Everybody knows that the Customer Experience is the heart of the business – but what is the actual impact?Read more
Løvbjerg’s ambition was to increase customer satisfaction in the highly competetive retail market.
Customer research is an important strategic and operational tool for the continued development of the Løvbjerg supermarket store concept.
“We wanted certainty and some specific indiciations of how to develop the chain in the right direction. And we could only find out what we had to do by asking our customers,” says Søren Clausen, executive secretary at Løvbjerg Supermarked A/S.
Working with ag analytics, the supermarket chain carried out a customer satisfaction survey for each of its twelve stores in Jutland and Funen.
Clarity on how customers view the chain
Løvbjerg Supermarked and ag analytics created a survey, that was given to one in ten customers who passed through the checkout in the twelve stores. Competitions and prizes were used to motivate customers to complete the survey. Customers were asked about their impression of the store, goods, price level, employees, supermarket offer leaflets, fresh meat department, fruit and vegetable department, and overall impression of Løvbjerg.
ag analytics then created the overall report for the Løvbjerg chain, as well as a report for each individual store, using the responses as well as the many customer comments. With a response rate of 38 percent, the supermarket chain had a clear overview of how they were perceived by their customers. A total of 84 percent of customers were very satisfied.
Specific focus areas
Despite the high levels of customer satisfaction, there was still potential for improvement. Based on the results for the individual stores, the store manager and employees came up with three focus areas that would improve customer satisfaction over the following six months. By doing this, the entire organization and its 560 employees would be involved in ensuring that even more customers were satisfied when they did their shopping at Løvbjerg.
The results showed that there were two focus areas the chain should address: price level and the fresh meat section. Firstly, the customers did not perceive Løvbjerg Supermarked as a discount chain, in spite of the fact that the prices were as low as discount stores. Secondly, customers wanted recipes and guidance from the store butchers on how to use the different cuts of meat.
In the future, Løvbjerg Supermarked will carry out regular customer surveys to track the development of customer satisfaction.
“The customer satisfaction research has been a good investment and we have achieved a lot with it. Of course it’s not free, but good input from our customers is invaluable. And we don’t need to implement that many changes before it has paid for itself,” says Søren Clausen.
“It’s important to see the results of this kind of customer research as comprehensive and use them in our future work on an operational level. This research has been without a doubt also an important strategic tool and a great source of inspiration for our strategy seminar,” he concludes.