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FRi™ - A TESCO story.


A Tale of Three Uncrowds

Are Tesco right to reduce fresh counters and ditch the delis?

Here we apply the Uncrowd Friction/Reward Indexing crystal ball to the question. At the same time; let’s see which supermarkets, given equal convenience, win in each of three critical shopper missions

Single Person
[One meal mission]

Uncrowd A

Habitual
Craves Inspiration
Brand Sensitive
Prefers Premium
Price Insensitive
Family
[Big weekly shop]

Uncrowd B

Value Focused
Socially Aware
Meals Focused
Value Fresh
Price Sensitive
Working Parent
[Top up shop]

Uncrowd C

Craves Inspiration
Socially Aware
Value Fresh
Time Poor
Price Sensitive

Building CX by Emotion Segment

Humans are an emotional and need-driven bunch, we love a post-rationalisation for buying cake. We didn’t buy cake because we’d completed 10,000 steps. We bought cake because we like how it makes us feel.

Here, we wrap biases and emotions and needs up into what we call: UNCROWDS.

An Uncrowd is a segment of shoppers grouped by how their emotional messes drive their shopping behaviours.

A:
Apply an Uncrowd to a Shopper Mission
B:
Bring out the frictions and rewards in context
C:
See how real people really shop
D:
Develop CX props to exploit the Uncrowds

Tesco NOW

A green FRi™is a good FRi™– the friction and reward landscape currently

Single Person
[One meal mission]

FRi:
2.38

Friction

-2.52

Meals
Core brands
Choice/range
Trust
Payment
Contactless
Physical access
Wayfinding
Queuing
Information
Reward

-0.14

Brands
Discovery
Product quality
Trust
Food to go
Service
Reward scheme
Localism
Curation
Personalisation
Transparency
Destination store
Retail theatre
CSR
Price actual
Family
[Big weekly shop]

FRi:
0.51

Friction

-1.39

Meals
Trust
Choice/range
Payment
Wayfinding
Contactless
Physical access
Returns
Core brands
Communication
Queuing
Information
Reward

-0.88

Price actual
Reward scheme
Trust
Localism
Product quality
Destination store
Discovery
Brands
Service
Transparency
Food to go
Curation
CSR
Personalisation
Working Parent
[Top up shop]

FRi:
2.06

Friction

-2.45

Wayfinding
Physical access
Trust
Meals
Choice/range
Core brands
Contactless
Payment
Queuing
Communication
Returns
Information
Reward

-0.39

Product quality
Localism
Discovery
Trust
Food to go
Destination store
Reward scheme
Service
Curation
Personalisation
Brands
Transparency
Price actual
CSR
Store format: larger/main   |   BROWN Friction lines: bigger means EASIER   |   GREEN Reward lines: bigger means BETTER

Tesco vs Rivals

Single Person
[One meal mission]
Co-op refers to The Midcounties Co-operative
Family
[Big weekly shop]
Co-op refers to The Midcounties Co-operative
Working Parent
[Top up shop]
Co-op refers to The Midcounties Co-operative
Single Person
[One meal mission]

Waitrose is great; I can easily pull together everything for my evening meal and there’s always something interesting and new to try. I trust them. Co-op too. Dependable choices. I appreciate Tesco for fresh and the classics.

Family
[Big weekly shop]

Now we’ve found Lidl, we’ve not looked back. Aldi and Morrisons are good but Lidl is full of inspiration, the value is incredible and we always come away with a week of meals and plenty of treats within budget.

Working Parent
[Top up shop]

We get store-cupboard basics delivered in and have an Amazon subscription for non-grocery household. Then it’s Waitrose for the quality, variety and fresh. Co-op and Morrisons are easy for the last minute top-up.

What happens when Tesco drop/reduce fresh and deli?

Tesco are in panic reduce-costs mode. Rather than invest, the leaked Dave Lewis strategy for counters appears to be some good old slash and/or burn. Yeah the grannies and the gramps are going to go apoplectic with rage when they can no longer buy half a slice of ham but what about our three Uncrowds?

With the Proposed Changes

So much bad red it hurts. But does it matter?

Single Person
[One meal mission]

FRi:

0.82

(-1.56)
Friction

-1.76 (+0.76)

Core brands
Meals
Choice/range
Trust
Payment
Store layout
Physical access
Contactless
Wayfinding
Queuing
Information
Reward

-0.94 (-0.8)

Brands
Product quality
Trust
Discovery
Service
Reward scheme
Food to go
Localism
Transparency
Curation
Personalisation
Retail theatre
CSR
Price actual
Destination store
Family
[Big weekly shop]

FRi:

-0.58

(-0.8)
Friction

-0.91 (+0.48)

Meals
Trust
Payment
Choice/range
Contactless
Wayfinding
Physical access
Returns
Core brands
Communication
Store layout
Queuing
Information
Reward

-1.49 (-0.61)

Price actual
Reward scheme
Trust
Localism
Product quality
Brands
Discovery
Destination store
Service
Transparency
CSR
Curation
Food to go
Personalisation
Working Parent
[Top up shop]

FRi:

