Tesco - Delivery Saver
Summary
Delivery Saver is a tiered subscription of three plans offering various benefits including free delivery. Our focus was to increase acquisition and retention internationally.
Business benefits
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Subscribers shop 14 times more per year than non subscribers
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Top tier customers spend £1300 more a year than non subscribers.
Customer benefits
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Customers save £176 a year compared to non subscribers.
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Customers get other benefits including early access to delivery slots
Achievements
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In 2023 we reached 690k subscribers, up YoY by 15,000. Those subscribers let to £14 million in sales.
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We beat our target retention rate of 75% by 15%, retaining 90% of subscribers despite migrating 650k legacy customers onto new plans.
Developing a strategy
I arranged a number of sessions for us to analyse the product lifecycle looking at problems and opportunities. From these sessions we decided that whilst awareness was low, we would first work to strengthen the current experience before targeting new subscribers. Outcomes included:
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Improvements to the sign up journey
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Landing page redesign
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Cancellation survey and incentive
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Surfacing Delivery Saver in app
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Driving more traffic to the microsite
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Successful rollout of Delivery Saver internationally
"Tesco do subscriptions? Oh! I didn't know that."
Improvements to the sign up journey
Landing Page
During analysis of current journeys, the landing page was highlighted as being a potential problem. Less than 2% of users who arrived on this page continued to sign up.
The page was lacking a clear introduction to the proposition and was very functional, so redesign focused on:
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Clearly stating the proposition
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Highlighting potential cash savings
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Explaining benefits of each plan in simple terms
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Ordering benefits to be relevant to each plan
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Removing duplication of content
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Adding space for supporting copy of key benefits
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Highlighting the Delivery Saver Guarantee
After successful A/B tests showed a 5% increase of sign ups, and will be rolled out to 100% in Q1.
Subscription management
New and existing customers are able to change the details of their plan in the 'My Plan' page. This was a long, outdated page that lacked hierarchy and clear calls to action, so I created two new designs for the page.
The idea of the new layout was to bring value to the forefront. We want to help customers understand their monetary savings and therefor feel confident that having their subscription is benefiting them.
The first iteration was an MVP approach mainly focused on changing the layout using existing functionality and API date. This update was rolled out in Q2 2023.
The second iteration was a stretch goal for the squad and relied on back end improvements. Due to a shuffle of developer resource, we were unable to get this design out built in 2023, but it is ready in the backlog to go!
Delivery Saver in-app
The Delivery Saver proposition was initially developed as a web initiative. Because of that, there is very little mention of it in app. We looked to improve that in 2023.
Personalised advertising in-app
Cross squad collaboration is something which is very important to me. For this project I worked with a UX designer in the slots team. Together we came up with a series of adverts for testing.
This ran as an A/B test in two stages. The first was a generic advert that aimed to direct customers to the main proposition, and the second test was to surface a dynamic advert personalised to the slot the customer had booked. As expected, the personalised advert was the most successful and it due for rollout by Dec 2023.
Managing account in-app
The account menu in-app had never surfaced Delivery Saver and we felt this was a missed opportunity. We ran an A/B test to surface potential savings to customers in the account space.
Content would change dynamically depending on the customers account details. Customers with a subscription could manage their plan, and customers without a subscription would see their potential savings and a link to sign up.
After successful rollout, we saw an increase in sign ups by 30% for this year, driving £1.7m in sales and £38k in profit.
Awareness
After work was completed to strengthen the Delivery Saver subscription, we then looked raise awareness. The acquisition journey starts with awareness, so I facilitated a workshop to improve the surfacing of Delivery Saver throughout the shopping journey.
Problem Statement: Delivery Saver sign-up is too separate from the shopping journey to raise awareness of the proposition.
Current journey analysis
Four teams looked at the current shopping journey for various scenarios with a task to the following questions:
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Where is Delivery Saver surfaced now?
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Are the current methods effective?
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Where could Delivery Saver be surfaced in the future?
This was to be a scattergun approach to look at all possibilities and over 100 ideas came out of this session.
Storyboarding
Groups took all the ideas from the playback and began storyboarding the 'perfect journey'. Thinking holistically about the end-to-end experience and selecting the most appropriate ideas we came away with three very different approaches to test.
Prioritisation
Ideas were separated in to two phases: Short term - those ideas we could start of develop immediately, and long term - concepts that we could begin to test in 2024.
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Retention
What we achieved
We beat our target retention rate of 75% by 15%, retaining 90% of subscribers. We ended 2023 with over 680k subscribers, driving an estimated £14m in incremental sales over a full year.
Cancellation survey
As part of a customer retention initiative I wanted to know why customers were cancelling their subscription. Call centre feedback had very little information and it seemed as though customers were happy but yet we still had cancellations. We introduced a survey on the cancellation page to ask customers to let us know why they were leaving. We let this run for several months to collate as much insight from it as we could. The feedback from these forms drove the following initiatives:
Short term discount
For those customers who were cancelling for cost reasons, we introduced an incentive as part of a trial. When users clicked on the cancellation page, they were offered the equivalent of either one month or two month off their next plan, depending on the test groups. We wanted to see if the financial incentive was enough to retain subscribers.
Switch plan
Cancellation surveys showed that a proportion of subscribers simply cancelled their subscription because their shopping habits changed to in-store from online (possibly following the pandemic). In this situation, we created the concept of a 'quick switch' to allow customers to move straight to the in-store subscription called Clubcard Plus, which could save them up to £480 per year in store. This concept is in the backlog ready to go when developer resource becomes available.
CE Online Club
Tesco operates in Central Europe. They have a new subscription called Online Club. Customers get free delivery for a monthly fee. I helped them get more subscribers by running workshops and designing a sign up journey including a free trial.
It's doing great. We got 12,000 extra subscribers, in 3 months onto a free trial, with a 60% retention rate. The new customers have shown a 50% increase in sales, totalling an income of just under £200,000.
More information to come.
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