In this section
Our Sustainability Plan
Annual Report 2016
Customers are at the heart of our business and for our future success we need to understand what they want. We talk to customers regularly to get a detailed picture of how they shop with us across all our channels and to find out what they value, how their needs are changing and how we can serve them better.
This insight, combined with great products, a brand that people trust, the right retail space in good locations and technology that helps us deliver what our customers want gives us a competitive advantage, now and in the future.
We take every opportunity to talk to our customers through face-to-face, telephone and online conversations. Focus groups and accompanied shopping with customers in our stores help us understand what people want when it comes to products, service and values. Trolley Talk, our new online customer panel launched in September, enables us to reach around 4,000 people online every week. The insight we gain helps us identify what is important and we can action change quickly and effectively. For example, Trolley Talk highlighted that the price dairy farmers are paid for their milk was a concern to many people. As a result, we took the initiative to advertise that we pay our farmers a higher price for milk than many of our peers. We also get valuable feedback from store colleagues and through our customer Careline.
To make the most of our opportunities for growth, over time we are investing in ways to become increasingly effective in our customer interactions, giving them a smoother shopping experience such as through mobile ‘scan and go’.
Our Nectar loyalty scheme is the source of much of our insight and gives us an important competitive advantage. Nearly 15.5 million Nectar card holders shopped with us during the year – in-store, online and through Sainsbury’s Bank – giving us valuable information that increases our knowledge of how our customers are shopping and interacting with us.
With Nectar and coupon-at-till technology, we are able to reward customers in a targeted way, and this increases loyalty to Sainsbury’s. Customers who shop all our channels spend more than twice as much as those who only shop for food in our stores. During the year we sent 35 million personalised mailings to Nectar card holders, using their shopping preferences to offer vouchers and other special offers for the products they want to buy.
In October, we announced changes to the way customers earn Nectar points, with customers accruing one instead of two points per £1 spend from April 2015. As part of this we are re-investing in the scheme by launching a programme of high-value bonus events, like 10x points on fuel that will help customers’ points go further.
Our values guide us in everything we do - from key decisions to day-today activities.
Our Sustainability Plan shows our journey addressing the challenges and opportunities not only relevant to our business but also to the world.
© J Sainsbury plc 2016