Everybody knows that the Customer Experience is the heart of the business – but what is the actual impact?Read more
In the last couple of years, DLG have had focus on buy up and expansion. The group has gained a significant growth that helps DLG to offer competitive prices and to keep European competitors out of the Danish market. As a part of increased focus on the primary business, DLG has started to work with a concrete customer strategy that aims to map what creates value for the customer and to strengthen a profitable organic growth.
ag analytics was asked to examine what makes DLG differentiating as well at provide precise knowledge about DLG’s potential in relation to existing and new customers. Our analysis showed the following:
- The account manager was the primary reason for customer’s satisfaction. Proactivity and expertise in the sales provided liberty for the customer to focus on agriculture.
- A fluctuated quality on food and fertilizer was a correspondingly source of increasing dissatisfaction. The large uncertainty on the agricultural market demands more than just focus on price
- A clear customer strategy showed a large potential on the existing customer base, thus providing a breeding ground for organic growth
Systematic customer strategy creates organic growth:
The first part of the customer program was to define how DLG creates value for their customers:
- How does DLG contribute to create a better business for each farmer?
- How is DLG concretely a value adding partner?
In the opening faze, ag analytics visited several of DLG’s key customers within pigs, cattle, and cultivation of plants to gain a deeper understanding of how DLG in reality creates value. This was combined with DLG’s own perception of their customer’s preference and most important challenges. The result of the external and internal work was a clear description of how DLG ideally wanted to be perceived in relation to be perceived as value adding and differentiating.
Feedback from 3.500 web interviews among DLG’s customers in Denmark, Sweden and Germany that continuously were followed up by individual account managers, laid the foundation for a strategic prioritizing of resources. Danish agriculture is met with increasing competition from foreign countries and a large pressure not just on prices, but very much on efficiency and productivity as well.
A systematic approach to customer strategy will be a defining factor for the future focus of DLG, who will now put the customer in the center to gain organic growth.
Group vice president Jesper Pagh says: “It is important to state the fact that the research not will be used to point fingers at each other. On the contrary, it is a unique opportunity to do things even better. We have to improve the things we all along want to be better at: To live up to our values and be even more trustworthy, value adding and ambitious towards our customers”.
The DLG group is one of Europe’s largest agriculture associations and today they have about 30.000 Danish farmers as owners. The group’s activities include seeds and fertilizer as well vegetables for catering and retails, electricity, tele communication, sales of potted plants etc.
DLG has an annual turnover on about 59 billion DKK. The DLG group has 7.500 employees of them about 3.000 in Denmark. In total DLG is located in more than 20 countries.
DLG provides farmers with foods from own factories, seed corn, fertilizer, agricultural lime, crop protection, fuel and much more related to the daily operation.
The DLG group is also one of Europe’s largest exporters of barley malt, seed corn, foods and bread grain and rape. In addition DLG is via the group connected to companies involved in processing of vegetable crops.