"Our in-house software development allows for the rapid introduction of new functionality."

Connecting with customers

We continually focus on improving the retail proposition we offer to customers. Consumers are influenced by the attractiveness of the shopping experience and the way retailers engage with and service customers. There are two primary points of interaction with our customers – at the time of ordering on the customer interface (webshop or mobile app) and at the point of delivery. Our focus on improving the user experience at each of these contact points, along with each aspect of the service in between, ensures that we give customers a market leading proposition which drives growth, loyalty and spend. Recent customer satisfaction surveys suggest we are making progress in this area.

Ocado customer satisfaction

Ocado Customer Satisfaction

Source: YouGov BrandIndex 12 weeks to 18/11/13, Redburn

Service – the shopping interface

Shoppers are more inclined to use an online shop if it is relevant to that customer in terms of the ease of use and the quality of what is on offer.

Ease of use

Convenience is a major driver to shopping online. The service needs to be convenient, quick, reliable and easy to use. Ordering "anytime, anywhere" using the easiest of interfaces is very important.

Our in-house software development allows for the rapid introduction of new functionality, be it new website developments, the latest apps which are constantly updated for the latest operating systems (in 2009 we were the first grocer to launch a fully transactional app) or feedback mechanisms.

Shopping could not be easier from being able to order using a mobile device or computer from any location at any time of day with the click of a button, with the narrowest delivery time window in the market. Our latest developments include a shortened registration process for new customers, Facebook registration login facilities, and enabling customers to import their "favourites" from other retailers.

We aim to continue improving the shopping experience for our customers, and develop further capabilities to enable greater personalisation for each customer, enhancing knowledge of and access to our wide range of products, for example through improved recipe offerings and intelligent purchase suggestions.

Over 45% of sales are now transacted using mobile devices

Shopping anytime anywhere

"The product life of all our fresh food is guaranteed."

Range

Customers seek access to a wide choice of products and will be more inclined to shop online where choice, and freshness, is greater. Offering more of the groceries each customer desires in one store reduces the need for a customer to visit elsewhere to complete their weekly shopping.

Our current range of 34,000 SKUs makes us the most extensive grocery store today.

Ocado product range v peers

Ocado Product Range v Peers

Source: Companies, Redburn

We are continually increasing the number of product lines that we sell. Our operating model and the facilities that we use allow us to expand range relatively easily with limited stockholding exposure, enabling us to stock many specialist and niche lines as well as everyday favourites.

The expansion of some of our non-food categories – for pets (we now have a specialist pet store, Fetch),  the home, babies and children, health and beauty products for all the family, and gifts – further reduces the need for customers to shop elsewhere for all of their daily essentials, and increasingly little luxuries as well.

Freshness

As well as convenience, customers still want the freshest produce.

The product life of all our fresh food is guaranteed. Our model removes one stage of the grocery supply chain, as our stock is delivered directly to us by suppliers or wholesalers, which when combined with rapid stock turn means we often get product to customers the same or next day following receipt into our CFCs. This can be quicker than other supermarkets can get the product into their own stores. We offer a product guarantee giving confidence to customers that their groceries have a minimum remaining life when delivered.

Our range has grown to be the most extensive grocery store offering today

Offering the freshest products

"Consistent order reliability is essential for customers... 95.2% on time and 99.0% as ordered."

Prices

Our customers want to feel that they receive good value and can save money by shopping online.

The automation and aggregation of our model strips out costs and increases efficiency. These savings allow us to offer products at competitive prices.

We invest in price matching initiatives to give consumers confidence about the cost competitiveness of their basket of shopping when bought at Ocado. We work hard with our suppliers to provide to our customers market leading promotions, and now have a level of promotional activity to rival the biggest supermarkets. Our strategy of increasing the numbers of products with different price points in the same category, particularly driven by the growth of the Ocado own label, has continued to resonate well with customers.

Service – delivery into the kitchen

Our customers expect, and deserve, the highest level of service delivery. We seek to maintain the highest level of customer service, with our own Customer Service Team Members and fleet of delivery vans.

Reliability

Consistent order reliability is essential for customers. The combination of our centralised model and our proprietary software leads to unrivalled reliability with 95.2% on time and 99.0% as ordered. Our systems have evolved, following much iteration, to integrate and optimise all aspects of the order fulfilment process.

Availability

Customers expect high stock availability and minimal substitutions, within a short time frame. Our deliveries are available next day, with same day delivery possible in some postcodes. We offer one hour time slots seven days a week, and the widest number of slots available from 6:00am until 11:30pm.

Proprietary integrated systems give control over the product flow. This, combined with the scale of our CFCs, leads to higher product availability. This reduces the chances of products being out of stock and minimises substitutions.

Delivery directly into a customer's kitchen

Arriving on time