Mark Chaudhry, Head of Customer Data Services, Coop Denmark

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2. © 2016 Tealium Inc. All rights reserved.
Mark J. Chaudhry
Head of Customer Data Services, Coop Denmark
Digital Transformation in
Retail

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Most important in
digital transformation…
people

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Most important in Coop’s
digital transformation…
individual retail consumer

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Most important in Coop’s
digital transformation…
mindset, vision, leadership
Coop Denmark’s CEO,
Peter Hoegsted

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Most important in Coop’s
digital transformation…
collaboration in innovation

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Most important in Coop’s
digital transformation…
strategic partners

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Coop Denmark
Coop’s company name is an abbreviation of co-operative.
A co-operative is an organisation owned by its members.
The main purpose is to satisfy the needs of the members
– provide the most benefit – not to maximise profit for
shareholders.
The World’s first co-operative was founded in 1844 in England (weavers in Rochdale north
of Manchester – buying sugar, flour and butter in bulk at a volume discount).

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Biggest
retailer in Denmark
Coop Denmark sells mostCoop Denmark
1,200 + 2 + 1
stores + web shops + bank
38%
market share
1/3
of all food
40,000
employees
=
7 billion
turnover€ 10%
employed @ Coop
1.5
million members
50%
of all ecology
103 million
beers

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Mark J. Chaudhry
Head of Customer Data Services, Coop Denmark
• Marketing / digital start-ups (1998 to 2012).
• Top line growth innovation – Program Management (logistics)
@ Damco A.P. Moeller Maersk (2013 to 2014).
• Service Owner / Business Relationship Manager
@ Coop Denmark (2014 to 2015)
• Head of Customer Data Services
@ Coop Denmark (2016 -
• Executive MBA, MMT (Master in Management of Technology)
(innovation).
• Pretotyping (http://www.pretotypelabs.com/)

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Customer Data Services
 Facilitate the development and execution of
Coop’s customer data strategy
 Define and collect data and act on and evaluate
information about individual retail consumers
 Understand the needs / preferences of the
individual retail consumers
 Enable personalised, omni-channel customer experiences
 Enable 1:1 relationships / loyalty between individual retail
consumers and Coop Denmark
 Pretotyping (innovation – “very early market validation”)

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Challenges for Coop Denmark
Obstacles to Customer Centricity
Capabilities
Strategy
StructurePeople
ProcessesRewards
Disconnect between corporate strategy
and autonomous organisational behaviour
resulting in sub optimisation.
Heavy and slow innovation process
resulting in sub optimisation.
Wrong mindset:
“Who owns the customer”?
Result: Sub optimisation.
Organised by line and staff.
Functional silos
resulting in sub optimisation.
Different and not transparent
reward systems
resulting in sub optimisation.
Not systematic cross functional
collaboration resulting in
sub optimisation.

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Challenges for Coop Denmark
Obstacles to Customer Centricity
Capabilities
Strategy
StructurePeople
ProcessesRewards
Data in silos
Chaos at the data layer
People in silos
Chaos in the innovation process
Poor collaboration

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Coop CRM / Marketing Cloud

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Personalized Display Advertisement
More individually relevant
membership offers in banners on
external websites
will increase conversion rates
resulting in higher profit in
SuperBrugsen stores.
Deliverables
1. Technological Proof of Concept.
2. Market validation / ROI
Macro conversion: Members
bought more in the stores of the
products they where exposed to.

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Personalized Display Advertisement
Normal display advertisement (before)
• 50-150 products on offer (those from the printed special offers)
• Someone selects 16 products (gut feeling)
• Segment bought and served to via display network (Adform)
• 4-5 impressions

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3 years
…so no market validation / ROI
No technological
proof of concept …
+++ €

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Personalised Display Advertisement
Offline purchase history, e-mail address,
algorithm for product relevance (weight)
• 440,000 in segment
• 60,000 identified
• 2 x 30,000 split
• 30,000 in control
• 3 weeks!

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We
individual
retail
consumers

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Thank you!

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