ANZGrocery retailScale · $100K
Coles Group

Feeding Australia at software cost-to-serve — agentic order care and loyalty service for Coles' omnichannel machine

Coles runs one of Australia's largest retail operations under one of its harshest spotlights — regulators and households scrutinizing every price move while e-commerce growth adds delivery-exception volume at Australian labor cost; an agentic frontline that resolves order, delivery and flybuys issues in-conversation, at full coverage during weather and peak disruptions, lets Coles grow online share while cost-to-serve falls — the only politically safe efficiency there is.

Entry use case
Online order and delivery-exception service desk
Expected outcome
Resolve substitution, missing-item and delivery contacts in-conversation with policy-tiered remedies, cutting cost per online-order contact as digital share grows.
Recommended next step
Workshop with digital and customer-care leadership: baseline online-order contact rates and remedy costs, then scope a Scale pilot on the order-care desk before the next peak season.
What we understand

Coles Group's operating reality

Coles Group operates one of Australia's two dominant supermarket chains, plus liquor banners, with online grocery a strategic growth engine fulfilled increasingly from automated customer fulfilment centres.

Public fact

Coles has run a sustained 'Simplify and Save to Invest' cost program, with cumulative savings publicly reported and reinvested into value and digital.

Public fact

Australian supermarkets faced intense cost-of-living scrutiny, including regulatory inquiry into pricing practices — service failures now carry outsized reputational risk.

Public fact

flybuys (co-owned with Wesfarmers) anchors loyalty; points and personalized-offer issues are trust-sensitive contact classes.

Public fact

Delivery-exception contacts (substitutions, missing items, late windows) grow faster than order counts as online share rises, at Australian labor cost per contact.

Reasoned inference

Peak events and weather disruptions (floods, storms) create order-disruption contact spikes that fixed capacity absorbs badly.

Seller hypothesis — validate

Validate with the account team before outreach: Actual contacts per online order and remedy cost baselines · Existing chatbot containment and CCaaS vendor commitments · flybuys JV governance for loyalty-servicing scope · Peak-event contact multipliers (Christmas, weather disruptions)

Build vs buy

Why we have a right to win here

Buy-led target

Limited internal ability or appetite to build the core platform — strong candidate for the packaged solution

Evidence: Coles invests heavily in retail technology but through build-with-partners models — automated fulfilment with Ocado and Witron, cloud partnerships for data — and has no internal LLM platform; conversational AI at frontline scale is a capability Coles will buy and govern, consistent with how it bought fulfilment automation.

Why they won't build the full stack: Retail engineering capacity is committed to supply chain, stores and personalization; the fulfilment-automation playbook — buy the proven platform, integrate deeply, run the operations — is exactly the pattern to repeat at the conversation layer, years faster than any internal build.

What management is signalling

Coles has publicly reported cumulative savings from its Simplify and Save to Invest program while facing sustained cost-of-living and regulatory scrutiny of supermarket pricing.

Reported factFY25 annual results and public inquiry coverage · 2025

GTM implication: Efficiency that visibly improves customer experience is the only reputationally safe cost lever — sell the frontline exactly there.

Online sales continue growing ahead of store sales, with automated fulfilment capacity expanding.

Reported factrecent results announcements · 2025

GTM implication: Per-order service cost scales with the digital mix — anchor the business case to the same online growth metric management reports every half.

What already exists (don't pitch this)
  • Coles app and online ordering with mature self-service
  • flybuys loyalty with mass membership
  • Automated fulfilment centres improving delivery accuracy upstream
  • Contact centers and chatbot deflection on service lines
What customers still can't do end-to-end (pitch this)
  • →In-conversation remedies with policy tiers instead of ticket queues
  • →Elastic capacity for peak and disruption spikes
  • →Loyalty-issue resolution that protects the flybuys asset
  • →Systematic clustering of complaint patterns to fix root causes upstream
Opportunity map

