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Digital Leaders in Sweden 2019 This study assesses 85 leading Swedish companies’ digital maturity across six dimensions: digital marketing, digital product experience, e-commerce, e-CRM, mobile and social media. www.bearingpoint.se digitalleaders.bearingpoint.com/sweden
Table of contents Editorial 3 Digitalization has become an Research summary 4 Key findings 6 integrated part of Swedish Digital leaders at a glance 8 companies’ businesses, and Dimensions of digitalization for most of them, it is a vital Digital marketing 12 Digital product experience 14 part of their offerings, their E-commerce 16 E-CRM 18 internal processes and their Mobile 20 business models. Social media 22 Industries Summary 26 Telecom B2B 28 Telecom B2C 29 Food retail 30 Retail 31 Energy 32 Media 33 Passenger transportation 34 Bank 35 Insurance 36 Manufacturing 37 Consumer products (food) 38 Digital leaders in Europe Summary 42 Top 10 European companies 44 European Digital Leaders by 46 digital dimension Summary What Swedish companies could learn 52 from global forerunners BearingPoint on digitalization 57 Author 58 Appendices Objectives and study sample 60 All rankings 62
Editorial Digital leaders are customer-centric, know how to embrace change, prioritize, focus and build a culture ready for the future. Digital transformation is exciting but also Overall, Swedish companies have increased finding and developing the right talent is challenging to leaders in every sector. their digital maturity compared to last year, truly difficult. In a continually changing Organizations that thrive and that are however they still only get a sufficient grade. competitive environment, leaders constantly digitally mature are typically those that The result is encouraging but should still be face new challenges and must adapt both embrace change and that are customer- seen as a call to action. Changes need to the organization and their leadership style centric. They adapt their products, services happen now and quickly. to this new digital environment. To manage and internal operations to stay ahead these challenges successfully, leaders require of the competition. However, it can be We find it surprising that Swedish new skills and capabilities that they have not difficult to determine what to prioritize companies only receive a sufficient score needed in the past. and how to focus your efforts and in our Digital Leaders Study. A lot of resources to maximize returns. money and resources have been spent Our experience from working with hundreds on improvements, but they have not of organizations during their digital First of all, it is important to understand necessarily led to successful transformations transformation indicates that digital leaders where the organization’s existing strengths so far. Some answers can be found in legacy have the following in common: lie from a digital perspective and which technology, which is causing problems. It capabilities it has to further develop in is difficult for organizations to adapt to the • They set a vision and goals, and they order to truly modernize and transform its fast pace of technology innovation (such as align their strategy and governance. organization for the future. artificial intelligence, the Internet of Things and automation). However, there are ways • They know their customer and there is customer experience throughout the The launch of our fourth Digital Leaders to help businesses capture the possibilities customer journey. Study in Sweden comes at a critical time for businesses, where many do not feel of emerging technology by creating tailored solutions for every type of business and • They have priorities, a focus and momentum. sector. • Innovation is evident throughout the they have the right priorities, momentum and, maybe even more importantly, the organization, not just in products. leadership capabilities needed to make We do not doubt there is a willingness and their digital transformation journey a understanding of the need to change and • There are no silos, the business side success. to change quickly. The issue is more around and the technology side collaborate in how to prioritize and to understand the creating business results. Speed is critical, due to the fast pace of strengths and the areas to develop. It is • They have a culture that includes development, and companies that have important to have a focus: no company digital talent and leadership. previously been digital leaders run the we have studied is transforming in all six risk of falling behind if they do not keep dimensions at once. The insights and ability We believe that with the right customer- up their momentum. In this year’s study, to understand strengths and weaknesses centric mindset, vision, focus and leadership, we see that some of the digital leaders in that you find in this report can lay the Swedish companies have a bright future and previous years have lost ground and fallen foundation for future planning and success. a chance to become global digital leaders. behind their peers. This is not because they have done something wrong; it is just Digital transformation requires strong Louise von Blixen-Finecke because they have not been doing things leadership to drive the change. Partner fast enough or have perhaps been doing Organizations should not simply ignore BearingPoint Sweden things slower than the competition. the absence of genuine digital leadership, however; they must recognize that 3
Research summary Swedish companies are embracing digitalization, but even though all industries have improved on average, there is still great variation between them. Digitalization has become an integrated The most digitally mature company is part of Swedish companies’ businesses, Tele2 (B2C) (3.4), closely followed by SJ and for most of them, it is a vital part of (3.4) and IKEA (3.4), all of which receive their offerings, their internal processes and a satisfactory grade. Tele2 (B2C) beats their business models. Swedish companies all other companies with a strong score in are embracing digitalization, but even every dimension except social media, and though all industries have improved the highest score of all companies in E-CRM. on average, there is still great variation As with the rest of the top-five companies, between them. Tele2 (B2C) has made improvements since the 2018 study. Another interesting findings Swedish companies receive a sufficient is that neither SJ, IKEA nor Bonnier were in grade (2.8) overall, which is better than the top 10 list in 2018. The latter two also last year’s score (2.6). show impressive score improvements of more than 0.5. All top-scoring companies On an industry level, there are no major have improved significantly more than the movements since last year. As in 2018, industry averages. telecom (B2B), which has a satisfactory grade (3.2), beats telecom (B2C) with Digital product experience (3.4) and a similar satisfactory grade (3.1). The e-commerce (3.1) are the dimensions where telecom industries have kept their place at the companies are performing best, with the top of the leaderboard and are again average grades of good. In digital product the most digitally mature. The telecom experience, the companies generally industries are followed by food retail (2.9), receive high scores in the sub-dimension of which has reached the same score as functionality and design, but lower scores retail (2.9) for the first time in the Digital in product and store information. Product Leaders in Sweden study history. We see a presentation drives the high average score trend in the digital maturity of food retail, in e-commerce, but many companies could which has climbed significantly for several improve their purchasing processes and consecutive years. sales support. Consumer products (food) (2.1) continues Digital marketing, on the other hand, is a to be the least digitally mature industry dimension where Swedish companies only and needs to make significant efforts receive a poor grade (1.6) on average. There in digitalization to increase its digital is no particular reason for the low scores maturity to a level with the other in digital marketing, but most companies industries. Consumer products (food) has score poorly throughout the whole also made little to no improvement, once dimension. Most of the companies receive again receiving a score of 2.1. Retail (2.9) low scores in the use of display advertising, and Telecom (B2B) (3.2) are two other use of affiliate marketing and use of search industries which show no improvement, engine marketing; own media is the only both receiving the same score as in last category in which the average company year’s study. score is good. 4
