Asda sustainability research – our customer insight Laura Babbs
Contents
Little introduction to Asda Our vision Customer panel Customers and sustainability Customers and products Customers and timber
We’ve got history Founded in 1960’s in Leeds, where we’re still head quartered We’ve got scale Over 180,000 Asda colleagues Over 560 stores We’ve got reach Over 18 million shoppers served per week in store Over 98% of UK homes served through our home shopping business
About Asda
Our sustainability vision
We believe sustainable living is for everyone, no matter who they are and what their income.
Our business is committed to delivering great value at everyday low prices. For us, sustainability is part of that value. We’ve worked hard for many years to reduce our environmental impacts and, as a result, our costs. We’re listening to what our customers care about and they want us to help them lead greener lives.
Asda customer panel 37%
63%
68% primary, 32% secondary shopper
10%
2%
6%
82%
20,000 customer panel, with average response rates of between 6-9,000 responses
Presenter
Presentation Notes
Panel was started 3 years ago to make sure that customers were at the heart of everything that we did Panel has grown from 6k customers to 20k customers There is an average response rate of between 6-9k (this is massive for a panel like this – usual response rate is 20% or less 2/3 female, 1/3 male 1/3 secondary shoppers – people that don’t do their main shop at Asda but may occasionally visit
I expect to be greener in the future
I set the sustainability agenda
I shop green
Green is normal
The green choice shouldn’t cost more
Customer know their minds
Presenter
Presentation Notes
Green is normal – 90% of customers care and 21% care very much about being green. This has stayed consistently above 90% throughout the whole 3 years. Customers care no matter what their income level – DE customers care more than A customers I shop green - Customers continue to shop green 92% have bought a green product in the last month. Top three important issues to customers are - Local, fairtrade and products with recyclable or reusable functionality. IMPORTANTLY – need to make sure that we don’t push our perceptions of sustainability on customers. Means different things to different people so need to infuse what the experts think with customer insight. I set the sustainability agenda – customers want their voices heard in the sustainability agenda. 81% talk to their friends and family about living green and 76% question where their food comes from I expect to be greener in the future – 78% believe that environmental problems have a direct impact on their daily lives and 97% of customer are encouraged to do things to improve the sustainability of their lives. As they are making changes to the way they act they are expecting business to as well. They imagine we would be getting on with changes to make our business and products more sustainable. IMPORTANTLY – customers won’t pat you on the back for doing this work but you are likely to get a rap on the knuckles if you aren’t doing anything. The green choice shouldn’t cost more – sustainability is normal and everyone is doing it so customers don’t want to pay a price premium. Price and perceived price are the main barriers for customers not acting more sustainably. Although sustainability issues are important issue to customers – price and quality are still the most important drivers for customers. Sustainability is part of the marketing mix but shouldn’t be considered alone.
Products, products, products
• Green effects buying decisions in some areas but not others
• Local sourcing is the most important issue for customers
• Confusion around sustainability terminology
• Customers are the least interested in sustainability issues related to clothing, home, garden & DIY
Presenter
Presentation Notes
¾ of customers tell us that sustainability effects their buying decisions to some extent. But this is still ranked below price and quality. Interestingly product country of origin was ranked extremely high and just above promotions. It is clear that local sourcing is extremely important to customers. There is much confusion with customers – interestingly “not tested on animals” which is commonly associated with the health and beauty categories had customers stating that this was an important issue in meat & produce categories. Customers are obviously concerned. Customers are much more removed from sustainability issues relating to GM
Timber
91% of customers agree that wood and paper based products should be sourced from sustainably managed forests
90% of customers think that packaging should be sourced from sustainably managed forests
59% of customers think products sourced from sustainably managed forests should have an independent product label
A word of caution
What does this mean for you?
This is not a fad or trend our customers expect to be greener in the future
The vast majority of people care about sustainability
Messaging needs to be clear and consistent – there is already confusion around terminology
Need to be cautious around what customers say and what they buy
Timber sustainability is important to customers however, this ranks below other retail sustainability issues
