Trust and transparency key to earning ‘real’ customer loyalty

• Empowerment of consumers to help make key business decisions
• Entering into a new phase of openness and ‘behind the scenes’ access
• Building foundations for creative collaboration between business and consumers

At an event in central London today, Asda President and CEO Andy Bond outlined his vision for engaging with the new consumer in a bid to empower them, build their trust and earn their long-term loyalty. He said that the digital explosion and a sharp decline in trust in government and business has led to a new era of ‘democratic consumerism’.

Responding to the democratic consumer’s demand for more openness and transparency, Andy Bond described a new business model, where customers dictate the way companies do business and the products they sell. As a result, Asda today announced a series of business initiatives that aim to bring customers into the heart of the business and empower them to become active stakeholders.

Speaking at today’s event, Andy Bond said: “My ambition for Asda is to actively involve customers in every aspect of the business, to lift the lid on how we do things, and enable our customers to help make decisions that have an impact on what we sell and how we sell it.

“People already know they can trust us to deliver the lowest prices, but democratic consumerism is more than that. It’s about entering a new partnership, working with our customers rather than simply working on behalf of them.

He added: “Events over the past year mean that faith in big businesses is lower than it’s ever been – because people have stopped trusting what’s going on behind closed doors. So, from today, there is no ‘behind the scenes’ at Asda. Our aim is to be a truly open, accessible and transparent business so that we can rebuild trust, and drive customer loyalty. I firmly believe that customer loyalty cannot be bought with plastic points or discount vouchers, it has to be earned.”

Bringing democratic consumerism to life, Andy Bond today launched three commitments that he believes will bring customers into the heart of the business and symbolise the first step in Asda’s journey into a new phase of openness and customer empowerment:

Chosen By You:

This represents a new open-door policy at Asda, where anyone can get involved and where customers are consulted in every aspect of the business. Customers will be empowered to become core decision makers in the business, involved at each step of the process, from product development to the look and feel of packaging.

From January 2010, an existing community of 18,000 regular Asda shoppers will be given unique access to products before they go into store. They will have a big influence on purchasing decisions by being involved at the start rather than the end. Anyone wishing to join the panel should log on to: www.asda.com/yourasda

Your Asda:

This will become an access all areas window into the world of Asda; rather than telling customers about what’s happening behind the scenes in the business, Your Asda will show them.

To further enhance its website and to drive transparency, Asda today unveiled its new blog Aisle Spy, and introduced a number of webcams within its operations, including a dairy farm, carrot processing plant, and its head office Asda House in Leeds. The ambition is to reach a point where customers can trace the journey of every Asda product: from farm to fork or warehouse to wardrobe.

Asda also announced today it will open a new ‘transparent’ store in Gorseinon South West Wales next year. Screens will be placed on the shop floor showing wha’s going on behind the scenes, and glass walls will replace brick walls, giving a unique window into areas of the store normally kept out of view. Log on to

Bright Ideas:

From early next year, Asda will also reward the customer who comes up with the Brightest Idea that saves the business money. If their suggestion is implemented and saves Asda £2 million, they could be in line to receive a cheque for £100,000 – or five per cent of the first year’s saving. In the future, Asda sees part of its role as a successful business to be an ‘ideas factory’, and a company that thrives on translating people’s ideas – regardless of where they come from – into action.

‘Democratic consumerism’ was hailed today as a natural third stage in Asda’s democratic journey: in the 1960s, Asda helped democratise goods and services – by thinking big and breaking with the convention that manufacturers should set prices, Asda bought in volume and passed the savings on to customers. In the early 1990s, Asda democratised the relationship between its employees and the business by breaking down barriers between the management and the shop floor; staff became colleagues, information sharing became the norm and everyone shared in the business’s success through colleague bonus and share save schemes.

Today marks the start of a new democratic relationship between Asda and its customers, where customers are empowered to become active stakeholders in the business.

Posted by Asda press team on 01 October 2009, 10:39

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