Top five companies 2019 2018 1. Tele2 (B2C) 3.4 3.3 2. SJ 3.4 2.9 3. IKEA 3.4 3.0 4. Telia Company B2B 3.4 3.3 5. Bonnier 3.3 2.6 Industry ranking 3.2 3.1 2.9 2.9 2.9 2.9 2.8 2.8 2.6 2.6 2.1 l il nk ) B2 B B2 C tai ta y erg Med ia tio n Ba nce rin g od om m od re Re En rta ura factu ts (fo lec e co Fo ns p o Ins nu c Te Tel tra Ma r pro du g er e ssen nsu m Pa Co 5
Key findings Percentages indicate the share of the evaluated companies that are utilizing the listed categories as part of their digital customer interface. Digital marketing Cross-linking 69% Pay per click 45% Display ads in main media 45% Retargeted advertising 25% Affiliate marketing 9% Digital product experience Detailed product/services data 98% Promotion campaigns on the website 60% Product comparisons 48% Content sharing via social media 27% Product reviews 12% Integration with social media 10% E-commerce Product availability 94% Click and collect 54% Cross-selling 38% Chat service as sales support 34% Fast-delivery option 13% 94% of companies display product availability in their web store 6
Almost all companies have some degree of e-commerce in their mobile channels E-CRM Online customer profiles 94% FAQs 80% Customer loyalty programs 63% Customers are able to give feedback online 55% Real-time chat service 48% Call-back services 14% Mobile Mobile commerce 96% Mobile-optimized sites 89% iOS applications (iPhone, not iOS in general) 86% Android application 86% iPad application 49% Social media Facebook 100% YouTube 100% Twitter 92% LinkedIn 91% Instagram 87% Snapchat 21% Pinterest 6% All companies have a Facebook presence but only one in five companies use Sweden’s second largest social media, Snapchat 7
Digital leaders at a glance Digital marketing Digital product experience E-commerce Swedish companies struggle with digital Swedish companies excel in the digital A majority of Swedish companies attain marketing. On an industry level, grades product experience dimension, with a good grade in e-commerce, but several range from poor to good. However, only almost all of them attaining a good of them could have improved their score. seven companies manage to score a good grade or higher, retaining Swedish firms’ Last year’s dominant industry winner in grade. excellent ability to offer customers a well- e-commerce, telecom (B2B), falls behind, developed product experience. as retail is best-in-class this year (3.6). The leading Swedish company in The leading Swedish company in The leading Swedish companies in digital marketing is: digital product experience is: e-commerce is: Tre (B2C) (3.2) Telia Company (B2B) (4.3) Volvo Cars (4.1) for B2B Elgiganten (4.0) for B2C Last year’s study showed this dimension Increased functionality, improved The average Swedish company to be the least digitally mature for design and easily available content grade in e-commerce is good, which Swedish companies, and this year is no springboard several companies to higher is an improvement from last year’s different. The average score (1.6) and grades in the digital product experience sufficient grade. However, more than grade (poor) remains the same. Although dimension in this year’s study. Swedish 30 companies receive a grade below Swedish companies score better grades companies showcase their capacity good, which indicates that there is room in the display advertising and own to offer a well-refined digital product for improvement. The best-performing media categories, the decline in all other experience. However, there is still room category is product presentation followed categories sees Swedish companies fail to for improvement, as only six companies by purchasing process. On average, both seize opportunities for improvement in the achieve a very good grade. With increased categories have a good grade. Companies digital marketing dimension. demand for high-quality customer could look for inspiration from the energy interfaces, Swedish companies are well industry, which leads the sales support positioned, but they will need to stay on category. Retail (3.6) is the leading top of developments to retain high grades industry in e-commerce overall, and in this dimension. companies in this industry excel in the purchasing process. 8
E-CRM Mobile Social media Swedish companies have improved their On average, Swedish companies receive On average, Swedish companies have score in the e-CRM dimension in this year’s a good grade in this digital dimension, improved in the social media dimension study. But despite a slight improvement and all industries other than energy have in this year’s study. But despite this in the overall average score, Swedish performed worse than last year. Only improvement, scores in this dimension companies fall short and score just below Trelleborg achieves a very good grade in vary greatly, with almost two-thirds of good (2.9). mobile. Swedish companies scoring below good. The leading Swedish company in The leading Swedish company in The leading Swedish company in e-CRM is: mobile is: social media is: Tele2 (B2C) (4.2) Trelleborg (4.0) TV4 (4.3). This year’s higher score is a result of This year’s performance in the mobile Swedish companies have performed Swedish companies’ overall increased dimension shows that several Swedish better across the board on all social media efforts to improve their e-CRM. But despite companies still need to improve. Only platforms and have also improved their an increase across the board, where the Trelleborg receives a very good grade, website integration scores. With several grades for two categories have climbed while almost half of the other companies verified accounts and companies using from sufficient to good, no category has a have a grade below good. Despite this social media platforms for marketing and very good score. The best industry in the disappointment, Swedish companies do customer contact, Swedish companies e-CRM dimension this year is passenger have the capacity to achieve a better are well positioned to take advantage of transportation, which receives a good grade in this dimension, if they sharpen social media channels. There are, however, grade (3.4). With improved customer their focus. Increased efforts to develop certain areas in which improvement is service functions, personalization and proper mobile applications and websites necessary. The greatest increase in activity crowdsourcing, Swedish companies could help Swedish companies attain a and engagement has been in the use of showcase some refinement in e-CRM, but better score. As mobile usage increases, Instagram, as more companies use this more than 20 subcategories show either customer reach via this digital dimension platform for advertising and customer no change or have regressed, leaving will be crucial to Swedish companies’ contact. However, almost two-thirds opportunities to improve in e-CRM. success. of all Swedish companies score below Despite the subpar performance in this good. Website integration has increased year’s study for Swedish companies greatly on average from last year’s study, overall, there are several high-rising as companies focus on increasing their companies that demonstrate several ways follower bases and expanding outreach. in which e-CRM practices can be executed well. 9
Dimensions of digitalization This study assesses Swedish companies’ digital maturity across six dimensions: digital marketing, digital product experience, e-commerce, e-CRM, mobile and social media. The results show that the digital maturity of Swedish companies varies widely across these six dimensions and significant improvements can be made across all dimensions.