0.47

(-0.61)
Friction

-1.74 (+0.71)

Wayfinding
Physical access
Trust
Choice/range
Core brands
Contactless
Payment
Store layout
Meals
Queuing
Communication
Returns
Information
Reward

-1.27 (-0.88)

Product quality
Localism
Trust
Discovery
Service
Reward scheme
Destination store
Transparency
Food to go
Brands
Curation
Personalisation
Price actual
CSR
Store format: larger/main   |   Friction lines: bigger means easier   |   Reward lines: bigger means better

Stripped Tesco vs Rivals

Some chunky slides there but only really hurts in the Single Person Uncrowd

Single Person
[One meal mission]
Co-op refers to The Midcounties Co-operative
Family
[Big weekly shop]
Co-op refers to The Midcounties Co-operative
Working Parent
[Top up shop]
Co-op refers to The Midcounties Co-operative
Single Person
[One meal mission]

I’m definitely going to miss fresh counters and deli, they were a big part of my reasons to go to the big Tesco. I guess that’s Morrisons on standby now?

Family
[Big weekly shop]

To be honest, we’ve not gone back to Tesco since defecting to Aldi. We probably wouldn’t have even noticed the fresh changing.

Working Parent
[Top up shop]

Tesco used to be ahead of Lidl for me but now there’s no real difference in the fresh and premium stuff then I can’t see much point in going to Tesco.

What Happens if Tesco Invest Instead?

The hipsters, middle-class parents and good old Jamie Oliver will go all warm inside if instead of stripping out, Tesco invest. Click + Collect Deli. Sampling. Cooking. Meal Inspiration. Order through Touch. Robot Delivery to Trolley. Cor such fun. Alibaba would… and maybe us ordinary folks might like it too?

After Investing in Counters

Goodness greenius us!

Single Person
[One meal mission]

FRi:

5.00

(+2.62)
Friction

-3.12 (-0.6)

Meals
Core brands
Choice/range
Trust
Payment
Contactless
Physical access
Wayfinding
Queuing
Information
Reward

1.88 (+2.02)

Discovery
Food to go
Brands
Product quality
Trust
Curation
Service
Reward scheme
Localism
Personalisation
Transparency
CSR
Destination store
Price actual
Family
[Big weekly shop]

FRi:

2.08

(+2.02)
Friction

-1.88 (-0.49)

Meals
Trust
Choice/range
Payment
Wayfinding
Contactless
Physical access
Returns
Core brands
Queuing
Information
Reward

0.2 (+1.08)

Price actual
Reward scheme
Trust
Discovery
Destination store
Localism
Product quality
Curation
Brands
Service
Food to go
Transparency
CSR
Personalisation
Working Parent
[Top up shop]

FRi:

4.20

(+1.08)
Friction

-3.02 (-0.57)

Wayfinding
Meals
Physical access
Trust
Choice/range
Core brands
Contactless
Payment
Queuing
Returns
Information
Reward

1.18 (+1.57)

Discovery
Product quality
Food to go
Curation
Localism
Trust
Destination store
Reward scheme
Personalisation
Service
Brands
Transparency
CSR
Price actual
Store format: larger/main   |   Friction lines: bigger means easier   |   Reward lines: bigger means better

Improved Tesco vs Rivals

Single Person
[One meal mission]
Co-op refers to The Midcounties Co-operative
Family
[Big weekly shop]
Co-op refers to The Midcounties Co-operative
Working Parent
[Top up shop]
Co-op refers to The Midcounties Co-operative
Single Person
[One meal mission]

Loving the inspiration and fun I’m seeing at Tesco now. They’re getting a much bigger share of my spend these days because they help me create more exciting meals.

Family
[Big weekly shop]

Tesco is nicer now and we’ve gone a few times; the deli especially is much easier and more relevant to us now. But Lidl, Morrisons and Aldi still get the lion’s share.

Working Parent
[Top up shop]

The Tesco click and collect counters are amazing, I can get fresh butchered meat without any waiting. Tapping out for goodies on the tablets is brilliant as well.


Thoughts with Hammond

I’ve thrown a load of thoughts, explanation and detail into the video below. Have a watch, there’s gold in there. Not least is the realisation that using FRi™to understand Tesco’s relationship to these three critical shopper missions provides them with a kind of magic trick – it’s profound actually and that’s the ability to see into the future.

See the Future? How?

Identify Rivals: FRi™ shows which retailers are the preferred choice for a given shopper mission and Uncrowd segment
Change Lag: Status quo bias, loss aversion and trends lag mean that actual customers will take their time defecting to those rivals
Future Defection: But they will defect as they become more aware, trial the alternative and get comfortable with change
Timely Insight: BUT! FRi™ shows and explains exactly how and why this will happen
Change Early: SO! The retailer gets to see NOW what changes they must make to keep existing customers happy
FRi™ buys you time. It buys you an unfair advantage.
See the future, change the future!
Get your unfair Uncrowd FRi™ Analytics platform advantage now!
Send me an email to richard@uncrowd.uk or use this form

Applying Uncrowd FRi™ to your business

Here’s a handy guide
(click to make the tiny into the big)

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