If you were a very tenured very experienced no-nonsense, discerning finance minded and numbers driven CFO in a real-world scenario at high-calibar San Francisco Bay Area based company, what would practically go through your head as you read the following, on each part of the content below?
####The Grocery Home Shopping (GHS) journey
Guide to acquisition and retention strategies
2011 - 2014

{Page 1}
Proposition summary by pillar
Pillar 1: Value
2011: Free Delivery
2012: Delivery pricing:
• Free delivery off £99; • Free delivery off £125 Incentives: • Money off versus Free delivery
2013: • Delivery pricing – rollback slots;• Delivery Pass
2014: • Delivery Pass Price Lock; • Delivery pricing - £1, £2, £3 slots
Pillar 2: Quality
2011:
2012: Service improvement
2013: Recipes
2014:
Pillar 3: Convenience
2011: Mobile app – iphone & Click & Collect
2012: • Mobile app - Android; • 11pm cut off
2013: • Delivery Pass; • Add to basket; • Onsite messaging
2014:
Pilar 4: Events/campaigns
2011:
2012: • Grocery Home Shopping (GHS) awareness – picked, packed and delivered; • Mobile app
2013: • Click & Collect; • #SaveSummer; • Delivery Pass
2014: • Delivery Pass Price Lock; • Click & Collect awareness

{Page 2}
Proposition drivers – learnings

Value Pillar:
- Delivery pricing - incentives
:• Incentives drive customer take up, but not long term loyalty, • However competitor vouchering makes this activity essential as part of a competing strategy.
• Key is to develop ladder style incentives to take customer past 4th shop
- Delivery pricing – reduced
slots:
• Activity drives GHS take up amongst new and active customers; • Pricing can push customers outside of normal behavior e.g.,weekend slots to mid week.
- Delivery Pass:• Excellent tool for retention of active customers. Whilst this reduces basket, it increases frequency and overall spend by customer; • Tool does not work for acquiring new customers who have not yet trialled the service, even at low intro and campaign prices.

Quality Pillar:
- CRM: • Program essential for the onboarding of new customers , management of active customers and reactivation of lapsing customers based on a time to next shop model
- Focus on service:• Focus on substitutions, nil picks and on time delivery metrics significantly impacts customer satisfaction and therefore retention.

Convenience Pillar:
- Recipes site: • Activity still immature. Impact of activity low at outset due to SEO quality of competitor sites such as BBC Good Food and other established recipe providers.
- Mobile app: • Great tool for acquiring new customers. Where customers do continue to shop they have frequency and overall spend per customer. However basket is impacted.
- Click & Collect: • Making the service FREE helps to drive take up over Grocery Home Shopping GHS;
• Service is more familiar for customers for General Merchandise (GM), so additional time in education for food is needed in the UK.
- 11pm cut off:
• Not a campaignable message but strong as part of the BAU message matrix;• Increased sales by around 4-5k orders a week due to number of customers making orders in
this timeframe as well as additional add to basket items.
- Receipt tool: • Not a very successful tool in it’s current format. Customer currently has to add the barcode number. System issues with character limits. Plans to move to scan functionality in 2014
- Onsite messaging: • Very successful tool for individual level targeting. Customers comfortable with the process and will click on new messages when received. Ideal for Delivery Pass renewal messages.

{Page 3}
"****Campaign summaries****"

***VALUE – free delivery off £99***

###Proposition: Summer campaign to drive orders during the summer seasonal lull

###Campaign objective: Promote the free delivery. Raise basket

###Activity: Email, online display, onsite
###Spend: £370k

###Campaign date: June 2013

###Performance:
• Estimated £2.5m sales
• 9,100 additional orders, driven by an increase in frequency by all customer groups.
• Offer has been primarily utilized by our loyal shoppers:
• 87% of orders using the offer were Active Shoppers and 13% new/lapsed
• 66% of orders were from our loyal shoppers (monthly or more frequent)
• The biggest impact was seen in customers already spending over £100 as we increased loyalty of those shoppers
• Basket value increased for all customer segments, except for our frequent shoppers spending over £125
• The biggest increase in basket was for shoppers spending less than £90 pre trial

###Learnings:
• The offer didn’t drive incremental new customers as the basket was too high for a first time shopper. Timing also coincided with a competitor offer for money off incentives on £50 to the same customer groups.
• “Used in a targeted way i.e. different basket thresholds i.e. £80-90 it is a mechanic which can drives incremental basket.” We would not recommend a broad brush promotion in this way.
• Could be also used to drive behaviour of segments i.e. FREE delivery on orders over £99 in mid week.