Digital marketing Digital marketing is the dimension in which Swedish companies struggle to perform well. With a poor overall performance in this dimension, Swedish companies need to increase their digital marketing initiatives. Digital marketing is the worst-performing dimension for Swedish The assessment is based on companies. With an average grade of poor, and a score that a company’s ability to reach has not changed since last year, Swedish companies struggle to potential customers and to improve in this important dimension. lead them to the company websites with the help of display Despite improvements in the display advertising and own media advertising, search engine categories, the performance in all other categories has decreased, marketing, affiliate marketing and and 59 companies score poor or worse. Those that scored higher the use of own media. only achieved a good grade at best. Swedish companies need to address this alarming development, as opportunities for refined Categories • Display advertising digital marketing initiatives are readily available. The top-performing industry in this year’s study is telecom (B2B) • Search engine marketing (2.9). This ranking indicates a shift in the top position in this • Affiliate marketing dimension, as telecom (B2C) (2.6) comes second. However, this is • Own media a trend, as both telecom industries consistently take the top-two rankings every year. Insurance (2.0) is not too far behind, but companies in this industry should look to the digital leaders in this dimension for inspiration. The best performance in this year’s study comes from a telecom (B2C) company. Tre (B2C) (3.2) is one of seven companies to achieve a good grade in this dimension, as it climbs from 29th place. Closely following Tre (B2C) are Bonnier (3.2) and Tre (B2B) (3.2), both going from a sufficient grade to good in this year’s study. 12
Top 10 companies - Best practices - Digital marketing Digital marketing 2019 2018 Tre (B2C) 1. Tre (B2C) 3.2 2.1 The best-performing company in the digital marketing 2. Bonnier 3.2 2.3 dimension is Tre (B2C) (3.2). 3. Tre (B2B) 3.2 2.2 By climbing 29 places in this year’s ranking, Tre (B2C) (3.2) takes 4. Scandinavian Airlines 3.1 3.1 the top position. Although this upsurge in ranking is positive, 5. Tele2 (B2B) 3.1 3.0 the unbalanced performance across categories is alarming. As 6. Tele2 (B2C) 3.0 3.5 the performance in the affiliate marketing and search engine 7. SBAB Bank 3.0 2.6 marketing categories has stagnated significantly, the subpar 8. Telia Company (B2B) 2.8 2.8 performance is, however, contrasted by a remarkable increased performance in display advertising and own media. 9. SJ 2.7 2.7 10. Folksam 2.5 - Leading industries - Digital marketing 1. Telecom (B2B) 2.9 2.6 2. Telecom (B2C) 2.6 2.8 3. Insurance 2.0 1.9 4. Passenger transportation 1.9 2.0 5. Retail 1.7 1.9 6. Energy 1.7 1.7 7. Bank 1.6 1.6 8. Media 1.4 1.6 9. Food retail 1.3 1.3 10. Consumer products (food) 1.0 1.0 11. Manufacturing 0.8 0.8 Average 1.6 1.6 13
Digital product experience Digital product experience is where Swedish companies perform the strongest. They perform particularly well within functionality and design, but they could improve within product and store information. Swedish companies perform well in digital product experience, Evaluates the company websites’ with almost all companies attaining a good grade or higher. functionality, design and content, The industry average has not changed since last year, but some especially from the aspects of industries need to improve their efforts to not fall behind. product and brand experience. Telecom (B2B) (3.9) and telecom (B2C) (3.7) lead the digital Categories • Functionality and design product experience dimension. They receive high grades overall and excel in the functionality and design category by having good navigation and layouts on their websites. The bank industry • Content and company information (3.6) has improved this year and retains third place, followed by retail (3.6), which has dropped from its top placement last • Product and store year. Like successful telecom (B2B) companies, firms in the information bank industry perform well within the functionality and design category, but they should focus their efforts on store content and company information in order to attain a good grade in this category. The top-performing companies in digital product experience are Telia Company (B2B) (4.3), Clas Ohlson (4.0) and Telia Company (B2C) (4.0). This year’s rising star is Avanza Bank (3.9), climbing almost 50 places to reach the top 10. The company has improved within functionality and design, where it is among the top firms. However, most of the increase is the result of an improved score within product and store information. Overall, the functionality and design and product and store information categories have improved this year. Content and company information has dropped slightly, resulting in a lower grade. Swedish companies seem to focus their efforts on improving the digital product experience, but there are certain areas that they need to focus on. Two things in particular could help Swedish companies to further improve their digital product experience score: first, increased website integration, and second, giving customers the option to score and comment on products and services. 14
Top 10 companies - Best practices - Digital product experience Digital product experience 2019 2018 Telia Company (B2B) (4.3) 1. Telia Company (B2B) 4.3 3.6 The best-performing company in digital product experience 2. Clas Ohlson 4.0 4.0 is Telia Company (B2B) (4.3). 3. Telia Company (B2C) 4.0 3.6 Telia Company (B2B) is best-in-class in digital product experience 4. Systembolaget 4.0 3.8 with a very good grade. It scores highest of all Swedish 5. Nordnet 4.0 3.5 companies in the functionality and design and content and 6. Tele2 (B2B) 4.0 3.8 company information categories. The company’s website provides 7. H&M 3.9 3.9 a clear and structured display of products and services. Within 8. IKEA 3.9 3.9 product and store information, the company receives a good grade with room for improvement. 9. Electrolux 3.9 3.7 10. Avanza Bank 3.9 3.3 Leading industries - Digital product experience 1. Telecom (B2B) 3.9 3.7 2. Telecom (B2C) 3.7 3.8 3. Bank 3.6 3.5 4. Retail 3.6 3.8 5. Energy 3.5 3.8 6. Food retail 3.5 3.5 7. Passenger transportation 3.3 3.2 8. Insurance 3.3 3.1 9. Manufacturing 3.2 3.3 10. Media 3.2 3.1 11. Consumer products (food) 3.2 3.3 12. Average 3.4 3.4 15
