Co-op Group has handed VCCP London a major tranche of advertising and marketing business to fulfil the organisation’s aim of growing membership by one million people this year in a move which could see the agency ultimately grab the lion’s share of the account.
The move, which saw VCCP win a two-way competitive pitch run by Ingenuity, will result in the agency driving strategy and creative direction on a project by project basis, beginning with the membership drive which will run across Co-op Group and all of its products and services, including food, funerals, legal and insurance.
The agency is now set to take over from previous incumbent Lucky Generals, which has held the retailer’s account since 2018, and will continue to do so for the next three months. Lucky Generals declined to pitch for the project.
However, it is understood that the Co-op has yet to make a final decision on which agency it will work with long-term, following the launch of a review initiated late last year by chief membership and customer officer Kenyatte Nelson.
The retail has already seen a surge in new sign-ups to its membership scheme on the back of exclusive offers and has reached half-way towards its target of attracting one million new member owners by 2028, after just seven months.
It only set the target of adding a million new members within 5 years in April last year; by November it had grown from 4.5 million to 5 million active members.
Overall, Co-op has vowed to invest more than £240m over the next five years to boost its loyalty programme and help customers save more. It claims the member-only prices could help customers save up to £300 a year.
Earlier this year, Co-op ditched its money-back scheme, which allowed loyalty club members to build up cash towards future purchases, to usher in an expanded range of member-only exclusive prices and deals.
According to the firm, members now “benefit from price reductions on branded as well as own-brand foods for the first time”, along with receiving two personalised offers every week, based on transactional data gathered on each member.
Co-op also works with Mullen Lowe, which was appointed in 2022 to spearhead a new customer marketing strategy following a four-way pitch.
The IPG-owned agency, which took over from incumbents Kin & Carta and The River Group, spearheads a fully integrated data-driven approach, including digital consumer marketing and “always-on” content.
Co-op marketing director for food and masterbrand Mel Matson said: “We are pleased to appoint VCCP to work with us on a project by project basis, to help grow our membership by another one million people and to drive further our Co-op point of difference.”
VCCP London chief executive Andrew Peake added: “We are absolutely delighted to have been appointed by Co-op and we are already preparing our first campaign together, to help grow their membership and business. Co-op is a fantastic brand and we can’t wait to kick off our new partnership and show the nation why they are so special.”
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