Service Design workshops in Co-op Food

Last week we began a series of Service Design workshops with our Food business.
We’re working on a two week discovery phase by the end of which we’ll pick three projects to take in Alpha.

The project is being led by myself and Jo Whitfield the Finance Director in Food. We’re working with UsTwo as our service design partner. Importantly, as the unit of delivery is the team, our team is made up of CoopDigital, Food and UsTwo.

The team have visited stores, spoken to our colleagues, spent some time in a depot and with our call centre. We’ve been out talking to customers and members.

Picture of food service design discovery work
Food Service Design discovery

There’s lots to cover so we’ve been sketching user journeys with colleagues from every part of the business. We’re looking for clear user needs that will make things easier for members, customers or colleagues.

Picture of sketches from food service design discovery work
Outputs from a sketching workshop

As we believe in working in the open, we’ll blog about our progress on this blog.

Ben Terrett
Group Design Director

The way we pay

This week our colleagues in food published a report on how people like to pay in their stores. Contactless payments (the ones you make by tapping your debit card or mobile phone on a card reader) in our stores have trebled annually to 11 million transactions a month. 

March-2016

The Findings

  • Customers on average shop with us 19 times over 3 months
  • 65% of our transactions over the last year have been with cash
  • 11 million contactless transactions in March 2016
  • Average basket size using chip & pin £18.16
  • Average basket size using contactless is £8.66
  • 65% of shoppers think that in under a decade all they will need is their phone to pay for daily goods

“The new technology is perfect for convenience stores as shoppers buy fewer items and speed is important to them.”

Cheryl Marshall Co-op Retail CIO  

Over the last year 65% of Co-op food transactions used cash, but it’s expected that contactless payments on cards and mobile phones will overtake it within the decade. 

Our research found that average spend for contactless is £8.66, versus £18.16 using chip-and-PIN. What explains the gap? Perhaps security concerns with new payment mechanisms, or the increased familiarity of Chip-and-PIN over contactless methods. Or simply that many customers aren’t aware that the contactless payment limit was raised to £30 in September 2015. Research by payment systems manufacturer Verifone says that paying by contactless card is faster than chip and pin or cash, a strong pointer that contactless card and mobile payments will eventually be commonplace, making convenience shopping even faster and easier.

You can read our convenience reports in full here:

 

Co-op Electrical moves to CoopDigital

Co-op Electrical sells, as you’d expect, electrical goods online. From fridges and washing machines to iPads and TVs. It’s a great business with a turnover of £100M and  a Feefo rating of 98%.  That rating stems from a real co-operative sense of customer service –  discounts for members and free delivery for everyone with slots by the hour.

Co-op Electrical competes in a tough market with the likes of AO.com, John Lewis and Currys. The team work hard to deliver not only great customer service but consistently offer lower prices than competitors along with warranties at a cost price.

Currently Electrical sits within Co-op Food, but as it’s an on-line business it makes sense to run it from CoopDigital. Today we’re announcing that James and his team will move over to Digital and work under Mike.

James and the team have an ambitious plan to grow the business. We’ll help to speed that up, making Electrical a truly digital business – not just an online one. We’ll invest in service design, agile delivery and focus relentlessly on the needs of our customers and members.

Steve and Mike

Steve Murrells – CEO Co-op Food – @Steve_Murrells
Mike Bracken  – Chief Digital Officer – @MTBracken