E-commerce Several industries attain a good grade but some struggle in e-commerce. With competition from international markets, Swedish companies should improve their performance in this dimension to stay competitive. Most industries have improved their grades this year, but only three Swedish Evaluates the company’s companies have a very good grade in the e-commerce dimension; the majority ability to sell via digital attain a good grade, while more than 30 companies have a grade below good. This channels, especially from indicates that several Swedish companies have room for improvement to reach the aspects of product their full potential. presentation, purchasing process and sales support. Having an online presence is becoming increasingly important for Swedish companies. In the first quarter of 2018, two-thirds of Swedes purchased online Categories every month, and in 2017, the growing domestic e-commerce market for consumers reached SEK 67 billion1. Swedish companies face fierce competition • Product presentation from international firms, but by leveraging their local advantage and having well- • Purchasing process developed e-commerce options for their customers, they have a chance to fend off this global competition. • Sales support Retail is the leading industry in e-commerce this year with a good (3.6) grade, followed by food retail (3.4) and manufacturing (3.3). Retail companies excel in the purchasing process with well-functioning shopping carts and ordering processes for customers. To further improve, companies can focus their efforts on sales support, where the majority have a poor or failed grade. The bank and insurance industries have improved this year but still have a long way to go to reach a good grade. They could improve in the e-commerce dimension by refining their purchasing processes. Swedish companies score lowest in the sales support category in e-commerce, as they are struggling to keep up with modern technologies to support potential customers throughout the purchasing process. Energy is the best-performing industry within sales support. Companies could improve within this category with clearly labeled sales support options and functionality such as click-to-call and proactive chat services. Several industries are represented in the top 10 company ranking, but there has been a remarkable shift for some. Telecom (B2B) was the front-runner in e-commerce last year, with all of its companies in the top four, but it placed seventh in this year’s study (3.0). Insurance (2.9), bank (2.8) and passenger transportation (2.7) all improved this year but are far behind the leading industries in e-commerce. Most companies perform well in product presentation and purchasing process. However, only about 35 percent receive a good grade in sales support, which means Swedish companies have an opportunity to improve. 16 1) e-baromentern Q1 2018, PostNord, Svensk Digital Handel och HUI Research, 2018, https://www.postnord.se/siteassets/pdf/rapporter/e-barometern-q1-2018.pdf
Top 10 companies - Best practices - E-commerce E-commerce 2019 2018 Volvo Cars (B2B) and 1. Volvo Cars 4.1 2.3 Elgiganten (B2C) 2. Elgiganten 4.0 3.2 The best-performing B2B company in 3. SKF 4.0 3.2 the e-commerce dimension is Volvo Cars 4. Scania 4.0 2.2 (4.1). In the B2C category, the best- 5. Electrolux 3.9 3.5 performing company is Elgiganten (4.0). 6. IKEA 3.9 2.8 Due to their nature, B2B and B2C companies 7. Kronans Apotek 3.9 - have been evaluated with slightly different 8. Bonnier 3.9 2.1 e-commerce criteria. 9. Qliro Group 3.8 3.4 10. Apoteket 3.8 2.9 Volvo Cars is the leading Swedish B2B company in e-commerce, receiving an outstanding (5) grade in both product presentation and purchasing process. This Leading industries - year, Volvo Cars has made a substantial E-commerce improvement within the purchasing process category and is now offering customers an improved purchasing process. However, there 1. Retail 3.6 3.1 is still room for improvement. Increased 2. Food retail 3.4 2.8 functionality and automated sales support could help Volvo Cars improve in this 3. Manufacturing 3.3 2.4 category. 4. Media 3.3 2.4 5. Energy 3.1 2.3 Elgiganten is the leading Swedish B2C company in e-commerce, receiving a very 6. Telecom (B2C) 3.0 2.7 good (4.0) grade in all three categories; 7. Telecom (B2B) 3.0 3.9 product presentation, purchasing process and sales support category. Elgiganten has 8. Insurance 2.9 2.4 made substantial improvements since last 9. Bank 2.8 2.2 year within all three categories, especially the purchasing process, and Elgiganten 10. Passenger transportation 2.7 2.1 now offer customers click & collect service. 11. Consumer products (food) 1.7 1.3 To further improve in the e-commerce dimension, Elgiganten could apply a more Average 3.1 2.5 visible shopping cart. 17
E-CRM On average, Swedish companies have improved this year (2.9) from last year (2.7) in the e-CRM dimension. Although Swedish companies have improved substantially, this year’s score still only corresponds to a sufficient grade. E-CRM is a dimension in which Swedish companies have performed poorly for the past two years. Despite some advances overall, with Evaluates the company’s increased efforts to improve, Swedish companies fall short in reaping ability to maintain and expand the benefits of their work. With increased attention on, and demand its customer relationships in for customer contact and interaction, e-CRM is a crucial dimension for digital channels including success. customer service, cross-selling, customer engagement and personalization. Increased efforts are a clear trend, but there are several areas where Swedish companies miss out or fall short, with more than half of them scoring below good. The success of e-CRM is dependent on Categories three categories: in two of these – direct marketing and loyalty, and • Customer service personalization and involvement – Swedish companies receive a good grade on average, but they score below good in customer service. • Direct marketing and loyalty The marginal improvements in each category have just been enough to push the average to a good grade this year. With low scores for • Personalization and involvement live chat functions and transparency of customer service availability, several Swedish companies have missed out on opportunities to improve in the e-CRM dimension. The passenger transportation industry (3.4) tops the table in this year’s e-CRM dimension, climbing one place from last year’s study. Telecom (B2C) (3.3) climb several steps on the ranking from eigth place to second place. However, last year’s leading industry, retail (3.0), drops a disappointing seven places to eighth. Consumer products (food) (2.2) and manufacturing (2.2) retain positions in the bottom three, where they are joined by the insurance industry (2.9) this year. The company rankings are slightly different this year, with only three of them retaining their places in the top 10 from last year. The best- performing company this year is Tele2 (B2C), climbing a remarkable 45 steps on the ranking from last year’s study. Following Tele2 (B2C), SJ climbs a notable 31 steps on the ranking in this year’s study. Both companies owe their success to better customer service availability and increased personalization and involvement. Despite some high-climbing companies and a slight increase in the overall average, the customer service score is still below good. With customer contact being crucial to the success of businesses, increased efforts in this area along with other categories of e-CRM could help Swedish companies improve their digital maturity and grow. 18
