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Client Case: How Kronans Apotek accelerated its digital transformation

By 8 March, 2018 No Comments

Client Case: How Kronans Apotek accelerated its digital transformation

Background

Kronans Apotek is the third largest pharmacy chain in Sweden. With 326 pharmacies across the country, it’s receiving more than 65,000 customer visits per day. Digital sales channels consist of kronansapotek.se, and the Kronans Apotek App, where customers can manage and order prescription drugs.

The challenge

After the pharmacy industry in Sweden was deregulated in 2009, digitalisation happened swiftly and along with it came new customer expectations, new business logic, and new online presence. Also, competition from new entrepreneurial and digital companies with fast-growing business models and focus on digital customer engagement was significant.

Kronans Apotek, with sales of 7 billion, had a general market share of 18%, but the online market share was only 5 %. It was clear that their online business had not taken off and corporate governance and organizational structure were still set-up to suit traditional pharmacy trade. There was also a large skills gap that needed to be redressed.

Kronans Apotek needed to make digital transformation happen, and a decision to focus on relaunching, developing and accelerating their e-commerce was taken. They now faced three alternative ways forward:

  1. Recruit new talent
  2. Start a new low-price brand online
  3. Bring in a consultancy

Options one and two required recruitment of several individuals and would be difficult and take too long.

The solution

To implement digital transformation at the necessary speed, they decided that bringing in a consultancy was the way to go.

Curamando was given the overall responsibility for developing and accelerating the e-commerce, and for building a team of specialists to work on strategies for purchasing, product range, and pricing, traffic- and customer acquisition, conversion, CRM, as well as stock and logistics.

A clear plan for knowledge transfer and phasing out of consultants by recruiting new staff was also developed.

The result – Online sales increased by 69 % in 9 months

During 2017, Kronans Apotek’s online visitors increase by over 150 % and sales increased by 69 %. Improved systems and processes for stock, logistics, and supply have resulted in a notable increase in efficiency and capacity on the stock side. Without any additions to headcount, three times as many deliveries are now handled successfully every day.

Moreover, the results of the cooperation during the first 12 months have also contributed to a strong basis for scalability and – through knowledge transfer – an enhanced capacity to develop the business within digital channels.Client Case: How Kronans Apotek accelerated its digital transformation“We chose Curamando since they are experts in all dimensions of e-commerce. For companies our size, there are many complex processes that need to operate together to create a successful digital business in the long term. Switching from physical to multi-channel trade also presents a company culture challenge. Curamando has the experience, knowledge, and the ability to implement strategies, which was crucial for all of this to happen”, said Fredrik Ljungström, Marketing and Sales Director at Kronans Apotek.

Key success factors

  • Curamando’s integration with Kronans Apotek’s team
  • Providing the client with a combination of business consultants and digital experts joining different projects based on needs
  • Strong support from the board and management
  • Close and engaged cooperation
  • 100 % Customer focus
  • Speedy decision making, working processes, and methods
  • The groundwork – doing things in the right order
  • Clear targets linked to the overall business and brand
  • The client, Kronans Apotek (well briefed, prepared, involved, and demanding in a very positive sense)