AO - let's go - with John Roberts founder of Appliances Online
Jun 12, 2024
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John Roberts, founder and CEO of AO, ignites the conversation with his inspiring journey from a £1 bet in a pub to building a leading electrical retailer. He shares how superb customer service and innovative marketing set AO apart. Fascinatingly, he reveals the company's shift back to mailing mini-brochures amidst a digital age. John also discusses their ambitious goal of comprehensive recycling of appliances and the challenges of maintaining brand integrity while driving ethical business practices.
John Roberts founded AO.com after a £1 bet, transforming the retail landscape by offering significant discounts through an innovative online platform.
The company sets itself apart through an emphasis on superior customer service, providing unique delivery options and quality first interactions to build loyalty.
AO is committed to sustainability by investing in recycling facilities, aiming to create new products from recycled materials despite consumer price priorities.
Deep dives
Innovative Beginnings of AO
AO was founded by John Roberts in 2000 after a £1 bet with a friend in a pub, challenging him to start a business. The initial focus was on selling appliances online at a time when e-commerce was still developing, characterized by basic websites that lacked modern functionalities like online transactions. His friend, who had knowledge in computing, assisted him by creating a simple holding page, and John capitalized on the inefficiencies of traditional retail to offer customers substantial discounts, often around 40%. This unique approach of combining traditional marketing methods with an innovative online platform helped AO to attract a loyal customer base in its early days.
Revolutionizing Customer Experience
AO differentiated itself through innovative delivery options, including next-day and weekend service, which set it apart from competitors. Recognizing that customer perception of service was crucial, the company focused on direct customer interactions and retaining control over their delivery processes. John emphasized the importance of creating quality first interactions with customers, even employing tactics such as using recorded call center noise to project an image of a larger operation. By prioritizing the 'how' in customer service rather than just the ‘what,’ AO built a reputation for reliability and quality that attracted repeat business.
Sustainability Efforts and Challenges
In addressing sustainability, AO invested in recycling facilities to create a robust system for disposing of old appliances. This initiative was driven by a vision of producing new appliances from recycled materials, which included establishing advanced processing plants to manage the recycling of plastics. Despite the company's belief in the importance of sustainability, John noted that many consumers prioritize price over environmental responsibility. The challenge was balancing the economic model to allow effective recycling while maintaining competitive pricing in the consumer market.
The Role of Youth Services
John Roberts has been an advocate for youth services, emphasizing the need to provide support and opportunities for young people outside of formal education. He highlighted the significant discrepancy in funding, where the majority of governmental spending focuses on traditional education while youth services are often neglected. Organizations like Onside, which he has been involved with, aim to create safe and inspiring spaces for young individuals, addressing the needs of those from lower-income backgrounds. The aim is to provide positive alternatives and support systems, which can significantly improve the life outcomes for these youth.
Adapting Marketing Strategies
Recognizing the shifting landscape of marketing, AO has moved towards brand-building strategies, such as investing in television advertising, rather than solely relying on performance marketing. John emphasized the need to engage with consumers on an emotional level and create a memorable brand presence rather than just focusing on measurable conversions. Through community involvement and creative sponsorships, AO aims to establish deeper relationships with customers and enhance brand loyalty. This strategic pivot underscores the importance of a holistic marketing approach that not only targets sales but also builds a lasting brand legacy.
John Roberts started Appliances Online for a £1 bet in the pub on Christmas Eve 1999 with his mate. Today it's known as AO.com and it's a huge success in the provision of white goods and now tv and entertainment, smart tech, computing and more. John tells Rory how the company has focused on superb customer service to differentiate itself from its competitors and he outlines the thinking behind their sponsorships and marketing. Interestingly, having started by mailing brochures and then moving totally online, they are beginning to mail mini-brochures again. AO is now a totally vertically integrated business and John envisages a time, not far away, when they will be able to recycle every element of a piece of white goods into something brand new. AO also operate as a white label delivery business for a number of well known brands. This is a phenomenal 21st century success story.