Top 10 companies - Best practices - E-CRM E-CRM 2019 2018 Tele2 (B2B) 1. Tele2 (B2C) 4.2 2.6 The best-performing company in e-CRM is Tele2 (B2C) (4.2). 2. SJ 4.1 2.8 3. E.ON 3.8 3.3 Tele2 (B2C) makes a remarkable leap from 46th to top position in this year’s study. Despite a lower score in the customership 4. Com Hem 3.8 2.5 category, Tele2 (B2C)’s increased efforts in customer service as 5. Handelsbanken 3.7 2.8 well as in personalization and involvement lift the company’s 6. Marginalen Bank 3.6 3.0 overall rank to first place. The company receives a good grade 7. Clas Ohlson 3.6 3.6 in customer service and direct marketing and loyalty and a very 8. Tele2 (B2B) 3.6 2.5 good grade in personalization and involvement. 9. IKEA 3.6 3.4 10. Electrolux 3.6 2.7 Leading industries - E-CRM 1. Passenger transportation 3.4 3.0 2. Telecom (B2C) 3.3 2.4 3. Bank 3.3 2.6 4. Telecom (B2B) 3.2 2.8 5. Energy 3.2 2.9 6. Media 3.1 2.8 7. Food retail 3.1 2.5 8. Retail 3.0 3.0 9. Insurance 2.9 2.4 10. Consumer products (food) 2.2 1.5 11. Manufacturing 2.2 2.0 Average 2.9 2.5 19
Mobile On average, Swedish companies have a good (3.0) grade in the mobile dimension. Top-performing companies perform well in both mobile websites and mobile applications, but several companies receive a failed grade in the mobile dimension. Approximately 85 percent of the Swedish population has access to smartphones and almost 70 percent has access to a tablet2, and as these Evaluates the company’s become increasingly popular, companies have to adapt their digital ability to utilize mobile interfaces. Having efficient mobile websites and applications, so consumers channels to support its can access the same functionality and service with their smartphones business and customers, or tablets as their PCs, can be an advantage. Swedish companies must especially with the help of adapt and evolve their digital interfaces to stay competitive and retain mobile sites and applications. customers. Categories Food retail (3.6) is best-in-class in the mobile dimension, followed by • Mobile websites telecom (B2B) and energy. Companies in the food retail industry provide good mobile websites with responsive behavior and functionality for • Mobile applications mobile devices, but their mobile applications leave room for improvement. Increasing functionality by adding inventory levels in stores, in-store information and shipment tracking could help companies realize their potential. Telecom (B2B) companies could possibly attain higher grades in the mobile dimension by improving their mobile applications to support increased functionality. Trelleborg (4.0) is the top company in mobile, performing especially well in the mobile applications category. It provides several applications to fit its customers’ needs. City Gross (3.6) is one of this year’s rising stars, as the company has climbed more than 40 steps on the ranking to reach the top 10 in the mobile dimension. This can mainly be attributed to improvements within the mobile applications category this year. However, there is still room for improvement, including adding functionality for rating and reviews, tracking shipments and inventory levels in stores to its application. Overall, Swedish companies have work to do to perform better within the mobile dimension. Mobile websites receive a good grade in general, but mobile applications have room for improvement. Responding to feedback on their applications, optimizing them for tablets and enhancing functionality could be necessary to stay competitive. Having well-performing mobile websites and mobile applications could prove important as customers demand more from their smartphones and tablets. 20 2) https://www. iis.se/docs/Svenskarna_och_internet_2017.pdf, p10
Top 10 companies - Best practices - Mobile Mobile 2019 2018 Trelleborg 1. Trelleborg 4.0 4.0 The best-performing company in mobile is Trelleborg (4.0). 2. SJ 3.8 3.5 3. Volvo Cars 3.8 3.9 This year, Trelleborg ranks highest in the mobile dimension, despite having the same grade as last year. Trelleborg’s key 4. Kronans Apotek 3.8 - strength is the subdimension of mobile applications, with 5. ICA Banken 3.7 3.6 a multitude of applications to meet its customers’ needs. 6. IKEA 3.7 4.2 Improvement areas can mainly be found in the mobile websites 7. Willys 3.7 3.8 subdimension and include optimization of the website for mobile 8. Apotek Hjärtat 3.7 3.1 devices and increasing functionality of the search function. 9. City Gross 3.6 3.0 10. Systembolaget 3.6 4.0 Leading industries - Mobile 1. Food retail 3.6 3.6 2. Telecom (B2B) 3.3 3.3 3. Energy 3.2 3.1 4. Passenger transportation 3.1 3.4 5. Telecom (B2C) 3.1 3.3 6. Manufacturing 3.1 3.4 7. Media 3.0 3.4 8. Bank 3.0 3.1 9. Retail 2.8 2.9 10. Consumer products (food) 2.4 2.8 11. Insurance 2.2 2.7 Average 3.0 3.1 21
Social media With increased activity and a larger outreach, Swedish companies have greatly improved in the social media dimension in this year’s study. However, there is still room for improvement for both individual companies and industries as a whole. On average, Swedish companies have improved in the social media dimension. However, activity on social media platforms Evaluates the company’s varies heavily between them. With almost two-thirds of Swedish activity level and consistency companies scoring below good, there is certainly room for on relevant social media improvement across all social media platforms. channels and own websites. Although Swedish companies have increased their scores on all Categories social media platforms, the greatest advancement has been due • Facebook to an improved presence on Instagram. More companies are now • Twitter • Instagram using Instagram for advertising and informing customers. The overall presence on Facebook has also increased on average, with higher engagement scores and increased customer interaction, • YouTube marketing and crowdsourcing initiatives. The average presence • Other social media on Twitter has not significantly changed, but there is an increase in companies using Twitter for marketing. Despite the increased presence and engagement on social media platforms, there are certain criteria in which Swedish companies have performed worse than the previous year, on average. For example, fewer companies now have direct purchase availability on Facebook, have a Facebook Messenger chatbot, use Twitter for customer service or encourage two-way communication on Twitter. The top-performing company this year is TV4 (4.3), followed by MTG (4.2) and ABB (4.0). The top-three companies this year all have high grades on all social media platforms but perform poorly in the website integration criterion. This is the second year that website integration has been measured for Swedish companies, and it has greatly increased in the past year on average. This allows Swedish companies to position themselves and reap the benefits of large following bases on social media platforms, with Volvo Group scoring highest in this criterion. Five industries receive a good grade in this year’s study. Media (3.8) keeps its lead as the best in the social media dimension. Telecom (B2C) (3.1) follows closely behind, as the industry improves slightly and retains its position. Insurance (2.4) falls behind and drops to last place in this year’s study. 22
