Progressive Grocer Independent

DEC 2016

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December 2016 | Defining the Independent Market | 17 For the majority of the total grocery market, this means using a website (83 percent), email (79 percent), social media (74 percent) and a mobile app (62 percent). Other methods used by a sizable minority of grocers include in-store kiosks (47 percent) and text/SMS messaging (43 percent). (See Figure 2.) Independents fall largely in line with these overall market numbers, except for the use of mobile apps, where they lag by 20 percentage points, with only 42 percent indicat- ing that they use a mobile app for marketing to customers. And 4 per- cent note that they use none of these digital marketing methods. While that number may seem negligible, it is still too high and should rightly be at zero, which is where the chain stores fall. Grocery is highly promo- tional, so it's not surprising to see, for the most part, deep adoption of digital marketing techniques. Frequency is critical for digital marketing, and too much of it can be counterproductive. No doubt this is why a majority of grocers in the total market prefer weekly over daily communication. Specifically, this refers to weekly email (57 percent), the website (53 percent) and mobile apps (51 percent). One has to wonder whether this best practice is based on testing or is simply a continuation of the traditional weekly-circular ap- proach. (See Figure 3.) e three mediums that score highest for daily frequency for the total industry are social media (43 percent), in-store kiosks (41 percent), and websites (40 percent). Interest- ingly, mobile apps scored lowest for daily marketing messages, at 31 per- cent, which is problematic because it's the one medium that customers are most likely to use in stores, and therefore the most likely opportunity for in-the-moment marketing. Independents actually rank higher in all categories than the total industry when it comes to daily com- munication, especially with regard to their websites (51 percent daily versus 40 percent weekly), social media (60 percent daily versus 20 percent weekly) and in-store kiosks (65 percent daily versus 12 percent weekly). Where the total industry may struggle with daily communica- tions via mobile apps, indies knock it out of the park (52 percent versus 31 percent in the total industry). How- ever, email wins out in the realm of weekly communication (55 percent weekly versus 38 percent daily). Loyalty Programs and Coupons Sophisticated loyalty marketing techniques differ sharply from methods used in mass-marketing campaigns — even those that target specific market FIGURE 2 Which digital marketing methods do you use? Total Independents Use at least one 99% 96% Website 83 85 Email 79 80 Social media 74 80 Mobile app 62 42 In-store kiosk 47 49 Text/SMS 43 51 FIGURE 3 How often do you communicate using each of the following digital methods? DAILY/WEEKLY (NET) DAILY WEEKLY MONTHLY AS NEEDED Total Ind. Total Ind. Total Ind. Total Ind. Total Ind. Website 93% 91% 40% 51% 53% 40% 1% 2% 7% 7% Email 91 93 34 38 57 55 2 2 7 5 Social media 88 80 43 60 45 20 4 5 8 15 In-store kiosk 87 77 41 65 46 12 7 8 7 15 Mobile app 82 67 31 52 51 14 5 0 13 33 Text/SMS 73 65 29 35 44 31 2 4 25 31

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