CASE STUDY

Pressbyrån Sweden

Pressbyrån introduces frictionless shopping with Cardivation

Pressbyran

BACKGROUND:

Cardivation technology saves customers valuable time at checkouts in Pressbyrån, the Swedish convenience retailer. The new technology is a card innovation deployed in collaboration with Swedbank, one of Europe´s major banks, to do away with paper receipts, gather new insights and automate loyalty.

Situated near subway stations, commuter railway stations and bus terminals, Pressbyrån sells newspapers, cold drinks, snacks and tickets for public transport. Convenience retailing is characterised by high volumes of small transactions and high repeat purchase rates. Transaction speed is very important.

CHALLENGES:

Even the slightest friction in the shopping experience at a convenience store negatively affects sales, profitability and loyalty. Commuters are in a hurry. If they are delayed in-store, many move on without buying. Pressbyrån’s digital strategy addresses three main friction points that delay customers at checkouts: printing paper receipts, scanning loyalty apps on customer smartphones and manual reward redemption:

1) Printing receipts
Swedish retailers are legally obliged to issue receipts even though 95% of Pressbyrån’s customers left before their receipts were printed. Whenever a printer jammed or ran out of paper, the till could not process any sales until the printer was working again. In spite of having the latest printers, customers were still delayed and sales were lost.

2) Loyalty capture
Pressbyrån’s rewards scheme was a digital version of the stamp card concept. Instead of collecting loyalty stamps on paper cards, customers collected stamps in loyalty apps on their smartphones. Customers were burdened with tracking their own loyalty purchases and Pressbyrån had no granular insights into individual purchasing patterns. Manual scanning wasted time at checkouts and not all transactions were captured.

3) Rewards redemption
The rewards scheme used a simple one-size-fits all approach to rewarding customers. Pressbyrån lacked the ability to intelligently automate and individualise rewards based on individual shopping habits. Customers had to manually redeem completed stamp cards to get generic rewards, causing delays at till points.

SOLUTIONS:

1) Digital Receipts
After a simple one-time registration in Cardivation’s central phonebook, customers don’t need to wait for paper receipts to print. They just pay and walk away. During registration, customers select whether to receive receipts by email or to have them stored online for up to seven years. This is very useful for aftersales service where warranties are involved, which is not the case at Pressbyrån.

2) Customer Insights
When Pressbyrån deployed Cardivation, the marketing department instantly saw the complete purchasing patterns of every bank card via its data feed, also known as an API. Customers do not need to scan their loyalty apps because the patent-pending technology automatically and securely links every transaction to the card that pays. The insights comply with European data privacy laws (PCI) and give Pressbyrån a competitive advantage in supplier negotiations.

3) Card-free Loyalty
Once a customer registers a payment card, it is linked to the loyalty scheme. They don’t need a loyalty app on their phones or a separate loyalty card. Cardivation recognises the bank card and automatically sends every transaction to the loyalty scheme for the customer, cutting out scanning. For the first time, Pressbyrån is able to individualise and automate customer communication, offers and rewards based on personal purchasing patterns.

CONCLUSION:

By deploying Cardivation, Pressbyrån has addressed the three main friction points that delayed customers at checkouts but it has also gained a wealth of new insights into individual shopping patterns.

Cardivation is powerful and seamlessly integrated, yet quick and simple to deploy. All Pressbyrån needed was a relatively small overnight software update to PIN entry devices. Swedbank did this centrally with no disruption to Pressbyrån’s existing computer systems or sales.

RESULTS:

Due to a significant reduction in average transaction time, franchisees can serve more customers per hour, which directly improves bottom line profitability of retail outlets.

The Reitan Group operates Pressbyrån and 7-Eleven brands across the Nordic countries. After successful deployment of Cardivation at Pressbyrån, the services were extended to 7-Eleven.

Request information
Contact CNS