Asda said it is on track to rack up 100,000 customers as its short-term target, but is aiming for one million over the next few years.
The target was made by Asda Mobile chief Ted Cadogan, who based it on rival Tesco being twice Asda’s size and attracting two million customers.
Although the Leeds-based company has significantly less stores than Tesco, Cadogan says it will be helped by the fact that it still has half the footfall of Tesco and Asda stores are typically larger, which means there is a greater opportunity for space to be given over to the Asda Mobile offer. Asda Mobile is already available in 260 of the supermarket’s 300 stores.
Asda, which has Vodafone as its virtual network partner, is aiming to push its credentials as the value-for-money retailer in the UK market.
Cadogan claimed customers are finding its proposition of 16p per minute for the first three minutes and 8p thereafter competitive, especially when combined with its rate of 10p per text for the first three texts and 5p thereafter.
In addition, various promotions will be running over Christmas that Cadogan says will ‘sell through very quickly’, such as the recent Nokia 2300 offer, which is free when buying £20 of airtime.
Cadogan said the supermarket was aware of the risk of box breaking, but was determined its cheap deals would find genuine customers. ‘The difference compared with a tin of baked beans is that you try to recover the margin through top-ups, which is why we only want to attract real users,’ he said.
Read the full interview in this week’s issue of Mobile.