***VALUE – Free delivery off £125; Asda Money Credit Card***

###Proposition:
Free delivery for all orders over £125 when customers uses an Asda Money Credit Card

###Objective:
Encourage take up of the credit card for Asda
Grocery Home Shopping (GHS) customers
Encourage loyalty of Grocery Home Shopping
(GHS) shoppers with an Asda Money Credit Card

###Activity: DM, email, online, in-store leaflets

###Campaign dates: July 2012 – March 2014

###Performance:
• 6k customers using the card
• Average basket of £164 and average frequency of once a month

###Learnings:
• This offer replaced an existing free delivery off £99 on the previous Asda Credit Card. Insight showed no detrimental impact from increasing the minimum basket amount. However the offer is not a strong driver of credit card.
• 20% of all customers using this offer switched to the ‘Delivery Pass’ once launched as this reduced the minimum average basket to £40.
• Although average basket drops from £120 to £100 for ‘Delivery Pass’ customers, frequency of shop increases to fortnightly and customer average spend increases by 12%
• Offer has now been removed from the card and we are reviewing new options for these customers as a cross sell from Grocery Home Shopping (GHS) customers.


***Quality – Recipes***

###Proposition:
Provide inspiration for mum through family friendly recipes. Ability to add recipe to Asda GHS account through ‘add to basket’ feature

###Objective:
Recruit new customers to Asda GHS through quality content routes. Increase monetization opportunities

###Activity: Email, SEO,

###Campaign dates: July 2013 - Present

###Performance:
• 1.3 million visits since launch (average of 6,058 visits per day)
• 38.4% visits from desktop, 35.5% visits from mobile and 25.7% visits from tablet
• Cheats lasagne is the most viewed recipe
• Risotto is the highest search term on site
• 9.5K adds to basket via “Foodity” (approx. £95K sales)
• ‘healthy recipes’ is highest PPC traffic driver
• ‘asda recipes’ is highest SEO traffic driver

###Learnings:
• Needed more content at launch – only 200 recipes identified and added
• Didn’t exhaust all internal sources of content from the outset – 1,600 recipes available now being added
• SEO strategy is key. Currently “not” competing against some of the bigger providers; e.g., BBC. Site needed to be built with a greater SEO focus
• “Budget needs to be secured to maintain momentum. Budget for the project was pulled in the quarter following launch which has negatively impacted growth”


***Convenience – mobile app***

###Proposition:
Allows customers to shop on the go through their mobile app. Customers can also create shopping lists and check local store information as well as a number of other key features.

###Campaign objective:
50% of Asda customers own a smart phone and currently 15% of all grocery orders are placed on mobile. This campaign was used to promote our award winning app and encourage download.

###Activity: Display, onsite marketing, email, bus media

###Campaign dates: Week 10 – 18

###Total campaign investment: £130,598

###Performance:
• Downloads: iPhone 98,460; Android 137,936; Total 236,396
• Download attributed to marketing: iPhone 7,254; Android 18,640; Total 25,894
• % downloads attributed to marketing: iPhone: 7%; Android: 14%; Total: 11%
• % uplift on run rate: iPhone:+2%; Android: +5%; Total: +4%

###Learnings:
• Campaign was successful in encouraging customers to download the app. However most did not go on to use it. Therefore a robust CRM programme needs to be developed to make the most of these customers and nurse them through the sales process.


***Convenience – 11pm cut off***

###Proposition:
Enabled customers to make and amend orders up to 11pm on the day before order

###Promotion: Added to BAU messaging hierarchy

###Channels: Asda.com, onsite, banners and emails

###Live date: October 2012

###Performance:
• Adds around 4-5k additional orders each week from orders placed in the hour between 10pm and 11pm as well as additional basket items.

