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Metro

We have designed a comprehensive project, within the framework of which we have conducted a research measuring consumer behavior, brand recognition, formed a conversion model for supermarkets, and created attraction and retention maps.

METRO is a group of retail companies that operates the third largest retail chain in Europe and the fourth largest one in the world. It was founded in 1964 in Germany.

CLIENT: METRO

FOUNDED: 1964

SPHERE: Retail

REGION: Europe, Asia, Africa

COOPERATION SINCE: 2018

WHAT IF, BY INCREASING THE PRICE BY ONLY 10%, IT AFFECTS THE VOLUME OF SALES AND REDUCES THE NUMBER OF CUSTOMERS?

What objectives did the client have?

A client has approached us to solve several problems:

  • assessment of their position and brand recognition in the market,
  • testing the hypothesis about the dependence of changes in the volume of purchases on the price in the context of specific categories of goods.

“How can just 10% price increase affect sales volume and decrease the number of customers?”

Tasks

  1. To conduct analysis of the popularity and frequency of shopping centers attendance among families in cities with METRO stores.
  2. To analyze customer satisfaction by the following characteristics:
    • stability and attractive price;
    • customer satisfaction with the price of key products;
    • satisfaction with the assortment;
    • discounts and promotions.
  1. Conduct an assessment of purchasing behavior with respect to key products to shopping centers while reducing or increasing prices by 10%.

What kind of research have we made for the client?

We have created a comprehensive project. Within its framework we have conducted an investigation, measuring the following categories:

  • Shopping behavior in the supermarket;
  • Brand recognition;
  • Knowledge of supermarkets with a hint (by name);
  • We have analyzed brand awareness and supermarket attendance;
  • Analyzed brand recognition and visits to METRO by city;
  • Formed a conversion model of supermarkets;
  • We have created maps to attract and retain customers;
  • Determined the choice of a supermarket: reasons, important factors;
  • Identified preferred and rejected supermarkets;
  • Analyzed price perception;
  • We have evaluated the impact of positive and negative pricing policies.

Based on the research data, we have also determined the position of METRO according to the parameters: Knowledge and Attendance, Attractive and Rejected supermarkets, Factors of visit and choice, Satisfaction.

What benefit have the client got?

We have developed and conducted a comprehensive design study to solve the client’s objectives.

Value:

The limit of price elasticity is determined.

Specific recommendations are provided for:

  • Pricing and categories;
  • Risks of consumer outflow when prices for specific goods are changed;
  • Brand perception and customer base loyalty structure.

“As a result, METRO has received recommendations from us on retaining the customer base and critical drivers for the growth of the base.”

In addition, hypotheses on the importance of price as a stimulating factor for different categories of customers were tested.

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