Co-op brings in MullenLowe to overhaul digital strategy

The Co-operative is overhauling its customer marketing strategy to drive growth across the entire group and has appointed MullenLowe Group UK to spearhead the new push following a four-way pitch.

The IPG-owned agency, which will take over from incumbents Kin & Carta and The River Group, has a brief to create a fully integrated data-driven approach, including digital consumer marketing and “always-on” content.

The agency will start work in November, alongside lead creative agency Lucky Generals and media agency Dentsu and spearhead digital and content planning and execution for campaigns and ecommerce across food, insurance, funeralcare, legal and membership.

It is claimed that MullenLowe and Co-op have a set of shared values, including the “firm belief in the power of purpose to drive commercial and societal progress”.

Not that these values have always been apparent; last month, the retail giant courted controversy when its Southern division was accused of using “unlawful” facial recognition software in its stores, with claims that the technology is “infringing the data rights of a significant number of UK data subjects”.

However, the Co-op has at least managed to bounce back from its darkest days of 2013, when it was hit by a financial crisis. A year later it was forced to sell off a series of businesses to reduce debt, including The Co-operative Pharmacy, Co-operative Farms, cash transportation division Sunwin and its life insurance and pensions business.

The organisation’s digital overhaul began in 2015, when it brought in chief digital officer Mike Bracken, the former digital boss at the Cabinet Office and The Guardian, in order to re-invent the society’s digital operations and to drive efficiencies across the board.

Last year, the Co-op turned to the broadcast industry to appoint a head of CRM and customer experience, bringing in the BBC’s Phil Barker to spearhead a new “centre of excellence”. The move was part of the retailer’s plans to build its data and loyalty team, following the refresh of its membership programme and launch of the Co-op app last year.

More recently, the business has been bringing its divisions closer together through content design; for instance its funeralcare arm and legal wing are run separately internally but there are many areas, such as probate, in which they can work side by side, giving the content marketing team the opportunity to create a frictionless experience.

Co-op director of customer proposition and communications Mel Matson paid tribute to Kin + Carta and The River Group for “all their hard work and passion over the years” but added: “It’s clear Mullen Lowe share the same values and principles as Co-op, and we’re both committed in ensuring that we continue to make a difference for our customers, members and communities.

“The way in which people are shopping has changed a lot over the last few years and as it continues to evolve, we need to make sure we’re leveraging the Co-op brand and products to the right audience, in the right place and at the right time.”

Peter Moody, CEO at MullenLowe Profero, the customer experience arm of MullenLowe Group UK, said: “We wholeheartedly believe in working with brands with purpose and driving progress both commercially and socially, so to be working with the principled brand who strives for business growth whilst giving back to their communities is incredibly uplifting.

“Opportunities like this don’t come around often, and we absolutely can’t wait to get stuck into this and show the world what we and the Co-op are capable of achieving.”