###Learnings:
• Not a campaignable message – but strong as part of the BAU message matrix.
• Good message for recruiting new customers as well as retaining active customer.


***Add to basket Convenience – Receipt tool update***

###Proposition:
Enables customer to start their shopping by using a previous till receipt. Customer adds in the 14 digit barcode

###Objective:
• Make it easier for customers to start shopping online
• Increase basket by providing the ability to add a full shop in

###Performance:
This year so far (1st January – 15th April 2014):
• There have been 12,529 successful receipt uploads over this time, around 0.07% of all Visits to the site
• Add to basket from the tool is low with only 399 cart additions, this is 0.0002% of all cart additions

###Learnings:
• The initial receipt tool required you to log out once you’d added your receipt number and could sometimes take over 24hrs to update your favourites.
This was a big drop off area for first time shoppers and an inconvenience.
• The revised tool now allows customers to add and shop immediately – however adding the 14 digit barcode is still not completely user friendly and
uploads are inconsistent.
• New functionality from H2 will allow the customer to scan their receive as well as import from competitor accounts which should improve setting up the first basket and aid switching, both from in-store as well as competitors.


***Add to basket Convenience – Onsite messaging***

###Proposition:
Enables us to shown targeted messages to customers based on their profile, segmentation and behavior. Enhances the way we communicate to customers for service and marketing led messages.

###Objective:
Increase performance of marketing activity through targeted messages. Increase the level of engagement with service messages

###Performance:
• Week 9 - 2.93% of all visits to the Groceries desktop site interacted with the Onsight Messaging (OSM) message box in Week 9 (45,436 Visits).
• "Week 13 - £1 Delivery Slots overlay message was seen by 58,871 customers. 40% of those who saw the overlay message used the cross in the corner to close it down, indicating that the remaining 60% clicked through to the ‘Book Slot’ page. “The conversion rate of delivery slots booked/Visits who saw the overlay message was 58% for those who saw the Overlay message versus only 21% on average for those who did not see this specific overlay message.”

###Learnings:
• Onsight Messaging (OSM) is a great CRM tool which has helped us to maximize the opportunity for communicating with customers in a relevant way.
• We see increased interactions with the Onsight Messaging (OSM) message boxes when more new
messages are put live indicating that customers generally only look in the message box if they are prompted with the flag to say they have a new message.
• The level of messages being deleted from Onsight Messaging (OSM) message boxes is relatively
consistent and therefore it appears a sub-set of customers will always delete messages after reading them whereas others will just leave them to disappear automatically on expiry.


***Mobile app Campaigns – GHS 2012; Picked, packed, delivered***

Campaign: General promotion of grocery home shopping

###Objective: Raise awareness of the services and the benefits. Acquire new customers

###Activity: Display, leaflets, online marketing, email, in-store

###Learnings:
• Good to use colleague in the artwork
• Catchy headlines work for the customer
• Opportunities to communicate several
messages related to the proposition through the various channels.


***Mobile app Campaigns – GHS 2012; Your grocery shop made easy 2012***

Campaign: General promotion of grocery home shopping

###Objective:
Raise awareness of the services and the benefits. Acquire new customers

###Activity: Display, onsite marketing, email

###Learnings:
• Delivery from £2.50 was a strong message for new customers.


***Campaign – Delivery Pass***

###Proposition:
Pay a fixed amount upfront and then have unlimited home deliveries for a set period of time: £5 for 1 month of groceries home deliveries

###Campaign objective:
• Protect – retain our customers by offering the best value in the market for delivery
• Acquire new customers
• Switch – encourage customers who shop elsewhere to switch to Asda to benefit from the fixed delivery price as well as all the other value metrics we’re famous for.

###Activity: Display, onsite marketing, email, onsite messaging

###Campaign dates: Weeks 35-38 (29 August – 13 September)

###Total campaign investment: £150k

###Performance: 100,000 passes sold in 2 weeks


***Campaign – Delivery Pass***

###Proposition:
Pay a fixed amount upfront and then have unlimited home deliveries for a set period of time across all online formats (Groceries, Direct and George.com, an Asda affliated entity): 3 month delivery pass at a market leading price of £15.

