Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Presentation (June 2019)
30 slides from Kesko Oyj Class A's investor presentation, Jun 3, 2019
Slide 1: Digital development in Kesko
Digital development in Kesko Anni Ronkainen, CDO 3.6.2019 1 Digital development in Kesko
Slide 2: Kesko's growth strategy
Kesko’s growth strategy VISION We are the customers' preferred choice and the quality leader in the European trading sector Sustainability and STRATEGIC Profitable Business Quality and Best digital One combating climate FOCUS AREAS growth focus customer orientation services unified K change Grocery
Slide 3: The power of consumers, data and mobile are changing the business
The power of consumers, data and mobile are changing the business Increased consumer Data and AI will Positive customer knowledge and power change businesses experience is crucial significantly in every touch point Mobility Customers Globalization and Marketing are always online platforms are techno
Slide 4: AI, data and analytics are our best friends
AI, data and analytics are our best friends 4 Digital development in Kesko
Slide 5: Our customer loyalty program is a great source of data
Our customer loyalty program is a great source of data 1.5 million 3.6 million 8.3 million 1,800 1.2 million customer encounters K-Plussa customers visits at K Group’s stores at eight feedback from our every day at our stores websites per month countries customers at K Grocery stores and digital ser
Slide 6: K-AI helps and inspires customers
K-AI helps and inspires customers. It supports all our businesses in decision making and improves key processes. K-AI use case examples/key processes Better decisions and efficient • Assortment planning processes by K-AI • Pricing optimization • suggestions • HR processes • estimations • Logistics •
Slide 7: What do we do with the data? More personalized customer experience
What do we do with the data? We create a more personalized customer experience. PERSONALISED BENEFITS PERSONALISED SUGGESTIONS OWN RECIPES (RECOMMENDATIONS) OWN FAVORITES AND PERSONALISED SEARCH RELEVANT CONTENT SMART SHOPPING LIST 7 Digital development in Kesko
Slide 8: K-Ostokset – sharing the data with our customers
K-Ostokset – sharing the data with our customers • K-Ostokset is a new service that allows our customers to track their purchases at K-stores, and helps them understand how those purchases affect their own wellbeing and the world around them • The first service feature tells customers how much Finni
Slide 9: The product information we have offers more possibilities
The product information we have offers even more possibilities for future service development. 9 Digital development in Kesko
Slide 10: Product information offers countless possibilities to benefit customers
Product information offers countless possibilities to benefit our customers and strengthen the customer relationship 10 Digital development in Kesko
Slide 11: The role of e-commerce in K Group
The role of e-commerce in K Group 11 Digital development in Kesko
Slide 12: Different business areas, different approaches to e-commerce
Different business areas, different approaches to e-commerce Grocery trade Building and technical trade Car trade Purchase offline & online Research online, purchase offline & online We measure the value of the customer – not only the value of the channel 12 Digital development in Kesko
Slide 13: E-Commerce in Grocery Trade
E-Commerce in Grocery Trade 13
Slide 14: K's online grocery store model
K’s online grocery store model • Online grocery services as part of K retailers’ business • Emphasis on personalized customer experience – both digital and personal • The biggest selection of grocery products and services for online ordering • The widest network for deliveries and click & collect po
Slide 15: A scalable and adaptive model
A scalable and adaptive model • Expansion to new cities and areas without major initial investments in warehouses etc. • The volume of in-store sales enables a wide range of products without separate warehouses • Fulfilment from store network supports fast and cost-efficient delivery from the neares
Slide 16: Services available to more than 3 million Finns
Services available to more than 3 million Finns • Online grocery services in Click & collect stores and Home delivery stores and 185 K-stores - network their main sales areas their delivery growing fast areas • Click & collect: 166 K-stores / • Home delivery: 113 K-stores • Click & collect services
Slide 17: An omnichannel customer spends more in K grocery stores
An omnichannel customer spends more in K grocery stores 17
Slide 18: Timely deliveries and proactive communication as a key focus area
Timely deliveries and proactive communication as a key focus area • Real-time monitoring of the delivery during the last hour • Proactive customer information in relevant stages of the process • Feedback requested after each delivery • Average 4,5/5 stars • Currently piloting a fast delivery model 1
Slide 19: Our online grocery store growing strong
Our online grocery store growing strong Online grocery sales Monthly sessions in the K-Ruoka online Sales growth 1-4/2019 store site 117% Sales growth 2018 72% NPS 1-4/2019 1/17 7/17 1/18 7/18 1/19 74 1/17 4/17 7/17 10/17 1/18 4/18 7/18 10/18 1/19 4/19 19 Digital development in Kesko
Slide 20: E-Commerce in Building and Technical Trade
E-Commerce in Building and Technical Trade 20
Slide 21: BTT store network and e-commerce services
BTT store network and e-commerce services 133 K-Rauta.fi 56 Onnshop.fi 11 consumer online stores 1 online store for 65 Byggmakker.no professional builders Proff BM Portalen 5 online stores for 25 Onnshop.no technical trade 1a.ee 8 K-Rauta.ee 8 Onnshop.ee Number of stores per chain /country 17 K-Raut
Slide 22: The role of digital solutions will grow in all target groups
The role of digital solutions will grow in all target groups – needs and solutions differ Technical professionals Consumers Seeking for technical information and trusted Looking for inspiration and instructions. expertise – expect omnichannel experience Research online, purchase offline or online. •
Slide 23: Data-driven marketing creates personal experiences
Data-driven marketing creates personal experiences 23 Digital development in Kesko
Slide 24: Our customers' media consumption has changed
Our customers’ media consumption has changed 45% of daily media consumption is digital 65% consume evening papers online (25-44 y/o) Facebook 64% Reach in K-Plussa customers (TV 66%) 24 Digital development in Kesko
Slide 25: A customer experience based on true insight is valuable
A customer experience based on true insight is valuable both to the customer and the company 91% 83% of customers would rather engage with a brand that of customers are willing to share their information understands him/her and is able to offer relevant with the company to gain a personal customer o
Slide 26: Lowered investment in leaflets, grown investment in digital marketing
We have consistently lowered investment in leaflets and grown investment in digital marketing – with good results 26 Digital development in Kesko
Slide 27: We do data-driven marketing even in mass media
We do data-driven marketing even in mass media 27 Digital development in Kesko
Slide 28: The winners of tomorrow master digital services and human encounters
The winners of tomorrow are those who master the combination of highly developed digital services and positive human encounters. 28 Digital development in Kesko
Slide 29: Additional Information
Additional Information Kesko observes a 30-day silent period Q2/2019 half year report 24 July 2019 Materials and events: www.kesko.fi/en/investor Follow us at: twitter.com/Kesko_IR Q3/2019 interim report Contact 24 October 2019 Kia Aejmelaeus VP, Investor Relations Tel: +358 40 765 4616 In addition,
Slide 30: AI
AI