UK-based Argos invests in big data to personalise customer retail experience

Plans to open more digital concept stores

Argos has seen a 45 percent increase in the number of registered customers in its database after launching a 'My account' function across its online channels.

The retailer is investing in growing the amount of data it has on its customers so that it can drive more sales by offering shoppers a more personalised experience informed by this data.

By encouraging customers to register with 'My account', Argos has increased its customer database to 11.6 million registered customers, up from eight million as of October 2013.

Home Retail Group, Argos' parent company, said in its full-year results this week: "The customer insight gathered as a result of the increased level of registrations has enabled a more tailored product offering based on customers' needs, and has also enabled Argos to run bespoke promotional offers based on both customers' previous activity and their profiles.

"During FY15, Argos will continue to expand its database of registered customers, collect more customer data and use this data to further improve customer satisfaction with its offerings."

Argos previously said in its half-year results to October 2013 that it would use the customer data to send marketing emails with bespoke product recommendations.

The launch of 'My account' was part of improvements Argos has made to its online and mobile commerce offerings, which has led to an increase in online sales.

According to its latest results, online sales represented 44 percent of total Argos sales in the past year, aided by growing sales via mobile and tablet devices. Sales through mobile devices grew by 89 percent in the year and now represent 18 percent of total Argos sales.

Digital concept stores expansion

Check & Reserve, a service that bridges online with bricks and mortar, has also grown as a payment option, with 32 percent of total Argos sales being reserved online for collection in-store. This is a more popular option than home delivery, as just 12 percent of online sales were delivered to the home, and is where the retailer sees its stores playing a crucial role.

"The Argos national store network, which 734 stores that are smaller and more efficient than traditional stores, is a potential strategic advantage in a digital future. Increasingly customers will seek local product collection, and will appreciate face-to-face customer service," Home Retail Group said.

It added that the trial enabling shoppers at selected eBay merchants to order products for collection at around 150 Argos stores is still in progress, with more than 100 merchants signed up to the initiative since the trial began in September.

Meanwhile, Argos plans to add another 25 digital concept stores over the next year to the initial six it trialled over the Christmas trading period, after receiving "encouraging" early feedback from the pilot.

These stores allow the retailer to test features including online prepayment, a dynamic voice-driven picking system that helps to speed up the retrieval of customer orders and tablet browsers instead of laminated catalogues. It plans to roll out the voice picking system and fast track collection to all stores during 2014/15.

More digital enhancement

Over the coming year, Argos plans to build on the digital improvements it has made so far. This ranges from redesigning its online checkout to accommodate flexible payment and credit options, to improving search functions and showing real-time stock availability by location.

"In addition, a dynamic route scheduling system will be implemented which will allow customers to select accurate narrow timeslots for home delivery," the retailer said.

"Argos will also introduce a new secure payment infrastructure which will enable customers to store their card details safely with Argos for future use."

The retailer also plans to expand the use of a dynamic price optimisation tool to automate pricing recommendations that it had started implementing last year.

"Further developments to this tool during FY15 will include its implementation across further product categories, as well as the introduction of an enhanced commercial dashboard which will bring real-time digital and customer information to Argos' trading teams, enabling better decision-making," Home Retail Group said.

Home Retail Group announced a 27 percent increase in pre-tax profit to £115.4 million in the year to 1 March 2014.

More on how retailers are using technology to lift their customer experience game

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Great read. I agree that it should be a perfect balance between interacting with your customers and knowing your brand. As a business, yo...

Caroline Scott

7 ways CMOs can improve their customer engagement game

Read more

Very true. Team development helps improve collaboration among the team members. I was able to improve my team's collaboration skills by t...

Quent Sinder

Why empowering others can help make you a great leader

Read more

CRM is a very good software that can help you succeed in your business. In my company, this system has allowed me to improve customer rel...

Anna Janicka

Sensis rebrands to Thryv and brings business software to Australian SMBs

Read more

AI Leasing Assistants have finally arrived for the multifamily industry. With so many to choose from it can be hard to figure out which i...

Alice Labs Pte. Ltd.

CMO's top 8 martech stories for the week - 6 May 2021

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Blog Posts

Why if marketing is all you do, you’ll never be very good at it

OK, so you’re probably thinking: “Here comes another article to badger me about living in my bubble.” And also, “I bet this bubble-bashing piece will go on to explain how I can achieve better results through some heady dose of new life experiences, new routines and annoyingly different opinions on social media.”

Dane Smith

Behavioural science lead and regional consulting partner, Ogilvy

A leader’s role in rebuilding a culture of confidence

Every day, there are new predictions and studies on the future of work, the state of the economy and the unfolding global pandemic. All of which creates uncertainty and heightens the imperative of effective leadership.

Michelle Gibbings

Workplace expert, author

Confused About Your Customers?​

​I've worked in brand and marketing for more than 20 years. But there’s one area where I’ve found myself going around in circles and I must admit I'm becoming increasingly confused.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in