Grocery chains have traditionally relied heavily on blanket one-size-fits-all offers and blind circulars to incent customers with aggressive discounts. Forrester reports that 80 percent of customers want to be treated as individuals and receive communications and offers tailored to their unique preferences—and this applies just as much to the grocery industry as any other.
Today’s Grocery and Supermarket shoppers expect convenience, unique value, and emotionally connected experiences. Given the following facts, it’s essential that grocery and supermarket retailers create timely, relevant, personalized interactions for customers:
Suresh Kumar, Walmart’s Executive Vice President summed it up in a February 2021 earnings call when he said, “This year onward, it’s going to be about unlocking the future of shopping for our customers, meeting them in their customer journey in a highly personalized omni-fashion.”
The Opportunity Is Ripe
Pre-pandemic, ecommerce accounted for just four percent of all grocery sales but soared to as much as 20 percent in the midst of the pandemic, according to a Sigmoid analysis. While the COVID boom may blow over, customers are increasingly looking to online options and Sigmoid reports 90 percent of customers are expected to continue shopping online post-pandemic. Online grocery sales are expected to account for 21.5 percent of total grocery sales by 2025—an estimated $250 billion—which is more than a 60 percent increase over pre-pandemic estimates.
So, how do grocery retailers protect thin margins, meet changing customer expectations, and seize their fair share of this growing market? Customer loyalty technology and strategies address all these challenges.
Loyalty Solutions—A Recipe for Success
Leverage today’s customer loyalty technology is one of the most effective ways to truly understand your customers, identify and reward your best customers, and accelerate growth.
Take a look at just a few of the benefits of loyalty that grocery and supermarket and retailers can expect:
Let’s Get Personal
According to a recent survey, 90 percent of respondents said they are much more likely to do business with a grocery store that is offering personalized experiences. So, what might that look like, leveraging loyalty’s robust first-party data? Here are just a few examples:
Loyalty in Action
According to Gallup, companies that create an emotional connection with their customers outperform the sales growth of their competitors by 85 percent. Supermarket retailer Kroger creates deeper customer bonds in part through an app that provides real-time information to potentially stressed-out shoppers in search of quick dinnertime options. The app provides recommendations based on collected customer data as well as real-time store inventory data. According to NTT Data, one grocery chain offered 1,666 customers at risk of churning a hyper-personalized coupon, motivating 32 percent of them to shop with them. Loyalty is one of the fastest and most effective ways to collect first-party data and push it across your tech stack to individualize every interaction across every touchpoint.
Annex Cloud Can Help
Annex Cloud’s Loyalty Experience Platform™ combines best-in-class loyalty management with powerful engagement and communication modules, enabling grocery and supermarket retailers to build lasting customer bonds while accelerating growth. It’s modular, so you buy just what you need. Learn more about our grocery loyalty programs.