Top 10 companies - Best practices - Social media Social media 2019 2018 TV4 1. TV4 4.3 3.7 The best-performing company in social media is TV4 (4.3). 2. MTG 4.2 3.7 3. ABB 4.0 2.9 TV4 takes first place in social media this year. With an outstanding improvement from last year’s good grade, the 4. Sveriges Television 4.0 3.5 company has managed to develop its social media presence well. 5. Bonnier 3.9 3.5 With higher engagement on Facebook, Instagram, Twitter and 6. H&M 3.9 3.8 YouTube, accompanied with increased website integration, TV4 7. Aller media 3.9 3.5 has positioned itself to increase its follower base even further. 8. Volvo Group 3.8 3.6 9. Volvo Cars 3.7 3.3 10. Viasat 3.7 3.1 Leading industries - Social media 1. Media 3.8 3.3 2. Telecom (B2C) 3.1 3.1 3. Food retail 3.1 2.6 4. Manufacturing 3.0 2.6 5. Energy 3.0 3.0 6. Passenger transportation 2.9 2.5 7. Telecom (B2B) 2.8 2.4 8. Consumer products (food) 2.7 2.8 9. Retail 2.6 2.4 10. Bank 2.5 2.2 11. Insurance 2.4 2.1 Average 2.8 2.5 23
Industries The 2019 edition of our Digital Leaders in Sweden assesses 85 companies across 11 industries: Bank, Consumer products (food), Energy, Food retail, Insurance, Manufacturing, Media, Passenger transportation. Retail, Telecom (B2B), Telecom (B2C). On an industry level, there are no major movements since last year. On a company level, however, there have been some significant developments.
Summary With an overall sufficient mark (2.8), the grade for Swedish industries remains the same. This positive, but unbalanced development comes with trending improvements for all industries in one dimension, but with a stagnating performance in another. Swedish industries have performed last year’s third-placed retail industry to This is disappointing, as the industry relatively well in this year’s study, with take third spot. Companies in the food has declined in performance by almost an improved performance across three retail industry have managed to adapt an entire grade. If this development dimensions, two dimensions with to increasing demands for digitalization, continues, this industry could be overtaken unchanged scores and a stagnating but they will need to improve their in this dimension in the future. A less performance in one dimension. The best performance in the mobile dimension positive trend in this year’s study is most industry in this year’s study is telecom to keep up with the higher demand of industries' declining performance in the (B2B) (3.2). With improvements in four mobile purchases. mobile dimension, where every industry dimensions and an overall good score in except for energy scores a worse grade. three, telecom (B2B) takes the top spot A trend in this year’s study is an ahead of its B2C counterpart. Telecom improvement by the majority of industries Despite unbalanced developments across (B2C)’s (3.1) second place in this year’s in the e-commerce dimension. Despite dimensions and industries, one positive study is partly due to telecom (B2B)’s unbalanced grades across industries, development is that the average Swedish performance, but mostly because of a Swedish companies have, on average, score has improved from 2.6 to 2.8. worse performance in three dimensions. become better in the e-commerce Although the grade does not change from dimension, ensuring that they keep the current sufficient, this is positive, and Coming in third is the food retail industry up with the increasingly high demand with increased efforts from all companies, (2.9), jumping two places from last year’s on e-commerce quality. The only we could see improvements in next year’s ranking. With improved scores within industry that has failed to improve study. e-commerce, e-CRM and social media, on its e-commerce score is this year’s food retail climbs high and surpasses top-ranking industry, telecom (B2B). Performance by digital dimension Digital leader - Tele2 (B2C) Digital marketing 1.6 1.6 Digital marketing 3.0 3.5 Digital product experience 3.4 3.4 Digital product experience 3.6 3.9 E-commerce 3.1 2.5 E-commerce 3.6 3.1 E-CRM 2.9 2.5 E-CRM 4.2 2.6 Mobile 3.0 3.2 Mobile 3.4 3.1 Social media 2.8 2.5 Social media 2.7 3.2 26
Top five best-performing companies 2019 2018 1. Tele2 (B2C) 3.4 3.3 2. SJ 3.4 2.9 3. IKEA 3.4 3.0 4. Telia Company B2B 3.4 3.3 5. Bonnier 3.3 2.6 Industry ranking 2019 2018 1. Telecom (B2B) 3.2 3.2 2. Telecom (B2C) 3.1 3.0 3. Food retail 2.9 2.7 4. Retail 2.9 2.9 5. Energy 2.9 2.7 6. Media 2.9 2.7 7. Passenger transportation 2.8 2.7 8. Bank 2.8 2.6 9. Insurance 2.6 2.4 10. Manufacturing 2.6 2.4 11. Consumer products (food) 2.1 2.1 27
Telecom (B2B) 3.2 Telecom (B2B) ranks highest in this year’s study, with remarkable performances in the digital product experience, e-CRM and mobile dimensions. The industry has a good (3.2) grade overall, but there are still several areas in which it could improve. Swedish companies in the telecom (B2B) industry perform very Telecom (B2B): digital dimensions well in this year’s study. This remarkable performance is a result of every company in this industry achieving a good grade. However, not one single company is close to a very good grade. This follows Digital marketing 2.9 2.6 a similar performance in last year’s study in which all telecom Digital product experience 3.9 3.7 (B2B) companies received a good grade. Despite increased efforts to better performance in all dimensions, not a great deal has E-commerce 3.0 3.9 happened. One interesting development, however, is that the gap E-CRM 3.2 2.6 between the lowest-placed company in this industry and the top company is narrowing. Mobile 3.3 3.3 Social media 2.8 2.4 Telecom (B2B) falls short in reaching a good grade in two dimensions: digital marketing and social media. This leaves great room for improvement and, if acted upon, it could send this industry to the top of the digital maturity scale and not just in the ranking. Despite the industry’s shortcomings, several of its companies perform well in these dimensions. Telecom (B2B): digital leaders Telia Company (B2B) (3.4) is the best performer in this industry. 2019 2018 Coming in a close second is Tele2 (B2B) (3.2), followed by Tre (B2B) (3.1). This ranking is identical to the previous year, but the 1. Telia Company (B2B) 3.4 3.3 gap between the top spot and last place is narrowing. 2. Tele2 (B2B) 3.2 3.3 3. Tre (B2B) 3.1 3.1 No industry in Sweden attains a very good grade. However, this 4. Telenor (B2B) 3.1 3.0 industry is positioned well to do just that. Increased efforts to improve a lagging performance in several dimensions could see this industry rank highly again next year. 28
