facebook fans and glean insights into how customers live and what they think. For Ramadan, Migros asked customers which products they would like to earn extra Money Points for, and then arranged for the products to be available directly through their Money Club cards. Migros also set out to turn engagement into sales by trying ideas that offer the chance to combine the online community and its physical stores. For Mother's Day 2012, Money Club encouraged fans to write messages for their mothers. These messages were then printed on every mother's store receipt. The cashiers also received an alert to remind them to tell all mothers of the note that awaits them.

EXPERT OPINION
EXPERT OPINION