Case Study: Argos
Argos is a multi-channel retailer in the UK with over 130 million customers a year and is the UK’s most visited high-street retail web site (2008). Argos wanted to implement a more flexible customer journey through the various reservation channels they offer their customers, putting them in control of their shopping experience. They settled on the mobile channel, a quick and instant medium to interact with the Argos brand which ultimately leads to increased sales and stronger brand loyalty.

New Lines of Revenue
Velti designed and developed the “Argos Text and Take Home” service, allowing consumers to query and reserve products from the Argos catalog by sending a text. Consumers can price-check products, opt for a notification when an out-of-stock product is back in their nearest store, or make a “Customer Special Order” for specific items for collection at a certain store. Velti also provided a “Reservation Notification”, used to send reservation confirmation messages to consumers who have reserved products via the web site or over the phone. Customers browse the Argos web site or catalog and text the product numbers to the company.They then receive a text telling them whether it is in stock at their nearest store and are given the option to reserve the product by text. If they have not collected it within 24 hours, they receive a text reminder. If the product is not available, customers can request to be notified by text when it is back in stock, so they can make a purchase. Payment takes place at the counter.

Customers using Argos’ text service have a variety of reasons to use it: they are receiving instant reminders; they won’t lose the information like they might with a misplaced print-out; it has no cost; it has great "green" appeal.

Expanding Services
Argos is keen to enhance their mobile services as customers become more sophisticated. They introduced Home Delivery text in May 2009 following a successful pilot. The night before a scheduled delivery, the customer service operation uses text to alert customers of their two-hour delivery window.

Results
Since launching “Text and Take Home” in 2004, millions of customers have used the service, generating hundreds of millions of pounds of sales. In 2009 alone, Argos’ mobile channel delivered over $100 million of incremental revenue. The reminder text increased the reservation-to-purchase rate by up to 15% (to over 55%)and the service has generated over 100% year-on-year growth of the user base. In addition, Argos has enjoyed:
  • Annual uptake of 60% new users provided with a real multi channel experience
  • 30 million mobile customer notification sent in 2009
  • An extra sales channel – conversion rate of 55% reservations to collections
  • Reminder notifications have added to another 15% of conversions to reservations
  • 250,000 customer-initiated messages per month - total of 2.5 million messages per month
  • All Argos channels sent 30 million mobile customer notifications in 2009 – which represents 120% annual growth
  • Text & Reserve interactive channel resulted in almost $30 million worth of reservations in 2009
  • 6 million members within the service – 4 million of those are opted in for Argos marketing activities
This highly successful service has received several awards including the "Revolution Awards: Best Interactive Services on Wireless Networks" and the "Retail Week Awards: Retail Technology Solution of the Year." Velti is working with Argos to extend the service to achieve a seamless integration of mobile with all the Argos channels.

Argos multi-channel business delivery manager Simon Hawkins commenting on the success: "Since we launched the channel in 2006 through our service provider Velti, we have seen strong year on year growth, which has been a key factor in bolstering our position as leading multi-channel retailer in the UK. We have learned a great deal about retail via the mobile channel and can see that with five million plus users and counting, customers are responding to the convenience this service adds to their Argos shopping experience. We are always striving to refresh our multi-channel offer and believe we are best placed in our market to deliver future benefits for our mobile customers."