Telecom (B2C) 3.1 Telecom (B2C) (3.1) comes in second place, as the telecom industries maintain their stronghold on the top-two positions. Despite this high rank, however, the industry fails to score a grade higher than good. Telecom (B2C) (3.1) takes second place in this year’s ranking, Telecom (B2C): digital dimensions falling just behind its B2B counterpart. The industry achieves a good grade in five dimensions, but the stagnating performance in three others and a sufficient grade within digital marketing keeps Digital marketing 2.6 2.8 it off top place this year. There is room for improvement for this Digital product experience 3.7 3.8 industry, and companies need to embrace the opportunity if they desire a top position in the digital maturity scale. E-commerce 3.0 2.7 E-CRM 3.3 2.4 Although companies in this industry have become better Mobile 3.1 3.3 regarding the e-commerce and e-CRM dimensions, their performance across all other dimensions has decreased. Last Social media 3.1 3.1 year’s study saw companies in this industry performing relatively well but unfortunately falling short of reaching a good grade in the digital marketing, e-commerce and e-CRM dimensions. Initiatives to improve performance in e-commerce and e-CRM have reaped benefits, but the focus on the other dimensions has faltered, seeing a decline in performance across these dimensions. Telecom (B2C): digital leaders The top-performing company in this year’s study is Tele2 2019 2018 (B2C) (3.4). Despite achieving a sufficient grade in the social 1. Tele2 (B2C) 3.4 3.3 media dimension, the company gets a good grade in all other 2. Tre (B2C) 3.2 2.9 dimensions, retaining its stronghold in the top telecom (B2C) 3. Telia Company (B2C) 3.1 3.2 position in this year’s study. With a remarkable performance in areas in which other companies fail to achieve a good grade, 4. Telenor (B2C) 2.8 2.7 Tele2 (B2C) has positioned itself to keep its place if it manages to improve in the dimension in which its industry fails to achieve a good grade, namely digital marketing. 29
Food retail 2.9 The high-rising food retail industry (2.9) takes third place in this year’s study with a remarkable climb and improvements in three dimensions. Despite this increase, the industry fails to break the good barrier and scores a sufficient grade. Food retail (2.9) has slowly but steadily climbed the ranks in Food retail: digital dimensions recent years and notches third place in this year’s study. This is a remarkable improvement by an industry that placed eighth two years ago. However, food retail falls just short of a good grade, Digital marketing 1.3 1.3 but with improvements in three dimensions, it seems well on its Digital product experience 3.5 3.5 way. E-commerce 3.4 2.8 Food retail ranks in the top three for the e-commerce, mobile E-CRM 3.1 2.5 and social media dimensions, and it achieves a good grade in Mobile 3.6 3.6 every dimension except digital marketing, in which it scores poor. Despite solid efforts to increase the grades for the e-commerce, Social media 3.1 2.6 e-CRM and social media dimensions from sufficient to good in this year’s study, the activity devoted to increasing the grade in the digital marketing dimension has been deficient. The increased efforts across the industry are evident, as we see three companies go from achieving a sufficient grade to good, with all remaining companies closing in on a good grade. This Food retail: digital leaders year’s highest-performing company in food retail is ICA (3.1), 2019 2018 as it retains its top position from last year’s study and leads the industry forward in the digital maturity scale. Systembolaget (3.0) 1. ICA 3.1 3.0 comes in second place this year, followed by Willys (3.0), both 2. Systembolaget 3.0 2.9 retaining their positions. However, the remaining companies are 3. Willys 3.0 2.7 closing in on the top firms in this industry, and the top performers will need to increase their efforts in the faltering dimensions to 4. Coop 3.0 2.7 retain their positions as digital leaders in food retail. 5. City Gross 2.9 2.4 6. Hemköp 2.7 2.5 30
Retail 2.9 A slight decline in ranking sees the retail industry (2.9) finish in fourth place in this year’s study. Despite a good grade in three dimensions, a sufficient grade and lower in three others leaves the industry struggling to improve. Retail (2.9) takes fourth place in this year’s study, falling from Retail: digital dimensions third last year. The retail industry achieves a good grade in the digital product experience, e-commerce and e-CRM dimensions, but gets a sufficient grade in mobile and social media, and Digital marketing 1.7 1.9 a disappointing poor in the digital marketing dimension. Digital product experience 3.6 3.8 Despite increased efforts in e-commerce and social media, the performance in all other dimensions has stagnated, leaving the E-commerce 3.6 3.1 retail industry failing to reach a good grade. E-CRM 3.0 3.0 Mobile 2.8 2.9 Despite the stagnating performance in several dimensions and only reaching a sufficient grade, the retail industry is the leader in Social media 2.6 2.4' the e-commerce dimension. However, with more than half of the industries receiving a good grade, retail faces severe competition in this dimension. With its current advantage combined with increased efforts to maintain this lead, retail companies should however be able to uphold the industry’s high performance in this dimension. Retail: digital leaders The best-performing company in this industry is IKEA (3.4), as it climbs six places and goes from sufficient to good in this year’s 2019 2018 ranking. Following closely behind is Clas Ohlson (3.3), retaining its 1. IKEA 3.4 3.0 second place from last year’s study. The winner of the past two 2. Clas Ohlson 3.3 3.3 years, Qliro Group, drops two places but maintains its position in 3. Qliro Group 3.2 3.3 the top three (3.2). With the sale of a few key subsidiaries, the company sees its digital maturity drop and will need to focus on 4. Apoteket 3.1 3.1 improving the digital maturity across all dimensions for its current 5. H&M 3.1 2.9 operations to try and attain the top position once again. 6. Elgiganten 3.0 3.1 7. Kronans Apotek 3.0 n/a 8. Apotek Hjärtat 2.9 3.0 9. Stadium 2.9 2.6 10. NetOnNet 2.8 3.1 11. Axstores 2.8 3.1 12. Kjell & Company 2.7 n/a 31
