Introduction

In this case study, we will take a look at Emplate's client, Næstved Storcenter. We will discover how they reached their annual performance targets in just 4 months, by focusing on creating great customer experiences.

Næstved Storcenter is located in the Danish town of Næstved and is the largest shopping center in Southern Zealand, with approx. 70 stores. It is owned by BlackRock and asset managed by CBRE. As we will see in this case study, both BlackRock and CBRE have been delighted by the results of their Emplate app.

Blackrock & CBRE had very clear ambitions for the center. Most importantly, they wanted to go "all-in" on the digitalization of the center and offer their customers a broader experience than simply shopping. Furthermore, they wanted to place a greater focus on creating experiences for their customers and position themselves as the heart of the city.

Ambitious goals

"Beyond increasing footfall, what we wanted at Næstved Storcenter, was to create a closer relationship to our customers and offer them something beyond just shopping. This is because we believe that, in the long run, great experiences are what makes customer visit us again and again."

Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

Prior to introducing their customized Emplate app, Næstved Storcenter operated a "Shop Club" for many years. In "Shop Club", customers were rewarded when they spent a certain amount in the shopping center. The problem with the program was that it only rewarded customers for purchases and did not create any ability to learn and improve. This was not in-line with their focus of creating great experiences beyond shopping and rewarding their customers for their loyalty. Additionally, the "Shop Club" program wasn't "user friendly" for either customers and the shopping center's management.

Due to the issues with "Shop Club", Næstved Storcenter, decided to look for a new loyalty program and chose Emplate, due to our proven track record with other similar centers.

Næstved Storcenter, required a complete and comprehensive digital transformation. Additionally, they also wanted to increase their competitive edge and campaign accuracy, by getting to know their customers better, via data analysis. Within their Emplate platform, they have access to a considerable amount of data regarding their customers, packaged together, in a way, that makes this information clear and easy to utilize. It is this data that helps them understand, not only who their customers are, but what motivates them to visit their center more frequently.

Before launch, they mapped out their key targets for the app:-

• Increase  footfall and average dwell time.

• Increase customers lifetime value and in that way optimize their marketing resources.

• Offer customers "more than just shopping" through experiences and rewards.

• Gain more insights into customers motivations and preferences.

• Gain 10.000 downloads within the first 12 months.

With clearly defined goals, Næstved Storcenter moved on to preparing for the launch of their new loyalty app.

Preparing for launch

"It was important to us to give the app a two pillar foundation; an advantageous loyalty program, beyond the usual, as well as relevant content from the stores, so there's always something new to entice the customers."

Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

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Critical to achieving their target of creating a new digital marketing channel, was to have their tenants also communicating directly with their customers. They therefore, placed a great deal of focus on great onboarding of their tenants, so they feel comfortable and empowered, to create valuable content for their customers. Together with Emplate's customer success team, the onboarding and ongoing relationship with their tenants, has proven to be a real asset for the center. Nanna Larsen, Marketing Manager at Næstved Storcenter explains:-

"We have been very aware that launching and marketing app, calls for something else (and more) than a campaign centered around brand awareness. In part, because we need customers to give their permission and download a app they don't know, and in part because it needs to be very clear exactly what they gain from doing so."

Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

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A successful launch

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They also knew that they had to find a good way to transfer customers from their old loyalty program to the new app. The app's launch was therefore rolled out in two stages. Stage 1 was a pre-launch for customers in their existing loyalty program and stage 2 was the general launch.

During the stage 1, existing loyalty club members were offered to have their score transferred into points in the new app, as well as an exclusive prize they could redeem, if they transferred within the first 2 months. Despite the database of members stretching back several years, with many members having been inactive for years, 83,6 % of members were converted within the first 20 days.

With the success of the first stage, it was time for their stage 2 launch. Here, they focused on a cross-media marketing approach.

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"We undertook a comprehensive marketing campaign for the app, with a cross-media approach, using both traditional and digital media in order to penetrate more target groups from different angles. We also focused on creating interesting touch points in the mall, where customers would naturally be met by the app-messages while shopping."

Nanna Larsen, Marketing Manager, Næstved Storcenter

Their cross-media strategy, meant they could reach customer segments, that they wouldn't have been able to reach digitally. Furthermore, through a collaboration with an influencer, they also showed customers just how convenient and easy the app is to use, as part of the Næstved Storcenter experience.

Their great marketing efforts and the enticing welcome rewards in the app, meant that the launch was a massive success. In the results chapter, we have a closer look what they have achieved to date.
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Creating experiences through loyalty

"We wanted to give our customers the very best experience, and spoil them, while asking for less in return. We wanted to offer a loyalty program that was for everyone, not just those spending money in the shops. Both were made possible with Emplate, as the platform made the user experience very intuitive, for both staff and customers, as well as, giving us the option to reward customers simply for visiting us. That is why focusing so heavily on loyalty is a conscious choice."

Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

Næstved Storcenter's mantra is "Meget mere end shopping" (More than just shopping) and this is clear by the special attention they're giving their loyalty program.

With their focus on providing great customer experiences, Næstved Storcenter want to ensure there are always rewards that cater to the different customer segments. These rewards are also regularly updated to keep customers engaged and stimulated.

With this in mind, they launched their Næstved Storcenter's "Reward of the month". Working closely with their stores and using their considerable knowledge about their customers, they offer new rewards every month, that they know will be well received by the app users. The concept is clear and gives customers something to look forward to every month, nurturing customer loyalty.
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Another great loyalty success for Næstved Storcenter has been their vending machine. Customers use them simply by redeeming a reward in the app. These vending machines serve 2 major functions:-

1. To offer great and convenient refreshments, enhancing the customer experience.
2. To create awareness of the loyalty app an the benefits it offers at the center itself.

It has been no surprise that the customers at the shopping center love the rewards offered, with a high number of redemptions and positive feedback, both from customers and the stores. The rewards, although often small in value, really help customers feel valued by the center and remunerated for their loyalty.

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Another regular campaign they ran, based on excellent past results is, "Få T-rexen til at brøle" (0) point (Dino Days). This is an interactive dinosaur display, focused at providing exciting experiences for customers, particularly those with small children. They could have just made it so the dinosaurs would roar when you pushed a button. However, instead they are using this as an opportunity to offer customers who are using their app something extra. This, in turn, pays off by them rewarding their loyal customers and getting access to the data they need to increase their impact even further.

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Results after 6 months

From the start, Næstved Storcenter have been very active and innovate with their loyalty app, and it is paying off.

Let us have a closer look at what results they've achieved during the first 6 months post launch:-

• 12.000 total downloads
• 5.147 active users on avg. each month
• 318 post by tenants on avg. each

These numbers tell a great story. The impressive amount of downloads has also been matched with a lot of active users each month. This high proportion of active users is maintained through all the relevant content delivered by the tenants, alongside the center's own campaigns and events.

This is a strong combination, which leads to great results, that ultimately feed off each other and keep growing in unison.

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As we can see above, there was been strong and sustained growth for Næstved Storcenter, all the way from their exciting launch, through the first 6 months and now beyond. As you can see, their goal for 10,000 downloads within the first year, was surpassed during the first 4 months, allowing them to rethink and set even more ambitious growth targets.

Within this first period, Næstved Storcenter has managed to get 12,000 customers to download the app. Indeed, they are now adding around 500 news app users every few days. The entire town of Næstved, has a total population of 44,000. This means that a number equivalent to a quarter of Næstved's population, has already actively chosen to download Næstved Storcenter's app, within the first 6 months since launch. This highlights just how successful Næstved Storcenter has been in engaging their customers.

Impactful loyalty with a high ROI

In order for results to make an impact, they not only have to be significant, but also provide a great ROI.

Let's have a look at a most popular reward there's been in Næstved Storcenter's app, and compare the costs to the results:

In the 2 weeks before Mother's Day, Næstved Storcenter held a competition. The cost of entering the competition was just 10 loyalty points and the winner would get a 1,000 DKK (135 EUR) gift card to the shopping center.

Customers earn loyalty points for completing different actions, with the most popular being just visiting the mall, which earns customers 10 loyalty points. This means it would cost a customer 1 visit to the mall to enter. The reward cost Næstved Storcenter 1,000 DKK (135 EUR) and 1,642 customers participated.

If we equate this to cost per visit, each visit cost Næstved Storcenter 0.60 DKK (0.08 EUR).

Compared to the impact of traditional shopping center marketing, these results are very impressive and of course can also be more accurately measured. This is without even factoring in the data and insights Næstved Storcenter gains access to through the loyalty app, which helps them learn and improve further.

The next step for Næstved Storcenter

"Our forward goal is to continue the excellent growth. Our download numbers are steadily climbing and so our work will be focused on keeping all these customers and having them use the app regularly. We will do this by creating even more incentives to visit Næstved Storcenter and bring the app into play in new, creative way."

‍Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

Now, Næstved Storcenter are busy considering what other ways they can bring the app into play to create even more and better customer experience. With the data and insights they can access through the app, they will continue to know their customers in greater detail, allowing them to adjust and serve them with the very best experiences.

"It has been, and still is, an absolute pleasure to work with Emplate. They've had our back all the way from the early strategic considerations, to the concept has been realised and ongoing feedback and support. This has, without a doubt, been a key factor in ensuring our app has had such an great start."

Nanna Larsen, Marketing Manager, CBRE/Næstved Storcenter

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If you're interested in learning more about the effectiveness of app based loyalty, book a demo today.