Where agentic communications pays off first

WorkflowWhy it matters hereValueComplexitySpeedChannels
Online order and delivery-exception care
In-conversation remedies within policy tiers; cost per online-order contact drops as digital share rises.
Per-order service economics decide whether the online growth strategy accretes or dilutes margin.
Friction today: Substitution complaints and missing items need human touch for trivial remedies; peak-week queues frustrate exactly when order volumes reward loyalty.
App chatVoiceWeb
flybuys and personalized-offer service
Points traced and corrected in-conversation; offer terms explained instantly; loyalty trust protected.
Loyalty is the data engine of the business; unresolved points issues burn the asset that funds personalization.
Friction today: Points disputes and offer-mechanics questions queue on hotlines or die in FAQ pages.
App chatVoice
Store feedback and product-issue intake
Structured intake with policy-bounded remedies; patterns clustered and reported to category owners weekly.
Product-quality and pricing-accuracy complaints carry regulatory weight in the current scrutiny climate.
Friction today: Feedback scatters across channels; systemic issues surface slowly.
App chatWebVoice
Watch the change

Online order and delivery-exception service desk: today vs the agentic model

Scenario: A family's Saturday delivery arrives missing the birthday-cake ingredients and with an unwanted substitution; the agent refunds both within policy in the chat, applies a goodwill credit inside its tier, rebooks the missed items for same-day pickup at their local store — and the complaint that would have become a social-media post becomes a retention moment.
Today
same interaction, two worlds
Agentic layer
Contacts per delivery incident
3–4 across channels
1 proactive thread
Platform capability
Cart abandonment context
~70% average
recoverable via consent-based outreach
Benchmark
Cost per contact
$13.50 median assisted
$1.84 median self-service
Benchmark
QA coverage
1–2% sampled
100% scored
Platform capability
Sources & assumptions
  • · Contacts per delivery incident: Process design: exception detected before contact
  • · Cart abandonment context: Baymard Institute meta-analysis
  • · Cost per contact: Gartner customer service cost benchmarks, 2024
  • · QA coverage: Platform capability: every interaction logged and evaluated
  • · Gartner, customer service cost benchmarks (2024): $13.50 median assisted vs $1.84 self-service per contact
  • · McKinsey, digital-first collections research: 20–25% NPL reduction among leaders; up to 40% opex reduction with gen AI
  • · Baymard Institute: ~70% average cart abandonment (meta-analysis)
  • · IAMAI–Kantar via IBEF (2025): 900M+ Indian internet users; 98% consume Indic-language content
  • · LeadSquared and vendor funnel studies: 78% of students choose the first institution to respond (directional, vendor data)
  • · HDI / ITSM operator benchmarks: $15–25 per L1 ticket; 40–60% of L1 volume is resets/status (validate per customer)
  • · Conventional-flow wait times and volumes are typical operator patterns — assumptions to replace with the customer's own baseline
  • · Agentic-flow behaviors (context retention, 100% logging, in-line policy checks) are platform capabilities, not projections
Recommended solution

One integrated stack, opinionated for this account

Channels · Tilicho Labs
App chatVoiceWeb

Voice & channel orchestration, telephony, conversational execution, session/state, routing, integration build. Capability coverage validated during implementation.

Intelligence · Google Cloud
Gemini reasoningEnterprise groundingWorkflow agentsMulti-agent orchestrationGoverned actionsEvaluation & analytics
Systems · Coles Group
OMSLast-mile logisticsPayments/refundsLoyalty platformPromotion systemsCRMQuality systems

API access to these systems is the critical-path dependency.

Trust & languages
English

Identity-bound sessions, policy-bounded actions, 100% audit logging, human approvals at defined points, in-tenant intelligence.

Business case

The economics, with your numbers

Addressable monthly interactions1.8M
Seller assumption — replace in discovery
Current cost per interaction ($)$6.5
Industry benchmark scale — validate
Automation / assistance rate (%)55%
Seller assumption — pilot proves this
$11.7M
Current operating cost / mo
$73.1M
Modelled gross benefit / yr
0.0 mo
Payback on Scale
1742%
3-yr ROI (modelled)
Automated/assisted interactions per month990K
Modelled AI run-cost per month (usage + cloud, system estimate)$347K
New monthly operating cost$5.6M

All figures are modelling estimates from the labeled inputs above — nothing here is customer-provided yet. The pilot's first job is replacing these assumptions with Coles Group's measured baseline. Package price covers implementation only; recurring usage billed separately.

Recommended package

Scale — $100K implementation

Scale · $100K · A multi-channel production deployment10–14 weeks to production across priority workflows

Why this package for Coles Group: Order care plus flybuys loyalty servicing plus store-feedback handling are multi-workflow scope over shared customer identity — Scale-grade integration into OMS, loyalty and CRM.

