Ocado

   
  • Which: Needs Based
  • Where: Channel
  • Result: Shifted

Ocado was one of the first online-only grocery stores and has delivered excellent customer service by developing a logistics operation with 99.9% accuracy. The result is customer loyalty, and a growing customer base.

Making it easy

We all need food. But many of us don’t want the experience of traveling to a supermarket, walking the aisles, waiting in line ... you get the idea. Backed since inception in 2002 by UK supermarket giant Waitrose, Ocado is an online-only grocery store, now well-established in the UK market. Ocado boasts one million registered and 150,000 active users, receiving 12,000 grocery deliveries daily. In 2008 Ocado reported a twenty five percent increase in sales over the Holiday season and, since 2005, Ocado has won or featured highly in annual online food, and good service awards.

“Over time we will diversify. If we can get a Jerusalem artichoke to someone in good condition, then pharmaceuticals or health and beauty products or iPods should be really easy.”

Jason Gissing
Chief Financial Officer
Ocado

Ocado has always centered its business proposition on better service, delivering what the customer wants in way the customer prefers. Simply put, Ocado’s mission is to make customers’ lives easier, and to do that Ocado creates a personalized service on the internet. But the internet is the starting point of the shopping experience; fulfillment is where it’s at. Getting fulfillment right is a significant logistical challenge, yet Ocado continues to demand “better service!” of itself (as it encouraged customers in a recent campaign), through one hour delivery windows, packaging recycling, green van slots (customers can view and select vans in their area to reduce emissions), and weekly price matching with competitors. According to Greenstone, the carbon management consultancy, shopping with Ocado is now just as green as walking to your local supermarket.