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- 40:50 min

Interview

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Creative Ways to Reach Grocery Customers with Finland’s Largest Retailer

📍New York, USA

In this interview, Paula had the opportunity to chat with Lauri Toivonen, the CMO of SOK, Finland’s largest retail group, overseeing a diverse portfolio of brands including supermarkets, department stores, service stations, and more. SOK’s influence extends across a nation of just 5.5 million people, boasting an impressive 47% market share in the grocery sector. Perhaps even more astonishing is the fact that a staggering 78% of Finnish households are loyal SOK members.

Lauri shared insights into SOK’s unique customer-owned co-op structure, emphasizing how it brings an added layer to their management system. With 19 regional co-ops that own and operate various business concepts, SOK remains deeply embedded in the communities it serves. This customer-centric approach aligns with their loyalty system, which rewards customers with real cashback bonuses, fostering a strong bond between customers and the brand.

Transitioning from the agency world to a retail giant like SOK may seem like a significant leap, but Lauri highlighted how his agency experience, characterized by diverse clients and high-paced problem-solving, prepared him for the corporate environment. He stressed the need for more professionals to move back and forth between agencies and corporations to encourage diversity and fresh perspectives.

One of Lauri’s key achievements at SOK is the company’s commitment to customer data privacy. They launched a campaign emphasizing that customers own their data and that SOK uses it to provide better services, not to exploit or sell it to third parties. Their loyalty app enables customers to view their spending behavior transparently, offering personalized experiences without crossing the line into creepiness.

The discussion also touched upon the significance of personalization in marketing. Lauri emphasized that while personalization can enhance customer experiences, it should not be overdone, as it can turn customers away if it feels invasive. Instead, companies should focus on providing better services and using data to complement, not dominate, their marketing strategies.

Lauri shared two remarkable case studies that exemplify SOK’s innovative approach. The “Midsummer Belt” campaign, which showcased a 24/7 supermarket conveyor belt in real-time during the Finnish midsummer celebrations, became a social media sensation, demonstrating the power of thinking outside the box and leveraging cultural events.

Another case study highlighted Alepa’s Block Wish service, an innovative chatbot-driven solution that allows customers to request products they want to see on store shelves. This approach transformed Alepa into a beloved neighborhood store and encouraged customer participation, including memes showcasing their unique purchases.

Lauri’s perspective on risk-taking and innovation was a recurring theme. He emphasized the importance of not fearing seemingly “stupid” ideas, as they often lead to the most significant successes. Embracing change, fostering a culture of creativity, and being open to diverse perspectives were all key factors in SOK’s journey towards becoming Finland’s largest retailer.

In conclusion, Lauri Toivonen’s insights into SOK’s journey and his personal experiences offer valuable lessons for marketers and leaders seeking to navigate the ever-evolving retail landscape. SOK’s customer-centric approach, commitment to data privacy, and willingness to take creative risks have propelled it to success in a competitive market.

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