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.

  1. 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.

  2. 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.

  3. 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.

  4. Expand owned brands—Expanding the assortment and increasing loyalty offers for owned brands maximizes grocer margins.

  5. 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.