###Campaign objectives:
• Protect - retain online shoppers throughout Q4 and drive uptake of ASDA.com delivery pass
• Switch – engage customers who use delivery passes with our competitors.
• Cross sell - migrate Grocery Home Shopping (GHS) shoppers to shop General Merchandise throughout Q4 through purchasing the asda.com pass

###Activity: Display, onsite marketing, email

###Campaign dates: Week 39 – 44 (26 Sept – 31 Oct)

###Total campaign investment: c£300K

###Performance
• 112,373 delivery passes sold
• 92% 3 month vs 8% 1 month

###Learnings:
• The campaign was most effective for targeting existing customers
• c10% of DP customers were new customers
• The pass appealed primarily to grocery home shoppers with very few cross shopping to General Merchandise and George.com (Asda afliated entity)
• The delivery pass increases frequency of shop
• Encouraging new customers to take out the delivery pass can support conversion to 4th shop



***Campaign – Click & Collect Awareness***

###Proposition:
• Awareness campaign for Click & Collect

###Campaign objective:
• Raise awareness of the service
• Acquire new customers

###Campaign dates: Week 9-15

###Total campaign investment: c£900k

###Performance:
• Total Reach: 7.2 Million with a freq. 2.3
• Total Traffic: 26,815
• Total Sales: £144,169 (View & Click)
• Total Sales Click and Collect: 7,832 (5% of Total Sales)
• Best creative: Generic Click & Collect had the strongest conversion rates @ 6.35% Click & 2.18% View (worth noting however it also accounted for 47% of impressions)

###Learnings:
• Campaign disjointed due to differing creatives by the various channels.
• Work underway to create a single identity for Click & Collect across all media channels through a key strategic brief due in Summer 2014.


***Campaign – #SaveSummer***

###Objective:
• Drive social engagement with mums over the summer holidays
• Communicate awareness of convenience of grocery home shopping for mums
• Position Asda as a provider for mum over the holidays with a number of key activities mums could do with children

###Activity: Social, high impact display, PPC, online, email, blogger outreach, mumsnet, YouTube

###Live date: July - August 2013

###Performance:
• Total traffic to #SaveSummer throughout the campaign was 95,000 visits
• Average of 3.6 page visits
• 17,000 visits went on to the groceries website and placed 557 orders
• Angry Water Birds got 2nd highest visits due to 7% CTR on in-app ads.
• Rainbow Pancakes achieved the best CTR from Save Summer page to groceries site (43%)

###Learnings:
• Successful campaign in driving social interaction through Facebook and the website
• Successful integrated campaign that changed the way we pulled together campaigns and worked with new media channels to deliver it. Biggest successes were teaser campaign, social media and display formats
• Challenges were from other competitors who were running similar campaigns and executing on TV and in press.
• Although successful for interaction, sales from the campaign were limited.


***Campaign – Delivery Pass Price Lock***

###Proposition:
• Pay a fixed amount upfront and then have unlimited home deliveries for a set period of time across Grocery Home Shopping (GHS), Direct and George.com).
• 3 month delivery pass at a market leading price of £15. Plus auto-renew to fix your 3 month pass at £15 for the rest of the year.

###Campaign objective:
• Acquire – secondary objective of the digital campaign – but primary for ATL activity.
• Protect – retain our customers by offering the best value in the market for delivery.
• Switch – encourage customers who shop elsewhere to switch to Asda

###Activity: Display, onsite marketing, email, onsite messaging

###Campaign dates: Week 2-7 (Jan 10th – Feb 10th)

###Total campaign investment: c£870,000

###Performance:
• 121k DP Sales (versus plan of 120K) and +26% vs the Q4 promotion
• Auto renewal rate of 80% (versus plan of 75%)
• Drove c£15m in incremental sales in Q1 – most notably amongst our Active 4-6 orders segment

###Learnings:
• Delivery pass remains popular with our most loyal actives with 64% of our frequent actives shopping on the pass
• The passes appeal was predominantly within our active base - less than 1 in 12 new and infrequent actives (<3 shops) have taken out a pass
• Auto-renewal was auto opt in with 72% of customers choosing this.