Progressive Grocer Independent

DEC 2016

Issue link: http://magazine.progressivegrocer.com/i/758904

Contents of this Issue

Navigation

Page 17 of 35

segments. e difference with loyalty marketing is not just that you know a lot about every customer in the cohort, it's also that you know their names, ad- dresses and even financial information. Grocers have been pioneers in the adoption of loyalty marketing going back decades, so it's not surprising that 76 percent of all grocers current- ly have a loyalty program in place. (See figure 4.) Of grocers with loyalty programs, the majority of the total market (53 percent) say that they attribute 6 percent to 10 percent of sales to their loyalty shoppers (defined as those who are members of the grocer's loy- alty program). A quarter (25 percent) of grocers say that figure is higher, between 11 percent and 15 percent, and for nearly a fifth (18 percent), the amount of sales attributable to loyalty shoppers is greater than 15 percent. (See Figure 5.) Independents fall a little behind the industry as a whole when it comes to loyalty programs, with 69 percent offering them. However, independents attribute more sales to their loyalty shoppers than the rest of the market, with 31 percent indicat- ing that more than 15 percent of their sales come from such shoppers. In their dreams, grocers might wish that 50 percent of their sales were attributable to loyalty shoppers, but a number that high isn't neces- sary to leverage the opportunities that a good loyalty program affords. Possessing a deep understanding of loyal shoppers, a group that produces 10 percent or more of sales, is an invaluable resource. It not only serves as an ideal base for building market- ing campaigns, such as a digital cou- pon offer, but by analyzing buying patterns within this group, the gro- cer also can fine-tune merchandising plans, product assortments, demand forecasts, pricing and markdowns. Digital coupon offers have become a standard practice in retail today, and 78 percent of all grocers say they deploy them; 71 percent of independents offer digital coupons. Of these, 79 percent of all grocers of- fer digital coupons via their websites and 73 percent offer them via text message. Independents are largely in line with these numbers, at 78 percent and 68 percent, respectively. But independents have taken the lead when it comes to loading the offers directly to loyalty cards, with 35 percent offering this capability, compared with only one-fifth of the total market. (See Figure 6.) Omnichannel Services As the name indicates, omnichannel technologies and services encompass a broad range of capabilities. Here are key omnichannel findings from the study: • Smartphones and apps are the wave of the future, so it's not surpris- ing to learn that more than half (55 percent) of all grocers have a unique, FIGURE 7 Do you have a unique, branded native mobile app? Total Independent Yes 55% 42% No, but plan to offer one in the next two years 25 29 No, and have no plans to offer one 19 29 FIGURE 4 Do you have a loyalty program? Total Independent Yes 76% 69% No 24 31 FIGURE 6 Do you offer digital coupons? Total Independent Yes 78% 71% No 22 29 FIGURE 5 What percent of sales do you attribute to loyalty shoppers? SALES SHOPPERS Total Independent 1%-5% 3% 6% 6%-10% 53 49 11%-15% 25 14 More than 15% 18 31 Technology 2016 Survey 18 | Progressive Grocer Independent | December 2016

Articles in this issue

Archives of this issue

view archives of Progressive Grocer Independent - DEC 2016