Supermarket chain warns agressive mobile interactions could turn off customers

The retailer's head of insight said that mobile is a truly disruptive force in its business

Although UK supermarket chain, ASDA, sees mobile as a disruptive force to its business model, the retailer's head of insight and pricing believes that if too many different players make a 'land grab' for the customer it could kill all future interaction.

Alex Chruszcz was speaking at a British Retail Consortium conference in London this week, where he said that mobile provides a real opportunity to further cut costs out of ASDA's pricing.

He said that the retailer is fully focused on mobile since the launch of a new mobile application at the end of last year, but is fully aware of the competitive threat.

"At ASDA we are completely committed to mobile as a channel. But it's an arms race, everything that we put into our app at the end of last year for its launch - which got fantastic views, fantastic ratings - you need to just expect that the competition will catch up within months," said Chruszcz.

"The pace of change and the pace of development is so fast. Mobile interaction with the customer is about keeping your eyes open."

However, he argued that when you have customers using your mobile applications you shouldn't just use it as an opportunity to spam them with marketing, but instead harness the data to create efficiencies elsewhere in the business.

"I think more disruptively, we are interested in mobile and how it is changing the way people shop fundamentally. So how can we use mobile to be a better retailer? ASDA's advantage is price, we are cheaper than our competitors," said Chruszcz.

"Can we use mobile to make ourselves even more efficient to reduce our prices, but delivery better quality, better service, through new operating models. I think that's where it is genuinely exciting for us as a retailer."

He added: "There's obviously excitement within marketing for mobile as a way to send out more offers - but ultimately its just fancy vouchers and offers. Same as the stuff we have always had. The disruptive bit is how do you change your business to take advantage of the fact that you know where your customers are at any moment in time.

"The minute I can adjust my prices by 10 percent, then we are in a different game."

What you need to know about loctaion-based marketing
6 mobile marketing trends to leverage
Mobile ad spending leaps at Facebook
How mobile apps are changing fast food

Finally Chruszcz noted that there are a number of players in the mobile space attempting to be the first and best at interacting with the customer - where he cited the platforms (namely Apple and Google), the banks (through payment technologies), the mobile operators and the third parties (such as the retailers).

However, he warned that this fierce competition could be problematic going forward.

"As businesses, as retailers, we are very conscious that there is a bit of a land grab to own this interaction with the shopper," said Chruszcz.

"You've got all these parties saying that they can get messages to the shopper through different media channels. Ultimately the customer has the choice to turn this stuff off and there is a real risk that if this is done inappropriately by just one or two organisations, it could kill the whole thing."

Join the newsletter!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Hi James, shouldn't marketers also be focusing on collecting and utilizing up to date first-party profiling data on customers so that mes...

Tom

3 ways customer data can increase online sales conversion

Read more

Wouldn't reconnecting with younger consumers be in direct contravention of the code on alcohol advertising?

Tim Palmer

Vodka Cruiser reconnects with younger consumers via category-first Facebook Live campaign

Read more

Latest Podcast

Getting Intimate with CX Ep 5: Tammy Marshall, founder, The B Hive

How much of customer experience is having the foresight to know what those individuals might like, versus asking them? In Episode 5 of this new podcast series, BrandHook MD, Pip Stocks, talks with Tammy Marshall about the importance of asking your customers questions, how consistency plays a role in engagement, but how the unexpected adds extra value.

More podcasts

Sign in