This document summarizes a presentation given by Yvonne Miller from Migros about their social media strategy and crowdsourcing platform Migipedia. Migros is the largest retailer in Switzerland, operating as a cooperative with no shareholders. Through Migipedia, Migros involves customers in product development by collecting ideas, testing prototypes, and having customers vote on new products. This allows Migros to better understand customer needs and launch more successful products. The benefits for customers are the opportunity to help create new products and gain behind-the-scenes information. For Migros, benefits include innovative products, insights into customers, and supporting sales.

1. Hier steht ein Bild randabfallend.
Wenn kein Bild vorhanden ist, bitte Folie 2 benutzen.
Social Media at Migros: How to help customers help you
Yvonne Miller, Migros
October 14, 2014
Migros Genossenschaftsbund | CorpComm MGB | Retail Summit Belgrade 2014

5. Who is Migros?
Migros Genossenschaftsbund | CorpComm MGB | Retail Summit Belgrade 2014

6. Migros
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014
| Seite 6
•LargestSwiss retailer
•Cooperative
•1m customersper day
•94’000 employees
•~ 600 branches
•CHF 26 billionsturnover
•90% ownbrands
•60’000 commodities(supermarket)
•Threelanguages
•www.migros.ch
Switzerland: population of 8m

7. A few words (or images) about myself
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014
| Seite 7

8. •Who is Migros?
•What distinguishes Migros from other retailers?
•Migros today: The digital age
•Social communication
•Who is in charge?
•Is there a social media strategy?
•Social media beyond marketing
•What is Migipedia?
•Discussion
Agenda
| Seite 8
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

11. What distinguishes Migros from other retailers?
| Seite 11

13. •Migros is a cooperative built of 10 regional cooperatives.
•A large part of the Swiss population are members/owners of the Migros cooperative.
•No shareholders. Profit is reinvested in Migros.
Difference 1: Migros is a cooperative
| Seite 13
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

14. •Migros contributes 1% of its turnover to projects in sectors of culture, society, education and leisure. Every year.
•Its institutions, projects and activities make it possible for the general public to have access to cultural and social services.
Difference 2: Culture percentage
| Seite 14
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

15. Difference 3: Migros is a historic brand
| Seite 15
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

16. Difference 4: Migros is a love brand
| Seite 16
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

17. Difference 5: Migros has its own products and industries| Seite 17
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

18. Difference 6: 3 languages
| Seite 18Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

19. Difference 7: no alcohol, no cigarettes
| Seite 19
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

20. Migros Today: The Digital Age
| Seite 20

27. Social Communication: Migros belongs to the customers
| Seite 27

28. Migros’ Social Media Channels
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

29. Who is in charge?
| Seite 29

30. Thematische Aufteilung
Migros-Genossenschafts-Bund | Corpoarte Communications | Abschlusstag CAS Social Media Management

31. Team Online Communications & Community Management
| Seite 31
Online Communications & Community Mgt.
Corporate Communications
Marketing
PIM
Product Managers
AgenciesBrand Management
Issue Mgt. & Sustainability
Customer Service
Migros Industries
Regional cooperatives
Media Mgt.

32. Is there a «Social Media Strategy»?
| Seite 32

33. Social is an integral part of Migros’
-marketing mix
-media mix
-communication mix
-support mix
-product development
Social media is ingrained in most of the company’s processes, campaigns etc.
Is there a social strategy at Migros?
| Seite 33

34. Objectives of Social Media at Migros
| Seite 34
Objectives
ExternalObjectivesInternal Objectives
1
2
3
4
ImproveMigros’ imageAssist consumers’ buyingprocess
•Support salespromotion
•Support customerservice(before/during/after sale)
•Customer retentionImproveMigros’ availabilityforconsumers
•Beavailablewhereyourcustomeris. Lethimchoosewhereandwhentocontactyou.
Generateinsights& manage issues
•Collectandreportconsumerneedsandrequests
•Improveproductrangeandservice
•Identifytrends
•Identifyopportunitiesandrisks
•See Migros throughtheeyesoftheconsumers
•Getinstant feedbacks

35. •Number of Facebook fans is not the ultimate objective anymore
•Without media budget for every post the organic reach is very verylow
Number of Facebook-Fans. An arguable objective.
| Seite 35

36. Targeting Groups on Facebook
| Seite 36
15 years
to
70 yearsAll Swiss Facebook Users
Migros Maniacs
Sustainability
Digital Moms
Migros

37. Social Media Beyond Marketing
| Seite 37

38. How to help customers help you: Recalls of products
| Seite 38

39. How to help customers help you: Spam or Phishing
| Seite 39
•Fakee-mailsentbya fake Migros address
•Fakemail askingrecipientstopayan invoiceforan orderat Migros
•Customers startedaskingusifthee-mailwas real
•About70 complaintsonline in 1h
•Media release
•Twitter, Facebook, G+

40. Migros-Genossenschafts-Bund | Corporate Communications | Kommunikation M-Industrie
| Seite 40

42. What is Migipedia? www.migipedia.ch

43. 17.10.2014| Seite 43
Launch-Spot: «Migipedia –The place for your opinion»
Source: http://bit.ly/migipedia
Year: 2010

46. | Seite 46What is Migipedia?
An online platform for
engagement and innovation.
Specially designed by Migros for customers of Migros.

