How Tesco Mobile increased its long-term media ROI by 53%
By tapping into the power of its masterbrand, Tesco Mobile went from overlooked brand to “customer champion” on track to exceed 15% consumer growth by 2025.
Tesco Mobile’s ambition of growing its customer base over the next five years had hit a snag. Trying to convince customers to switch to a mobile-only offering, without the enticement of a TV or broadband package, was proving tricky.
Seen as a “mid-market player”, Tesco Mobile was struggling to meaningfully differentiate. Yet, despite brand tracking revealing just 6% of people considered the company ‘an expert brand’, customers rated Tesco Mobile higher than any other network.
Joining forces with agency BBH, the business decided to lean into its legacy of serving customers, seeing the association with its supermarket masterbrand as a “unique weapon” to convey a sense of honesty, helpfulness and transparency.
Under the ‘Supermarket Mobile’ platform, Tesco Mobile rolled out creative promoting exclusive lower prices for Tesco Clubcard holders. Realising Clubcard savings could mean the difference between settling for an ordinary phone or an upgrade, the advertising showed customers finally getting the phone of their dreams.
The intention was to leave competitor perks appearing empty and frivolous compared with the value of Clubcard pricing.
The strategy paid off. Supermarket Mobile drove the brand’s highest ad recall to date, helping Tesco Mobile grow brand affinity by 3% and trust by 5%. The campaign fuelled 4.5% growth in customer acquisition, including 8% more Tesco shoppers, and 5.2% lower churn.
Having improved its long-term media ROI by 53%, the brand is on track to exceed its goal of 15% customer growth by 2025, results which saw Tesco Mobile scoop the Marketing Week Award for Media and Telecoms.