5 Ways Grocers Can Differentiate and Drive Revenue in the 2H 2024
Alex Tavera, Head of Strategy, Annex Cloud
Grocery retailers have their work cut out for them given continual increases in competition and costs. But there are shopper-focused ways to stand out, gain market share and drive growth—and loyalty programs can fuel these opportunities.
Here are five strategies that can help grocers taste success throughout the remainder of this year.
- Personalize offers based on behavioral segments—According to Deloitte, 87% of grocery retailer executives said marketing will become hyper-personalized, shifting from selling to the average consumer to a more individualized approach. For example, customize offers for shoppers who buy fresh produce versus fresh meat versus dry or frozen foods. These can be loyalty related or gated for loyalty members. Leverage push or wallet notifications to send offers and integrate them into the shopping experience.
- Focus on convenience—Shoppers value speed, ease and flexibility. Look for ways to expand delivery services and make checkout and payment easier. Consider adding a paid membership that delivers extra value and benefits that simplify tasks such as recipe and meal planning, grocery lists or personal shopping.
- Leverage the value of partnerships—Extend beyond groceries with partnerships that allow you to provide value throughout your shoppers’ daily lifestyle—for example, travel perks, streaming discounts, etc. Not only does this give grocers more reasons to communicate with loyalty members, but it also provides opportunities to monetize the loyalty program. For example, Walmart+ and Expedia.
- Expand owned brands—Expanding the assortment and increasing loyalty offers for owned brands maximizes grocer margins.
- Lean into in-store member events—Value comes in many forms. Consider offering classes or expert workshops on beauty, cooking, even health and wellness—an increasing priority for both older and younger generations.
It’s time for grocery retailers to spice up their growth strategies and end 2024 strong, and loyalty programs can be an essential ingredient.
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This study was conducted in Fall 2023 as the fourth annual installment of a grocery ecommerce study that Ipsos has conducted since 2020. This study was designed to differentiate between three different fulfillment methods of obtaining grocery orders: In-Store Pick-up, Curbside Pickup and Delivery.
The approach was 2-pronged:
- Step 1: Ipsos conducted a 7-minute survey of 1,200 Americans to understand which elements of grocery pick-up and delivery are most important to consumers. The survey was conducted October 25, 2023. A Key Drivers Analysis was conducted to identify the top drivers of “Likelihood to Use Brand Again for grocery ecommerce” using Ipsos’ proprietary Ipsos Bayes Net (IBN) modelling technique.
- Step 2: Ipsos then deployed their panel of trained mystery shoppers to measure brand performance across a specific set of elements related to grocery pick-up and delivery. Roughly 33 mystery shops per method (In-store Pick-up, Curbside Pick-up, Home Delivery) were conducted for each qualifying retailer. Retailers were only shopped for methods they offered, so in some cases sample was redistributed appropriately across offered methods. Geographic representation was ensured across 4 regions (West, Midwest, Northeast, South). Mystery shops were fielded between October 23 – November 17, 2023. The relative importance of each service element ascertained from Step 1 was applied as a weighting factor to the Mystery Shopping results.
For a full copy of the results or to participate in Ipsos’ next ecommerce study (coming Fall 2024), contact Silvana Daehn at silvana.daehn@ipsos.com.
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At Ipsos Channel Performance, we partner with our clients to understand their shoppers and how they shop. We measure the execution of brand promises. We drive compliance and sales conversion. We improve performance across all sales and service channels – physical, contact center, and digital – and help deliver profitable growth. Learn more.
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Contact: Silvana Daehn
Email: silvana.daehn@ipsos.com.