Energy 2.9 An average performance places the energy industry (2.9) in fifth place in this year’s study. The industry has only one company in the overall top 10 this year, and that is also the only company to score a good grade within energy. Energy is the fifth-placed industry in this year’s study (2.9). Energy: digital dimensions Despite an increase in the overall score, and an increase in grade from sufficient to good in the e-commerce and e-CRM dimensions, the energy industry falls short of reaching a good Digital marketing 1.7 1.7 grade. Digital product experience 3.5 3.8 E-commerce 3.1 2.3 Swedish industries have generally struggled with the digital marketing dimension and energy is no different. Digital E-CRM 3.2 2.9 marketing is the only dimension in which the energy industry Mobile 3.2 3.1 achieves a poor grade, just like last year. This disappointment is coupled with a stagnating performance within digital product Social media 3.0 3.0 experience, a dimension in which this industry came third in last year’s study but where it now only ranks sixth. The best performer in this industry is E.ON (3.3), which is the only energy firm in this year’s top 10 among Swedish companies. E.ON takes top spot, as it overtakes last year’s leader in this industry, Vattenfall (3.0). E.ON and Vattenfall are the only companies to Energy: digital leaders achieve a good grade in this industry. Despite performing worse 2019 2018 than its peer Vattenfall in the digital product experience and e-commerce dimensions, E.ON’s comparatively high performance 1. E.ON 3.3 2.7 within social media and digital marketing places it on top. Fortum 2. Vattenfall 3.0 3.0 (2.4), on the other hand, fails to reach a good grade, and its poor 3. Fortum 2.4 2.5 performance leaves it with a sufficient grade or lower in every dimension except for digital product experience. 32
Media 2.9 Despite improving its performance across several dimensions, the media industry (2.9) fails to reach a higher grade. Its companies will need to increase their efforts and performance as media outlets become increasingly digital. The media (2.9) industry ranks sixth this year, climbing from Media: digital dimensions seventh in last year’s study. With a good grade in every dimension except digital marketing, the industry performs relatively well. Despite this, its performance in the mobile and digital marketing Digital marketing 1.4 1.6 dimensions has stagnated, leaving room for improvement across all dimensions. This climb in rank is positive, but with the Digital product experience 3.2 3.1 passenger transportation industry (2.8) edging closer, media E-commerce 3.3 2.4 companies will need to increase their efforts across all dimensions E-CRM 3.1 2.8 to retain this position. Mobile 3.0 3.4 The media industry performed exceptionally well in the social Social media 3.8 3.3 media dimension, coming first in this and last year’s study. Media not only retains its position but has increased its stronghold, considering that the gap to the second-placed industry has widened. Despite its exceptional performance within social media, however, it has stagnated in other dimensions, and media has failed to improve within digital marketing and mobile. Media: digital leaders The best-performing company in this industry is Bonnier (3.3), as it climbs four steps to reach the top in this year’s ranking. 2019 2018 Bonnier fails to come top in five dimensions in this industry, but a 1. Bonnier 3.3 2.6 comparatively well-balanced performance with a good grade in 2. Com Hem 3.1 2.9 four dimensions has paid off. Com Hem (3.1) retains its second 3. TV4 2.9 2.6 position, failing to finish first, as its performance has stagnated in the digital marketing, digital product experience and mobile 4. Spotify 2.8 3.0 dimensions. One disappointment in this year’s study is the 5. Aller media 2.8 2.8 performance of Sveriges Television (2.6). Despite placing fourth 6. MTG 2.8 2.5 in this industry last year, its stagnating performance sees the 7. Sveriges Television 2.6 2.6 company fall to second-last position. 8. Viasat 2.6 2.4 As media outlets are becoming increasingly digital, it will be key for companies in this industry to increase their digital aptitude. With increased efforts in areas of improvement, the industry is well positioned to be a digital leader. 33
Passenger transportation 2.8 The passenger transportation industry (2.8) comes in seventh place. Despite coming top within e-CRM, disappointing performances in other dimensions stops the industry from breaking into the good barrier. The passenger transportation industry (2.8) comes in seventh. Passenger transportation: The industry takes the lead in e-CRM this year and achieves a good grade in three dimensions. However, subpar performances digital dimensions in the digital marketing, e-commerce and social media dimensions, with sufficient grades or lower, sees passenger Digital marketing 1.9 2.0 transportation dropping one place in this year’s ranking and achieving an overall sufficient grade. Digital product experience 3.3 3.2 E-commerce 2.7 2.1 The industry’s performance in the e-CRM dimension is a result E-CRM 3.4 3.0 of all of its companies but one achieving a good grade. This is trumped by the performance within digital product experience, Mobile 3.1 3.4 as all companies attain a good grade despite the average being Social media 2.9 2.5 lower than in the e-CRM dimension. Companies in this industry usually have very functional and consumer-oriented websites, enabling a smoother digital experience. The top-ranking company within passenger transportation is SJ (3.4), where it edges out Scandinavian Airlines (3.2) to take Passenger transportation: its top place from last year. Apart from the switch in first place, digital leaders the ranking is identical to that of the past two years. What is remarkable, however, is the overall increase in score and digital 2019 2018 maturity for companies in this industry. This improvement in the 1. SJ 3.4 2.9 industry sees three companies go from a sufficient to a good grade. 2. Scandinavian Airlines 3.2 2.9 3. Stena Line 3.0 2.9 Despite an overall improvement, there is a worrying development 4. Skånetrafiken 2.5 2.5 for the companies that have not achieved a good grade. The gap 5. Storstockholms Lokaltrafik 2.5 2.5 between the top-performing half and the bottom-performing half 6. Västtrafik 2.3 2.3 is increasing, and if this trend continues, it will soon be too late for the bottom performers to catch up to the top ones. 34
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