Understand Customer Behavior Better with a Grocery Loyalty Card

by Bistriti Poddar |

Understand Customer Behavior Better with a Grocery Loyalty Card

The grocery space witnessed a spike in demand during the pandemic, as millions of customers wanted to stock necessary items for day to day life. According to reports, in April 2020, online grocery sales touched $5.3 billion, with total orders going from 46.9 million to 62.5 million between March and April, respectively. It is the time that grocery stores developed digital marketing strategies to cater to customer convenience more effortlessly.

The traditional grocery store loyalty program is different from loyalty programs designed by other sectors. A grocery store loyalty program aims at achieving greater transaction volume from regular customers. To successfully reach the goal, loyalty programs for grocery stores often rely on product discounts from their vendors promo budgets and/or discounts on fuel.  

There is enormous opportunity in the grocery space for organizations to build a meaningful holistic customer experience.  Grocery stores offering loyalty programs that are based on creating more personalized experiences will be able to influence and engage more customers, ultimately driving stronger bottom-line revenue.    

Grocery Loyalty Program- Best Strategies

Grocery stores need to be massively tech driven to invest in high incentivized programs and offer free delivery and shipment. But a good grocery loyalty program in general satisfies customer needs by convenience, consistency and rewards. Here are some strategies that when incorporated helps grocery businesses draft a successful loyalty program

  • Understand and analyze what your customers want. Based on the core attributes, segment them. This will help your business draw greater benefits with one single loyalty program.
  • If your grocery brand has an online presence, you can possibly implement AI features like automatically curating shopping carts for customer convenience. This will save your customers a huge amount of time as few products are bought often and searching for them again and again to add to the cart is a hassle indeed. By incorporating AI-based customer intelligence and retail personalization tools, grocery stores can offer personalized recommendations on customer’s dietary preferences. Additionally, data from loyalty programs can help understand, segment and reward customers. Issue coupons for customers who are engaging less frequently and additional discounts for customers who show consistent brand love.
  • It is not always possible for grocery businesses to invest in heavy incentive programs. This disrupts the overall budget and affects the entire business. Hence it is more advisable to invest in personalization. It is cheap and the goal is to show customers that you care.
  • It is easier for businesses to benefit from upselling and cross selling when more attention is brought to the physical store, even for ecommerce based brands. Therefore in-store contests and enticing offers are suggested to increase value proposition along with activating up and cross selling.
  • Use data driven rewards to boost engagement and help customers redeem more points for greater benefits. You can give a tiered or point based structure to your loyalty program for sales targeted promotions.

Building a winning Grocery Store Loyalty Program

  • Embrace the power of technology. Even though grocery retailers have managed to improve shopping experiences for customers by reducing the cost structure, things are different for grocery stores having an eminent e-commerce presence. With digital advancements and omnichannel approach, brands can invest in digital coupons for automated updates and replicate customer data across all platforms.
  • Customers are highly driven by a great value proposition, convenience and personalization. Your loyalty program should deliver customers with personalized incentives, as customers happily share data when your brand comes up with efficient personalized gifts and mails using the data that were collected.
  • Collaborate with brands and get insights to other effective grocery loyalty programs running effectively in the market. A supermarket or a grocery store can benefit a lot from other brand collaboration at different selling points. This will help in the creation of a unique loyalty program and drawing of higher profits in the process.
  • Don’t limit the rewards that you are offering in your loyalty program. Make sure that the rewards are achievable and not restricted to only a few members who are spending extra. A wide list of incentives to choose from will entice more customers to participate in a program that will positively increase brand engagement.

What is the role of the Grocery Loyalty Card?

Primarily a grocery loyalty card and program helps grocery stores accumulate customer data. This data when analyzed helps grocery businesses drive sales and make profit from them from the existing customer base. A grocery loyalty card is basically a part of the business’ loyalty program. The possession of a grocery loyalty card also distinguishes a loyalty member from a normal customer. Customers benefit from cards when the incentives are redeemable in-store only. As for grocery stores, loyalty members can get discounts on important items and enticing offers like “Buy 2 get 1 free”.

Grocery Loyalty Cards have evolved from a traditional physical card that customers would need to carry along with them every time they shop within the store, to digital cards or mobile passes that are now easily available to save within your phone and scan at any grocery store location. Modern technologies now allow brands to power loyalty programs within their mobile applications which also have capability to identify customers at POS locations using digital loyalty cards. The Grocery loyalty card enables registered customers to earn and redeem points and also participate in exciting instore offers.

For over 10 years, Annex Cloud has been the worldwide leader in technology and service solutions that transform customer loyalty experiences for organizations, extending valued customer engagements, and tracking valuable customer information for marking strategic decisions. Powered by the comprehensive and scalable Loyalty Experience Manager™ solution suite, Annex Cloud customers capture and use zero and first party data to seamlessly deliver hyper-personalized experiences across the entire customer journey – from awareness to purchase to retention, loyalty and advocacy. Big grocery stores are benefiting from our robust platform capabilities as well as industry expert recommendations that have helped them implement successful loyalty programs. The company is recognized by industry respected organizations like Gartner and Forrester and integrates with over 100 market-leading technologies. Get in touch with us today!

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