Why Grocery Loyalty Programs are Need of the Hour?
A recent loyalty study states that 83% of consumers visit 4-9 different groceries in a year. Is brand loyalty non-existent in the grocery business? Or are you not giving your customers enough incentive to purchase from you? The latter is likely to be true in this case, because customers freely exhibit loyalty or favoritism towards their preferred brands when it comes to apparel, electronics and basically every other purchase. Loyalty needs to be nurtured and the best grocery loyalty programs can help you do so, effectively.
Why Grocery Loyalty Programs Have Become a Necessity?
The grocery loyalty program analysis brings to light various factors that have made it necessary for grocery stores to have rewards or loyalty programs. Listed below are a few:
- The Competition – The competition in this sector is intense and with the introduction of online grocers, the competition is only expected to get tougher. With mega players like Amazon, Walmart and Google in the game, it has become extremely necessary for grocers to equip their brands with the best grocery loyalty program for long-term business sustainability and improving customer retention rates.
- Diversification – In the last few years, and especially since the pandemic, groceries have come a long way and diversified their services to offer improved customer experience. Grocers offer various services like home delivery, pick-up etc and grocers that don’t offer such services need loyalty programs or incentives to attract customers to their brands.
- Meeting Expectations – The new age customer is impatient and demanding, he wants everything under one roof, to save time and money. To maximize their value for money, most customers prefer a store that has everything they need, instead of going to several stores for several items. The lack of variety can hamper customer satisfaction and thereby retention rate, which is when grocery store rewards programs come to the rescue, by offering a motive to shop from the brand in exchange for rewards and incentives.
- Customer Data and Insights – To sustain your brand, gain a competitive edge and improve customer experience, data is extremely important. It becomes hard to keep track of your customers, let alone study their purchase behavior. Grocery loyalty programs can aid in extracting, managing and storing data ethically and legally, which could help you to improve your customer service, meet customer expectations and understand your customers better.
Best Grocery Loyalty Program Strategies for Your Business
- Personalization – Enhanced customer experience is perhaps the most effective way to improve customer retention and even acquire new customers through referrals. Based on your grocery loyalty program analysis you could create a personalized experience for your customers and keep them engaged with your brand.
- Cash back – For grocery, cash back is perhaps one of the best strategies to attract and retain customers. It provides instant gratification and encourages customers to repeatedly purchase from you.
- Targeted Marketing – When it comes to your grocery loyalty card program, marketing is important. You need your customers to know about the program in order to increase the participation rate. However, don’t waste your time, money and resources on customers that do not belong to your target group.
- Automated Cart Curation – Behavioral loyalty plays an important role in grocery. Customers usually buy the same products and mostly from the same brand repeatedly. The purchase cycle may vary but the products remain the same. Automated cart curation not only makes it convenient for the customers but also acts as a reminder and improves customer satisfaction.
- Meaningful Rewards – The reason behind the failure of some rewards or loyalty programs is the quality of the reward itself. Customers are not excited by souvenirs or meaningless items as rewards. Through your grocery loyalty programs, you can show your customers how valuable they are to you, through meaningful rewards and rewards that might add value to their lives.
- Social Sharing – If you want to grow your reach, through your loyalty program you could reward customers for talking about you or sharing your posts on their social media feeds. Creating a strong social media presence will increase brand reach, improve brand recall value as well as relevancy.
How Can Grocery Loyalty Programs Help?
- Helps with Customer Retention- If you have trouble retaining your customers, then a customized loyalty program can help you resolve this issue. Loyalty programs encourage customers to purchase from the brand repeatedly in exchange for rewards, cash back or incentives. The customer chooses you over others when you have a loyalty program and hence it becomes mutually beneficial for both – you and your customers.
- Improves Engagement – Engaging customers is difficult but of utmost importance. You can build trust, improve the customer-brand relationships and even motivate customers to rely on your store through efficient engagement activities like loyalty programs. The best grocery loyalty programs improve engagement levels and strengthen the customer-brand relationship.
- Aids in Customer Acquisitions – Word-of-mouth publicity is one of the strongest forms of marketing and promotion, especially in the grocery industry. When your customers benefit from your loyalty program, they are likely to share their experience and positively influence their network of family and friends, thereby impacting the acquisition rate through referrals.
- Reduces Purchase Cycle – The best grocery loyalty programs can considerably reduce the purchase cycle of customers. Gamifying your program or generating a healthy sense of competition can motivate customers to purchase more frequently, in order to win more points and rewards. This works wonderfully for the grocer as well and positively impacts sales and revenue.
How Annex Cloud Can Help You with The Best Grocery Loyalty Programs?
Designing an efficient loyalty program requires skill, resources and expertise. With extensive experience, Annex Cloud can help you design the most suitable grocery loyalty program that helps you achieve your business and marketing goals and improve business sustainability in these uncertain times. For a free consultation and demo, connect with our Loyalty Experience Manager.