FK DISTRIBUTION

Re-thinking the costumer approach

VERTICAL STRATEGY case - FK Distrution, NejTak+

INTRODUCTION

Vertical Strategy helped FK Distribution innovate s new value proposition based on changes in consumer behavior.

VERTICAL STRATEGY case - Metroxpress, Customer ExperienceTHE SITUATION

FK Distribution, the leading distributer of leaflets in Denmark, was facing a rapid decline in distribution volumes as a continuously growing number of households were unsubscribing to weekly advertising leaflets. This development was a concerning threat to the business of FK Distribution as a decline in distribution was threatening many of their advertising partnerships.

OUR APPROACH

VERTICAL STRATEGY case - Metroxpress, Customer ExperienceVertical Strategy teamed up together with FK management and a dedicated internal task force to identify the root causes of the problem. Through consumer research, market analysis, and internal workshops it was discovered that consumers wanted more control about which leaflets to receive. Based on this understanding, a digital solution allowing consumers to opt-in for certain leaflets was identified as a solution. Different mock-ups were modelled and tested for consumer desirability to find the best solution. In cooperation with selected customers, a new business model and a new price structure were developed, both of which were beneficial to customer ROI as well as FK’s profitability. The final product was named NejTak+ (Opt out plus).

 

VERTICAL STRATEGY case - FK Distrution, NejTak+THE RESULTS

12 months after the concept was launched, more than 400.000 consumers signed up for “NejTak+” and more than 80 of the leading retail chains joined the program. As of now, the development of the solution has led to a positive turnaround and customers are facing industry leading return on marketing investments. Finally, FK Distribution has built capabilities to drive further digital disruption and continuously deliver more value to consumers and customers.

“They are dedicated, passionate and deliver above expectations every time. Without them we wouldn’t be where we are today – disrupting the industry” 

Lasse Brodt
Sales Director, FK Distribution