Included
  • 4–6 channels
  • 2–3 priority workflows
  • Multiple enterprise integrations
  • API credential & security setup
  • Advanced orchestration
  • Multilingual support
  • Agent Assist / human escalation
  • Production analytics
  • Expansion roadmap
Not included
  • ✕Usage & consumption (billed separately)
  • ✕Enterprise-wide governance build-out
  • ✕Multi-BU rollout
Recurring costs (separate from the package)

Packages cover implementation and integration only. Recurring costs are billed separately: Tilicho Labs platform usage (~$0.15/call-min indicative, usage only), Google Cloud consumption, telephony/carrier charges, managed operations, and support & optimization. No package includes unlimited usage.

Customer resources required
  • · API access + credentials for: OMS, Last-mile logistics, Payments/refunds
  • · A named business owner for online order and delivery-exception service desk
  • · Security review counterpart and policy sign-off (OMS scope)
  • · Baseline metrics for the pilot's success thresholds
Executive messages

What to say to whom

CEO

“Under a pricing spotlight, the safest efficiency is the one customers experience as better service; agentic order care is cost-to-serve down and resolution quality visibly up, simultaneously.”

CIO / CTO

“A governed agent layer over OMS, loyalty and logistics APIs completes the automation story your fulfilment centres started — the conversation layer catching what the supply chain can't.”

COO

“Delivery-exception volume compounds with online growth; policy-tiered in-conversation remedies cap that curve before it eats the digital margin story.”

Chief Digital Officer

“Every unresolved online-order issue teaches a household to shop the other brand; instant resolution is the retention investment with the clearest attribution you'll find.”

Chief Risk / Compliance Officer

“Policy-bounded remedies, human gates above goodwill tiers, ACL-consistent handling and 100% logging — complaint evidence at a standard regulatory scrutiny rewards.”

CFO / Procurement

“Simplify and Save to Invest needs refills every year; measured cost per resolved contact at millions of monthly contacts is a structural saving the pilot proves against your own baseline.”

Outreach

Pre-built offer emails for Coles Group

Written from this account's own research — the strategic signal, the capability gap, the entry workflow, and the modelled economics — not a mail-merge template. Pick the moment and the persona, edit anything, then copy or open in your mail client.

Moment in the deal
Cold outreach — no prior conversation
Who it's addressed to
Cares about: The workflow itself and its daily failure modes
Register
Length
Draft — edit freely before sending
Open in mail client

Customer-safe by construction: drafts are composed only from customer-facing fields. Account tier, build-vs-buy classification, priority score, internal routing, and partner-commercial detail are not inputs to the composer, so they cannot appear in a draft. Money figures are always framed as modelled from the customer's own volumes. Read before sending — you own what goes out.

The pursuit

Tier 1 — immediate strategic pursuit

Why this tier

Australia's second supermarket giant — thousands of stores, a fast-growing online business fulfilled from automated Ocado and Witron sites, flybuys loyalty, and a cost-of-living political spotlight that makes service quality and cost discipline simultaneously non-negotiable.

30 / 60 / 90-day plan
  • Day 0–30: Workshop with digital and customer-care leadership: baseline online-order contact rates and remedy costs, then scope a Scale pilot on the order-care desk before the next peak season.; confirm sponsor and baseline data access; validate: Actual contacts per online order and remedy cost baselines
  • Day 31–60: architecture & security review with the platform team; Tilicho Labs scoping on App chat + Voice; pilot scope signed
  • Day 61–90: Scale package kickoff; online order and delivery-exception service desk pilot in build; success thresholds locked with the Chief Digital Officer
Recommended next step

Workshop with digital and customer-care leadership: baseline online-order contact rates and remedy costs, then scope a Scale pilot on the order-care desk before the next peak season.

Entry: Online order and delivery-exception service desk · Scale package · 10–14 weeks to production across priority workflows. Human fallback throughout; success thresholds agreed before build.

Start the pursuit

Research-based priority-account universe assembled from public information, market scale, communication volume, and solution fit. This is NOT an authoritative list of top Google Cloud customers; existing Google Cloud relationships are noted only where publicly reported. Validate every account with the account team before outreach.