Challenge: “Our brand must not be associated with the feeling of aggravation”
Few people are able to keep track of their receipts. In the case of Lagkagehuset, this meant that many customers couldn’t redeem their receipts/vouchers for a “bonkringle” (“receipt pretzel” – a gift to the customer) when they had purchased for DKK 1,000, but perhaps only when they had purchased for DKK 1,500. Frustrating. CEO of Lagkagehuset at the time, Jesper Friis, did not want this feeling of frustration or aggravation to be associated with the brand.
In fact, this statement ended up as the starting point of a digital adventure: In the fall of 2016, we laid the foundation for what at this time was the world’s worst business case: To help the customers of Lagkagehuset keep track of their receipts, so they were sure to get their “bonkringle”.
This turned into an app, which sole purpose was to handle the customers’ receipts digitally, and thus function as a digital wallet for the customers’ bonus points.
Solution: A good experience
With many active users, the app turned out to be a success. It was only natural to continue the development, which is what we have been doing over the last six years. Firstly, we added Click & Collect, and, most recently, we have incorporated Loyalty 2.0, in order to offer the customers the most relevant products and discounts.
At the same time, it is an important task to help the customers through the store as easily as possible: The customer enters, draws a digital number for the queue in the app. Now, the customer’s information will appear to the staff, and the customer will receive a personal buying experience – based on their personal loyalty profile and points. When the transaction is done, the customer will earn points to be used on free products.
We have looked further into the customer experience through a detailed analysis of 42 million transaction lines and a look into specific touchpoints the user experiences when visiting a physical store.
Every touchpoint has been revisited by a digital- and solution oriented mentality to ensure we match or enhance the user experience.
Results: The numbers speak for themselves
Currently, 515,000 users are members of the loyalty program (in Denmark). Approximately, this equals 11 % of the adult Danish population. From 2019 to 2021, the in-app sales quadrupled. Furthermore, 65 % of the customers who signed up for the loyalty program in 2020 are still active buying customers with an average purchasing frequency of 1.6 x pr. month.
We can ascertain that the app also supports the business structure abroad. Recently, it was selected by Retail Week as one of the five best online shopping solutions – next to Nike and H&M. We are proud of this. In the UK, Lagkagehuset is called Ole & Steen. Read the review here.
You have to earn your customers and your users. The particular statement “frictionless experience” we take as a seal of approval and quality. It’s not enough that we are able to gather statistics and offer relevant offerings. It has to be done elegantly, and never at the expense of the user experience. We have succeeded with this
In 1991, Ole Kristoffersen opened the first bakery on the ground floor at Torvegade by Christianshavns Torv. In 2008, Lagkagehuset turned into what we know it as today, as Ole got together with Steen Skallebæk. At this time, Steen owned a number of bakeries in Jutland under the name Skallebæk Bageri with a head office in Haderslev. The two bakers had separately run bakeries in different parts of the country with great success and almost identical processes. From the epicenters in Copenhagen and Haderslev, Lagkagehuset spread throughout the country, and in 2017 there were more than 80 locations in Denmark.
Since the opening of the first store, the goal has been to provide good taste experiences for everyone. The great experiences are created through an ambitious approach to craftsmanship, ingredients, taste and quality.