We’ll be talking a lot about Co-op Membership, in the company of many of our members, at our Annual General Meeting tomorrow. We’ve also just had a retrospective where leaders from across our business got together to look at Membership. We reminded ourselves of what we originally set out to achieve, evaluated our progress and discussed what’s gone well and areas we feel we can improve on.
This seems like a good time to talk about where we’re at.
A good start
We launched the new membership scheme back in September last year and we’ve been blogging about the progress we’ve made since.
In January, we posted about our ambition: we want 1 million new members this year. Last week, Mike Bracken announced that we’ve reached 850k new members. It’s been a fantastic team effort to get to this point.
Members have earned over £45 million from the 5% they get back by buying our own-brand products and services. They also earn 1% for local causes and since September they’ve accumulated £9 million. Last month we gave that £9 million to over 4,000 local causes across the UK.
And it’s not just about new Membership. We’ve also reconnected with our loyal existing members. Since September, almost 1 million of our existing members have started to use their cards again. This means we now have 4.5 million active members trading across all our businesses.
You can see how membership is doing here.
But there’s still room for improvement
We’re pleased with what we’ve achieved over the past 8 months but there’s still much more to do. We’ve been listening to feedback from colleagues, members and customers along the way so we can continue to improve things. We do regular user research and retrospective reviews to make sure we’re continually building a membership scheme that works for our members. This is reflected in our service map that Jack blogged about recently.
Just 7% of members chose a local cause during the first 6-month cycle
Members love the idea of choosing a local cause to support with the 1% they earn on own-brand purchases, but they’ve also told us that choosing a cause needs to be easier.
The team has been working hard to make it simpler on the website. We’ve iterated our design in line with learnings from research and the rate of members choosing a cause has increased by over 10%. We’re now looking to make choosing a cause simpler and more accessible in store.
There’s some confusion around reward structure
We found that people get confused when a loyalty scheme rewards them with ‘points’. They ask: ‘but what are they worth?’ To make things simpler, Co-op rewards are shown in pounds and pence. But, because Co-op members are rewarded in 3 ways (dividend points, the 1% community reward and the 5% member reward) there’s still some confusion with members around how much they’ve actually earned and how to spend it.
We’ve been doing trials in store to make it easier to understand what the 5% means in terms of value by highlighting receipts, printing coupons with value and changing labeling on the shelves. We’ll be looking at making our communications simpler through things like member pricing and member baskets.
Not enough temporary member cards are fully registered
At the moment, customers can pick up a temporary card in store and start collecting rewards immediately. Then they need to register their temporary card online to become members and to be able to use their rewards. Not as many people are doing that as we’d like so we’re looking at how we can make it easier to do the whole thing in store.
We’ve been testing different options and will be running more pilots in June including use of in-store tablets and SMS messaging. We have also been considering how we take the £1 share payment. This is a really important step to be recognised as a member and we need to make it easier.
Helping more members have their say
When you’re a member you have the chance to influence what we do and how we do it by joining in. The membership website offers opportunities to ‘Get involved’. Recently, members sampled our new beers and wrote the tasting notes – a great example of the Co-op difference! Although we’ve seen some fantastic involvement from members, we think we can do more to help them find out about the opportunity in the first place.
We know that most involvement has been from new members, aged under 30, who have seen the ‘Get involved’ section of the site when they’ve completed registration. We’re looking at how we can display these opportunities in the right places to make them much more easy to find for all members.
Where we’re going from here
We’ve been listening to colleague, member and customer feedback as we’ve been going along so we can make improvements. We’ll never stop doing that. Next we’ll be thinking about new products and services we can launch, and we’re developing a plan as to how we’ll better meet our members needs on mobile throughout the rest of the year.
This is just the start. There’s a lot more to come.
Director of Membership Products and Services