If you build fun and excitement into the grocery
shopping experience, will it really impact shopper satisfaction? The Retail Feedback
Group’s sixth annual Store Experience Survey finds a clear link between the two. Read on to learn about the drivers.
“Text. Save. Simple.” is the message from Family
Dollar. Just text a five-digit code to receive a digital coupon on your cell
phone. No mobile browser required, and the shopper's in the driver's seat – this is slightly different approach from the usual opt-in sign-up that most retailers require for mobile offers and seems to be FD's way to broaden the appeal and use of offers by more shoppers.
In this short video, we interview Stephanie H. about her experiences
with shopping apps – starting with grocery retailer apps, and then moving to others (RetailMeNot, Costco, and Target’s Cartwheel). Finally, we ask what she likes best and what
she would change if she could. Watch and learn.
Bake Shop is a specialty operation with strong ecommerce capabilities that we've
been following for a couple of years. Their creativity and responsiveness sets them apart. Look at how they “turn on a
dime” after the Red Sox clinched the World Series last week.
Reinvention doesn’t have to be radical, it just has to been different enough to really engage today's shoppers. Check out the grand opening of the Publix in Ponte Vedra Beach, Florida in this video for a great example.
Many ways currently exist to help customers build
grocery lists, but new ones keep arriving. Hiku is the latest entry, a puck-shaped device that eliminates the need
to write or type anything. Is ease of entry the key to the perfect list assistant?
Ibotta's mobile app provides savings when shoppers buy CPG products and when
they engage with the brand. Since the savings are delivered via a participating grocer's loyalty card, everybody wins: shoppers, CPGs, and retailers, who get "credit" for the discounts.
Supermarkets have used purchase histories to personalize advertising circulars
for years, but now drugstores are getting into the act. CVS is rolling out myWeekly Ad to 45 million ExtraCare loyalty members. This is going to introduce a lot more shoppers to the value of personalized circulars.
Walmart and Amazon are pursuing very different strategies for fulfilling online orders. The battle of the titans is important to watch – but we think some of the innovative solutions for leveraging the value of store assets in omnichannel retail are going to emerge from smaller players.
Shoppers have been researching new car purchases on the web
for years, but they usually had to visit a dealer to seal a deal. Not any more.
GM is expanding Shop-Click-Drive, an online shopping tool that allows customers
to bypass that step.
Despite shopper’s limited receptivity, CPG advertisers are rapidly shifting ad
spending to mobile. This should increase retailers' confidence in doing so – and retailers may be in a better position to deliver relevance and value because their engagement is more straightforward.
The move to digital grocery shopping is far from a done deal, as this research confirms. We’re still at the beginning of a major shift in shopping behavior, and there’s a lot more to learn about what it will take to get different types of shoppers to try new value-adding services.
It turns out that low price
is not the primary motivator for shopping
online. In several major product
categories, less than a quarter of customers identified low price as
their main reason for shopping online, according to a new study. How should retailers respond?
To reduce the cost of shipping high bulk/low value per cubic inch products like diapers and toilet
paper, Amazon is co-locating employees in seven of Proctor & Gamble’s warehouse
distribution centers. Watch for products with different
“values per cube” to follow different paths to the online market.
reports that shoppers under 45 are much more likely to have digital connections
with their ShopRite stores than older shoppers. It’s clear from reports like this and our own
research that if
you want to better engage younger grocery shoppers, it's key to “talk digital.”
recent study sponsored by Match ShopLab and Novartis Consumer Health found that
one out of every five shoppers had downloaded their food retailer’s app. Retailer-branded apps hold
great potential for increasing shopper engagement and building loyalty, but they aren't all created equal.
As commercial real estate begins to recover from "the Great
Recession," most professionals expect a new normal that involves a blended shopping
experience, rather than a return to the good old days for all types of retail, including grocery.
Growth opportunities available from “cracking the code” of big data related to shopping behavior is moving retailer-manufacturer collaboration to a whole new level, and participants are reaping competitive advantage.
subscription economy is booming in the UK, and there are lessons there for the
US and beyond. Here are a few examples from a recent Telegraph article; these companies
are built around the concept of "delivering solutions.”
Canadian grocer Longo’s
recently launched a mobile app for
both iPhone and Android platforms that’s producing more sales, more
visits, and greater shopper engagement. It's becoming increasingly clear
that strong digital connections are emerging as a way for retail to
MySupermarket.com certainly upped the ante on price transparency when
they made it possible for shoppers to compare prices across major online
retailers -- but they're also expanding the definition of great
Chipotle’s recent video and game are getting
lots of attention from consumers and
professionals. It's a terrific example of how content marketing works in social media by using stories to connect with customers on an emotional level.
Good Eggs, a “farm to fridge” food aggregator, only sells products that customers
have already ordered. It's one of the new “food hubs”
that are connecting farmers and retailers/consumers in entirely new ways.
The cost-effectiveness of traditional advertising is eroding. TV ad spending approached $65 billion last year vs. $3 million for digital video – but guess which one grew 45% and which one grew 6%? Programmatic ad buying is going to accelerate this trend.
Monetizing social data has been difficult because “contacts”
don’t necessarily translate into influence on other people's buying decisions. The true influencers are the ones you want, and Pursway is applying big data techniques to customer data bases to find them.
Now that Weis Markets offers online grocery shopping with store pick-up at 14 locations, their customers are routinely reminded of
the benefits of online shopping. This will certainly help accelerate the
growth of the practice, and it gives Weis a point of difference in many markets.
Canada’s Metro supermarkets launched a re-vamped “digital ecosystem”
last week, featuring a more intuitive and personalized website and an iPhone
app that can sync with the site. It's a big step forward in delivering on their personalization promise to shoppers.
Aisle50 provides savings to consumers who buy a branded
product online and are willing to pick it up at their food store and use the store's
loyalty card to facilitate the transaction. The shopper gets savings, the CPG brand gets a sale, and the retailer gets a visit from the customer. Sweet.
IKEA Family, the retailer’s unique loyalty program,
works because the focus on “a better everyday life” keeps them customer-centric and the
intent to serve “many people” ensures engagement with mainstream customers.
Customer satisfaction with brick-and-click/omnichannel retailers dipped below that of pure-play etailers for the first time since May 2012 in the Opinion Lab's Customer Feedback Index ratings. Check the performance by function for
snapshot of the two channels' strengths and vulnerabilities.
Can the flat-fee pricing model that Netflix applies to TV and
Spotify applies to music work for books? Maybe, maybe not, but the attempt is more evidence that digital devices are opening up opportunities to experiment with pricing models.
Ocado's CEO and cofounder Tim Steiner believes that
increasing online grocery’s appeal to the mass market will generate the tipping point for online food shopping. Our POV? The effect on brick-and-mortar stores will differ depending on how they respond.