Shoppers aiming to live frugal lifestyles are buying raw ingredients in bulk. They’re also shopping with meal planning in mind to reduce food waste.
These trends present a real opportunity for grocery stores to capture and analyze loyalty program membership data for customer insights. Some of the most successful supermarket loyalty programs use personalization, digital integration, immediate rewards, cross-brand synergy, and philanthropy to build customer loyalty.
Fresh and Frugal
According to consumer spending data, Americans spend an average of $5,703 yearly on groceries. That’s a lot of money, so it’s no surprise that many consumers seek ways to save on their grocery bills. Fortunately, several strategies can help shoppers reduce food spending without cutting back on healthy meals.
One of the most effective ways to lower your grocery bills is to shop at stores that offer low prices. You can also compare prices across grocery stores to see which offers the best deals on each item you regularly purchase.
Another way to cut your grocery bill is to limit impulse buys. Using a smartphone or handheld calculator to add up the cost of each item as you go down an aisle can help you avoid overspending on items you don’t need. It’s helpful to remember that buying pre-cut veggies or shredded cheese can be more expensive than a block of the same product, so opt for the unprocessed version of these ingredients when possible.
You can also cut your grocery costs by buying food in season. It costs more to ship produce worldwide, so you’ll usually pay a premium for out-of-season fruits and vegetables. Planning meals and sticking to a specific grocery list can help avoid buying unnecessary items, like two stalks of celery or a handful of chopped olives, that won’t be used.
Targeted Marketing
Grocery loyalty programs are practical tools for driving foot traffic to stores and online offerings, but they must be appropriately advertised to make an impact. The best way to get the word out about your new rewards scheme is to promote it outside your store on TV, in magazine ads, on the radio, and billboards. Alternatively, use PPC or social media to target your prospective audience.
Incorporating data analytics into your grocery loyalty program will allow you to provide a personalized experience that will make shoppers feel understood and valued. You can offer checkout coupons or instant discounts specific to members only. It will allow customers to save money instantly and reinforce that they have a reason to keep shopping at your store.
Personalized experiences are what today’s customers expect from their grocery stores and food & beverage brands. A recent survey found that 90% of respondents said they are more or more likely to do business with a brand offering personalization. It can be achieved with a robust omnichannel customer loyalty strategy that includes seamless ecommerce integration, deep data analytics, secure client-side customer loyalty software, and strategic consultation.
Zero-Party Data
In addition to offering unique perks, grocery loyalty programs collect valuable zero and first-party data from consumers. By tracking every purchase made by a member, grocery stores can identify their purchasing habits and preferences in real-time and deliver relevant offers and recommendations across all touchpoints. 80% of shoppers want this type of personalization from their retailers, which can help them feel valued as loyal customers.
Traditionally, grocery loyalty programs have been based on plastic cards swiped at checkout, providing members exclusive rewards and discounts. However, as the loyalty landscape evolves, more and more grocers are ditching these plastic cards in favor of digital solutions that make it easy for customers to track purchases, redeem rewards, and get personalized offers across all channels.
Tiered loyalty program structures can also offer a sense of progression for customers, motivating them to spend more to unlock higher-level benefits and reward tiers. These programs can also integrate social and environmental causes to resonate with customers who seek alignment between their values and purchasing decisions.
Personalization
Grocery loyalty programs provide retailers with the data to offer personalized service. The data includes frequency and order volume, preferred products, and tier status. This information is valuable to the customer as well as the retailer. That is especially true as the industry moves toward personalization of service.
Groceries and food and beverage retailers face challenges leveraging customer data to deliver personalized experiences. The industry’s thin profit margins limit the value of customer loyalty points and rewards based on purchases. These loyalty programs are an excellent opportunity for grocery stores to offer unique, customer-centric offers that drive brand value and customer retention.
Conclusion
Traditionally, grocery loyalty programs offered plastic cards that customers kept in their wallets and purses to receive discounts or bonus points. Then, they were scanned at checkout. This simple point-and-reward mechanic incentivizes repeat visits and adds an element of gamification as customers work to accumulate more points and reach higher tiers.
In a highly competitive and regulated marketplace, grocers must find new ways to create value for their customers. Traditional grocery coupons and member pricing will only cut against competitors in the long run. It’s time for grocers to look to loyalty programs to drive a better experience and create emotional connections with their customers.
