Iceland's 800th store in Beccles

Iceland has been printing tailored vouchers at its tills

Iceland claims customer satisfaction levels have soared since it started printing individually tailored vouchers at the till instead of sending paper coupons by post.

The instant vouchers are part of a wider customer engagement strategy launched a year ago by Iceland to gain more insight into its customers and give them more relevant vouchers - as well as slash the cost of spending on direct mail.

Iceland hired Omnico to tailor its software to fit Iceland’s existing IT and Bonus Card operation because its Omni-Engagement software can collect and analyse data at high speed. That means it can deliver personalised vouchers for customers in the time it takes to scan and bag a basket of shopping.

“For us, it’s about increasing sales and giving customers what they want,” said Iceland head of customer insight Lyndsey Swann. “This solution is more flexible than direct mail, which increases customer satisfaction, but we are also collecting more data and analysing it better.”

Iceland’s shopper satisfaction rating had leapt from 65% before the software was rolled out to 85% today, she said, adding that membership of the five-year-old Bonus Card scheme had reached a record high.

Switching from posting paper vouchers had also cut the amount Iceland spent on promotions by 16%, Swann said, which had enabled Iceland to up the amount it planned to give away in vouchers to almost £5m this year.

“Many retailers are heavily discounting and using multiple promotional tools to combat tough economic trading and this solution has allowed Iceland to maintain its position in the market and continue to grow,” said Swann.

The decision to modernise its promotional engine also coincided with Iceland’s return to online shopping, which is currently on trial in limited areas of the UK.