How Woolworths’ Strategy is built on what customers are telling us
Our customer strategy is built on a deep understanding of what matters most to Australians today. By constantly listening to and learning from our customers, we ensure our strategic direction remains sound, relevant, and impactful. Here’s how our customers have shaped each pillar of our strategy.
PILLAR ONE
Best of Australian Fresh
Our customers tell us that Fresh is the heart of the Woolworths brand; it’s the number one spontaneous association they have with us. This is a powerful insight, as fresh quality, health, and range collectively contribute to around one-third of the factors that drive customer advocacy – the same contribution as price, value, and promotions. In fact, when customers are asked for specific reasons for recommending Woolworths, our fresh quality is one of the top reasons given. This reinforces the importance of fresh produce, meat, and seafood in our offering.
Opportunity: Our customers are increasingly health-conscious and value the quality and variety of affordable fresh food we offer. Trade Partners can leverage this by focusing on product quality, seasonal availability, and innovative new products to meet evolving customer needs.
Drivers of Brand Advocacy (Market)
Q4 F25 Quarterly Reporting (6 months data) using regression analysis
~35%
Price & Promos, Value & Loyalty
~35%
Health, Range & Fresh
Drivers of Advocacy – Woolworths Masterbrand brand health tracker, Quarterly Reporting, Q4 F25 (June 25)
Spontaneous Brand Associations – Woolworths
Brand Deep Dive, Aug 23
Spontaneous associations – HoB Brand Deep Dive Aug 2023
Fresh, helpful person. Probably in their mid twenties.
Practical, thrifty, efficient, friendly, fresh.
Reliable and dependable with a certain amount of wisdom.
Very affable and friendly, down to earth. Community minded and supportive, willing to help. Presents well and is not arrogant or superior. Comfortable to be with.
PILLAR TWO
Products You Love & Need
Customers value our commitment to providing the products they need and love. When asked why they recommend Woolworths, range and availability are the top specific reasons cited. Furthermore, the belief that Woolworths “has products I need and want” is the largest contributor to our brand recommendations. Simply put, ensuring we have the right products on our shelves is what brings our brand to mind first for our customers.
Opportunity: Trade Partners have a clear opportunity to ensure consistent supply and availability of key products. This reliability helps Woolworths meet customer expectations and strengthens brand loyalty.
Reasons for Promotion – Themed Verbatim
25 March, Brand Health Tracker
Source: Reasons for Recommendation – Woolworths brand tracker, House of Brand Qtly report, Mar 25
“The range is far more than my local shops so I can always find something different and unique, which makes experience more enjoyable.”
“My Woolies has QV and Cerave, which is new, and they have a lot more range compared to other supermarkets in my local area.”
PILLAR THREE
Easiest Ways to Shop
In today’s fast-paced world, our customers continue to demand convenience and want to shop how they want, when they want. An easy and efficient shopping experience, whether in-store or online, has the greatest impact on their satisfaction. Ensuring we create seamless in-store and digital experiences is critical to our customers’ shopping satisfaction.
Opportunity: As online shopping continues to grow, Trade Partners can align with our strategy by ensuring products are well-represented online, with accurate descriptions and availability to support a seamless digital experience. When our customers shop in-store, ensuring that the right products are available and easy to find quickly is critical.
Brand Relative Importance
25 March, Brand Health Tracker
Source: Brand Relative Importance – Woolworths brand tracker, House of Brand Qtly report, Mar 25
“Click & Collect is so easy and convenient. I can manage my budget and time by shopping online and they are always very quick to bring my order. This is the only way I shop.”
“My local Woolies is very convenient and not like long queues like the big shopping centres. Express lanes make a small shop quicker and the staff are friendly.”
PILLAR FOUR
Loyalty Rewarded in Every Shop
In today’s fast-paced world, our customers continue to demand convenience and want to shop how they want, when they want. An easy and efficient rsonalised value and seamless experiences both in-store and online. Our App usage continues to increase as members engage with our boosters and bonus offers.
Opportunity: Our loyalty program provides a personalised channel for reaching engaged customers. Trade Partners can explore opportunities to align promotions and offers with the loyalty program to deliver value and category-specific innovative and joyful experiences for customers.
Drivers of Preference
Q4 F25 Quarterly Reporting (6 months data) using regression analysis
Source: Drivers of Preference – Woolworths brand tracker, data from Dec 24 Quarterly
“My favourite thing is the rewards card system. It makes me so happy when I’m told my rewards card is giving me $10 off my shopping!”
“I love that I can ‘bank’ my savings until Christmas. Makes a huuuge difference at a time when a little extra money comes in handy.”
Key Takeaways
- Customer-centricity is key: Each of our strategic pillars, from Fresh to Loyalty, are shaped directly by what our customers tell us
- Freshness and Range drive advocacy: These are not just product categories but fundamental drivers of why customers recommend and choose to shop at Woolworths
- Convenience and Loyalty matter: Creating an easy and seamless shopping experience, both in-store and online, with a personalised and rewarding loyalty program is critical for our customer’s engagement and satisfaction
- Partnering for Success: There are significant opportunities for suppliers to strengthen their partnership with Woolworths by working together and focusing on product quality, consistent availability, and leveraging our loyalty and digital channels in order to meet the evolving needs of our shared customers
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