47. | Seite 47
And what can I do there?
-Shareand read opinionsabout Migros products
-Search, rate, comment, improve, design, develop, suggest and test products
-Vote on new products and on what products should again be available at Migros
-Get to know background information about products and Migros itself.
You can co-create Migros and its variety of goods

48. What you can do on Migipedia
Take part in decision-making

49. New registrations
80
new registered users per day
Ratings ofproducts
28’300
ratings of products
51’300 comments on products
Products
10’500
products on migipedia.chGender balance
2/3 female1/3 male
VisitsCommunity

50. “If you want to have good ideas you must have many ideas.” Linus Pauling (1901 -1994) US-American. chemist und Nobel prize winner
Seite 50

51. How to know what customers want?
17.10.2014| Seite 51Listen to what customers wish for or what they would improve or suggest
Let customers create new ideas and products
Ask customers what they want and let them decide between some options

52. Listen: Passive Crowdsourcing
| Seite 52

53. How to know what they want? Listen to your customers
17.10.2014| Seite 53

54. New and better(?) quality
17.10.2014| Seite 54

56. But the customers didn’t like it
17.10.2014| Seite 56

57. Communication to community after 30 daysDecision: back to «old» quality after 20 days
Automatic report to product manager
480 negative feedbacks within 10 days

58. Migros Ice Tea in PET-Bottles
17.10.2014| Seite 58

59. The customers’ idea works!
17.10.2014| Seite 59
+450%

60. Ask: Polls
| Seite 60

61. How to know what customers want?
17.10.2014| Seite 61
Listen to what customers wish for or what they would improve or suggest
Let customers create new ideas and products
Ask customers what they want and let them decide between options

62. How to know what customers want? Ask them.
| Seite 62

63. Let create: Active Crowdsourcings
| Seite 63

64. How to know what customers want?
17.10.2014| Seite 64
Listen to what customers wish for or what they would improve or suggest
Let customers create new ideas and products
Ask customers what they want and let them decide between options

65. Wanted: New Toothpaste
| Seite 65

66. Collect, select and verify the customers’ ideas (online)
Migros-Genossenschafts-Bund | CorpCommMGB | Ostschweizer Innovationstagung, St.Gallen, 7. Mai 2014
| Seite 66

67. Prototypes produced by Migros Industry: Offline with Mibelle
| Seite 67

68. Test: Offline with Migipedia users
| Seite 68

69. Evaluate: Offline with Migipedia users
| Seite 69

70. Test and evaluate: Offline with Migipedia users
| Seite 70

71. Online-Poll 1: Which toothpaste would you like to buy at Migros?
| Seite 71

72. Online Poll 2: Choose between two designs
| Seite 72

73. The Winner!
| Seite 73

77. Good sales figures
Number of customers significantly higher than the benchmark (benchmark = comparable limited editions)
Does it pay off?
| Seite 77

78. One year later: reintroduction of the product!
| Seite 78

79. Poll/Voting
IdeaWorkshop
Call forideas
TastingEvent
AnnouncetheWinner
Limited or StandardHow to plan (active) crowdsourcings
Launch ofProduct/ PR

80. Revenue
Total revenue with Migipedia products:
CHF 40m
Crowdsourcings
18 Crowdsourcings
21 Polls/Votings
Media exposurei.e. Döner Büx: PR Value CHF 500’000
Do crowdsourcings and polls pay off?

81. Migipedia: What is the customers’ benefit?
| Seite 81

82. Migros-Genossenschafts-Bund | CorpCommMGB | Praxisreferat SIB I 2013

83. | Seite 83
Migros Genossenschaftsbund | CorpCommMGB | Retail SummitBelgrade2014

84. Migipedia: What is the customers’ benefit?
New products that he can co- create
Small incentives
Background information / Look behind the scenes
Purchasing tips
Individual answers to individual questions
Product tests / Sample products
Customer becomes influencer

85. What is the customers’ benefit?

86. Migipedia: What is the benefit for Migros?
| Seite 86

87. Migipedia: What is the benefit for Migros?
Support of innovative image
Get to know the customer
Product range optimaziationRecommendations
Support & Dialogue
Storytelling
Help in the buying process: on- & offline
Credibility

88. Questions?
| Seite 88

89. Thank you! Hvala! Danke!
Yvonne Miller
yvonne.miller@mgb.ch
| Seite 89