Arvato created a customised payment solution called Kukkaro (“Purse”) for Finland’s Halpa-Halli chain of discount stores. The solution is seamlessly integrated into Halpa-Halli’s look and feel.
Halpa-Halli, a trailblazer in low-cost shopping for Finnish consumers, wanted to increase growth with a multichannel payment solution that matched the company’s strong brand. The aim was to link Halpa-Halli’s new online store with its physical stores and create a unified shopping experience.
Soon to mark 50 years in business, Halpa-Halli first took the plunge into e-commerce in the early 2000s but decided to wait until the market had developed. With Finnish online shopping skyrocketing in the years since, the company felt the time was right for a new webshop, and has invested in a customised multichannel payment solution to strengthen its brand.
”Arvato was the only service provider that asked us what we wanted. From the very beginning we worked in genuine cooperation to identify the best systems and develop the best solution for our company. Others offered us a product, Arvato gave us an approach”Business Director Tuomo Simojoki
Genuine support for multi-channel shopping
Tuomo strongly believes that the customer’s needs don’t change whether they shop online or in a physical store. Halpa-Halli had a clear vision from the start: it needed a payment solution that could genuinely support multichannel commerce and strengthen customer trust through a unified look and feel. A white-label payment solution immediately felt like the right way to go.
“When you choose a customised payment solution, the payment process fades into the background,” Tuomo says. “Instead of a complicated payment transaction, the customer experiences a positive buying experience.”
It took the company almost a year to navigate the e-commerce solutions landscape. When comparing payment solutions, Halpa-Halli went through all the billing service providers in Finland before ultimately deciding on Arvato Finance.
”Multichannel is where it’s at. We want to truly combine all channels, because our online store isn’t a separate product. It supports the brick-and-mortar stores – and vice versa. Kukkaro is a wonderful tool for this”Business Director Tuomo Simojoki
All channels, one bill
Arvato created a completely new billing solution for Halpa-Halli. The service, dubbed Kukkaro (Finnish for “purse”), allows Halpa-Halli customers to make up to €1,500 worth of purchases from both the physical Halpa-Halli stores and the online store. Customers then receive a single invoice by e-mail once a month.
“Multichannel is where it’s at,” Tuomo says. “We want to truly combine all channels, because our online store isn’t a separate product. It supports the brick-and-mortar stores – and vice versa. Kukkaro is a wonderful tool for this.”
Arvato also implemented a customised customer portal for Halpa-Halli that is seamlessly integrated into the look and feel of the online and physical stores. Using the portal, customers can easily check their purchases and review their bills, without ever leaving the Halpa-Halli brand environment.
The multichannel solution serves Halpa-Halli customers in several ways. A single monthly invoice also provides a cheaper option for the customer, because every purchase – online or in-store – is paid for at the same time, avoiding multiple charges. Products ordered online can also be easily collected from a store.
Targeted marketing and payments
Compared with payment cards or online banking services, Kukkaro is an excellent tool both for targeted marketing and payments. Kukkaro stores data on every purchase made by Halpa-Halli customers. The company can then use this information to tailor personalised marketing messages and increase sales to specific target groups.
“If the customer has bought a trampoline, they might also want to purchase a safety net,” explains Jouko Tossavainen, Business Development Manager at Arvato. “Based on the data, you can send them an offer that is more likely to interest them.”
Unlike cards or cash, Kukkaro can only be used at Halpa-Halli, increasing customer loyalty and encouraging more purchases.
Kukkaro’s story continues
The Halpa-Halli online store launched in early April 2017 and is developing rapidly. In the autumn, its Kukkaro payment solution will be extended to include brick-and-mortar stores. It’s no surprise then that company’s outlook for 2018 is optimistic.
Halpa-Halli has a strong regional market share in brick-and-mortar sales, and the online store is expected to boost the company countrywide. Just one month after opening the online store, 80% of purchases came from areas where Halpa-Halli has no local presence. With Halpa-Halli also looking to expand through cross-border e-commerce, having its own payment solution could give it an edge internationally, too.
Facts about Halpa-Halli
Facts about Halpa-Halli
- Finland’s first discount store was founded by Esko Ylinen in 1967
- The Kokkola branch, where the company is headquartered, opened in 1969
- Over 1,500 employees and 38 stores across Finland
- Annual turnover of €300 million
- One of Finland’s most secure and affordable web shops
- Created by Arvato Financial solutions, Halpa-Halli’s Kukkaro payment solution went live on 4 April 2017