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Helping Migros Create Value with Customer Data

Driving personalised experiences with a 360-customer view

As the biggest retailer in Switzerland, Migros collects data from millions of customers on a daily basis.

By implementing a one-stop-shop data solution, we helped them engage their customers with personalized shopping experiences, driving loyalty and customer value.

About the Migros Group

Migros is Switzerland’s largest retail company, the biggest supermarket chain, and the largest employer. It is structured in the form of a cooperative federation with more than two million Swiss members – making it a supermarket chain that’s owned by its customers.

Thanks to their strong investment in new technologies and innovation, the group was able to almost double their online sales – from 2 billion CHF in 2018 to 3.7 billion CHF in 2022.

Migros at a glance:

  • over 100.000 employees
  • over 100 companies
  • 10.1 billion CHF in sales (2022)
  • 459 million CHF in profit (2022)

Over the last 10 years, we’ve developed a close partnership with the Migros group by working on a number of their retail brands including:

  • Melectronics
  • Micasa
  • SportX
  • Do it + Garden
  • Bikeworld
  • Migros Services

 

Customer Challenges

Low Quality of Data

Data was being saved and updated manually resulting in outdated or mismatched data.

Fragmented Customer Data

Customer data was stored in silos, making it impossible to unify it or generate insights.

Limited Personalisation

Due to data management practices only limited personalisation options were available.

Further complications came from the existing digital architecture since many systems did not work well together. We needed to find a way for all these solutions to operate as one, increasing marketing effectiveness and making data accessible to everyone in real-time.

The Solution: A customer data management system that provides a complete 360-degree view of the customer and enables personalized communication.

The SAP Customer Data Platform was chosen as the foundation of the new customer data management system. The solution is a market leader when it comes to data unification and consolidation, so was a perfect match for Migros.

The SAP CDP’s strong suite is it’s integration capabilities, as it’s in constant communication with peripheral systems such as the Migros online shops, brick-and-mortar stores, loyalty systems, etc. This allows it to analyze and unify customer data no matter where it is coming from, providing a full omnichannel experience to the customers.

To get the most out of the new setup, we also integrated it with SAP Emarsys – a solution that empowers retailers with personalized marketing automation to improve customer engagement. This means that Migros can shape their communication with each customer based on their demographics and past behavior – all of which is saved within the customer data solution.

Project Highlights

Creating a ‘Single Source of Truth’

  • The main goal of the new customer data management system was to establish a ‘golden record’ within Migros.
  • This serves as a trustworthy single source of truth for customer data within the company, while providing access to everyone who needs it in real-time.
  • As a result, information is always reliable and up to date, breaking down data silos and avoiding confusion, errors, and duplication in customer data.

Complete View of the Customer

  • In the new setup, SAP CDP serves as a one-stop shop for customer data, combining it into a complete 360-degree customer profile.
  • With this, we enabled Migros to unify customer data regarding past purchases (such as top categories or products), behaviors, and demographics.
  • As a result, Migros vastly improved the personalization across all channels while sharing the data with their shopfloor employees to make the overall sales experience more enjoyable for the customer.

Meaningful Customer Engagement

  • By integrating Emarsys, Migros was able to target their customer communication based on specific context or behavior.
  • By using an iterattive approach, we started from a couple of use cases (abandoned carts, birthdays, win-back campaigns, etc.) and then optimized and expanded the scope.
  • When empowered with the CDPs segmentation features, the system was also able to automate targeted marketing campaigns – driving customer loyalty and value. 

Results of the Emarsys ‘Card Abandonment’ Pilot Campaign

During four months (October 2022 – February 2023), Migros piloted using Emarsys to send out automated emails to customers who started their shopping but abandoned their cart before checkout. Here are the results:

emails sent

open rate

conversion rate

revenue in CHF

Dominik Meier | Product Manager CRM/CX Platform, Migros Genossenschafts-Bund

NETCONOMY’s expertise in customer data management (and SAP CDP specifically) was crucial for us, especially in the early days of the implementation project when we were trying to get the best value from it. Together, we are working towards the vision of the Migros Group to engage with our customers as a single entity instead of many separate ones.

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Thomas Ziegler | Chief Customer Officer, NETCONOMY

Our biggest achievement here is the strong connection between offline and online touch points, which helped create a seamless experience. The technology help teams within the store to work more closely and effectively with their customers.

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Tech Stack

  • SAP Customer Data Platform
  • SAP Emarsys
  • SAP Commerce Cloud
  • Google Cloud Platform
  • React-Based Archibald Storefront by NETCONOMY
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