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Matas: Subscribe to health and beauty

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Matas aim to create a subscription that is focused on convenience and competitive prices.

In brief

Retail is under pressure and customer loyalty is in high demand. This has also been felt by Denmark’s largest chain within health and beauty, Matas, which in 2018 invested in increased digitization of their business.

In 2018, Matas had a strong foundation to think about how the physical and digital presence could be utilized even better commercially. Matas decided to develop a subscription concept that would help create a new revenue stream and at the same time help strengthen the relationship and loyalty to their customers even more.

Through an innovation project with Subscrybe, Matas created the subscription solution, where customers now have the opportunity to put selected health and skincare products in fixed delivery with a 20% discount and free shipping. The subscription is sold both online and offline in Matas’ 250+ different stores.

The task

Matas wanted to tie customers even closer, to increase customer loyalty and lifetime value. The purpose of the project was therefore initially to develop a number of ideas for subscription concepts based on what the customers’ wishes and needs were. Next, these had to be tested, qualified and a subscription solution had to be selected.

Matas could see that there was a demand in the market for faster and easier convenience solutions at competitive prices. Therefore, the idea generation was customer-centric and guided the decisions throughout the entire project.

In addition to the physical stores and the webshop, the subscription concept should provide a new, valuable way to shop with Matas – and it should be flexible and possible to personalize to customers. The subscription model supports just this. Subscrybe was responsible for managing the innovation process. This included development and testing of the concept as well as the production of the business case and implementation plan. Subscrybe also assisted in the implementation phase.

About Matas
Matas A / S is Denmarks largest beauty, personal care and health products, retailer. The chain was founded in 1949. Matas consists of 250+ physical stores across the country and has 2,500 employees. The store chain was listed on the stock exchange in June 2013. Visit Matas.dk here.

Subscrybe was given the responsibility to facilitate the development of a completely new and innovative membership, which i.e. should:

  • Ensure that various subscription solutions were researched and evaluated
  • Create a solution that focused on convenience solutions
  • Ensure that the solution worked both online and offline
  • Create an MVP solution that Matas could go to market with relatively quickly according to the principle ‘Think big, start small, scale fast’

The overall process

  1. Business insight: Through interviews with key people at Matas and insight into relevant material, Subscrybe gets  thorough insight into the business and strategy
  2. Idea generation: Longlist with 21 different ideas for subscription concepts is prepared through desk research, internal meetings, workshop with the target group and interviews with stakeholders at Matas
  3. Selection: 7-9 subscription concepts are selected for further description on the basis of an assessment of strategic fit and financial potential
  4. Concept descriptions: The selected ideas are conceptualized and described in greater detail
  5. Choice: Choice of three concepts that go forward in the process

Subscrybe’s project deliveries

The project has three main deliveries:

  • Project delivery 1: 7-9 subscription concepts. 3 slides per concept developed specifically for Matas and the vision: High-level and without concrete calculations
  • Project delivery 2: 3 subscription concepts. Approx. 15 slides per. concept Detailed concept description incl. target group assessment and high-level business case
  • Project delivery 3: Matas’ subscription concept. Presentation of strategy and concept Approx. 25 slides incl. management summary + appendix Strategy and concept description incl. target group assessment and detailed business case

The subscription concept

In the new subscription solution, customers can subscribe to vitamins, supplements and facial care. They save 20% on all products in subscription and get free delivery. Matas plans to expand into more product categories.

The result

Matas’ subscription solution was launched in 2019, and according to Janne Andersen, Head of Business Development at Matas, the results are promising:

“Our subscription solution has been very well received and customers want to subscribe to more and more of their products. So far, we provide subscriptions for vitamins, supplements and facial care, but we can already hear from customers that they really want the opportunity to subscribe to all their beauty products. We are constantly listening to what customers want. So what are they ask for, what are they dissatisfied with in regard to their solution and experience, and how can we continuously optimize it. We have been live with the solution for less than a year so far. It is a new business leg and must have a sustained focus across the organization in relation to improving the customer journey and optimizing our processes. ”

Experience the solution yourself by visiting matas.dk or one of Matas’ 250+ stores.

Want to know more about this case?

Contact CEO Morten Suhr Hansen on tel. +45 40 29 45 34.