Co-op seeks membership boost with Samsung O2 deal

Co-op is taking a novel approach to boosting its UK membership by partnering with Dentsu to automatically install its app at the point of sale directly onto all Samsung O2 Telefónica devices, which currently ship out at the rate of 20,000 devices a week.

Co-op says the deal means it will not have to rely on traditional download-driven marketing campaigns, with the reduced download friction directly responding to consumer expectations that their interactions with brands should be more convenient, while representing a shift in how brands can scale and maintain relevancy in a mobile-first environment.

Co-op is also working with Dentsu owned Carat UK to implement a media buying strategy which complements its pre-load initiative.

By ensuring that media spend is being directly tied to measurable outcomes such as number of application installs and level of user engagement, the business has seen a 46% reduction in Android cost-per-acquisition (CPA). This new model has maximised efficiency, reduced costs and set a new industry benchmark for digital advertising, Co-op insists.

The pre-load advertisement channel – which was initially developed by mobile growth platform Digital Turbine – is claimed to be a UK-first, streamlining the download process to encourage wider collaboration across telecom providers, manufacturers and brands.

With grocery retail applications representing 15% of all shopping application downloads for the last 12 months, the move is designed to strengthen the UK ecosystem and supports the growth of mobile commerce in the region by driving more efficient application adoption and helping businesses to more effectively engage with their end users.

Co-op chief membership and customer officer Kenyatte Nelson said: “Our new pre-load initiative will enable us to more efficiently engage with our customers. Dentsu’s support and innovative approach has been invaluable in enabling us to bring this to market and set a new industry benchmark for digital marketing.”

Dentsu chief digital officer UK&I Toby Benjamin added: “The strategic alignment of app pre-loading with high-volume device sales creates a win-win situation for businesses and consumers alike. The Co-op brand, known for its widespread appeal and strong community presence, is a perfect example of how this groundbreaking model from Telefonica can be leveraged to streamline the user experience and drive engagement and visibility at scale.”