New report from Incisiv and FMI indicates that loyalty in the digital age is hard to win and easy to lose; explores investments in technology and infrastructure for loyalty transformation
Recent research by Incisiv, conducted in collaboration with The Food Industry Association (FMI) and in partnership with Loyal Guru, shows that maintaining shopper loyalty in the digital grocery industry is a growing challenge. The report, “Shopper Loyalty in the Digital Age,” highlights the importance of offering a seamless omnichannel experience for shoppers to foster loyalty, including providing a well-designed digital platform, integrating with digital channels, and offering personalized experiences that meet the needs and expectations of individual shoppers.
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“In order to maintain digital shoppers and foster loyalty, seamless and personalized omnichannel experiences are necessary to succeed in today’s highly competitive landscape. These insights offer practical investment considerations for business leaders.”
Key take-aways from the report include:
- 74% of grocers believe that digital shopping has made shoppers less loyal.
- 88% believe that a poor third-party experience negatively impacts shopper loyalty.
- 76% of grocers believe that a poor web and mobile experience reduces shopper loyalty.
Despite these challenges, the report indicates that improving shopper loyalty has become a critical aspect for grocery retailers. According to the report, 71% of grocers say that improving shopper loyalty is a C-level priority in 2023. With the rise of digital grocery sales, it is more important than ever for grocers to prioritize technology and infrastructure investments to stay ahead of the competition and meet the evolving needs of their shoppers.
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“Digital transformation has revolutionized the convenience of grocery shoppers, but it also poses a challenge to traditional loyalty. Grocers must recognize that poor digital experiences can lead to lost loyalty, and thus prioritize building a digital-focused loyalty program that enhances the omnichannel shopper journey,” said Gaurav Pant, chief insights officer of both Incisiv and Grocery Doppio.
Doug Baker, vice president of industry relations at FMI, said, “In order to maintain digital shoppers and foster loyalty, seamless and personalized omnichannel experiences are necessary to succeed in today’s highly competitive landscape. These insights offer practical investment considerations for business leaders.”
“As interest rates and inflation continue to rise in 2023, its clear shoppers are making more mindful decisions around their spending habits. As a result, grocers are reporting more engagement with loyalty programs that offer exclusive deals and discounts, private label growth, and a need to explore new monetization opportunities. In this regard, the hottest topics right now revolve around next-gen loyalty solutions, retail media, and building stronger customer relationships via technology,” said Borja San Feliu, CEO, Loyal Guru.