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Retailers Believe Digital Shopping Makes Shoppers Less Loyal

digital Incisiv

Last updated on April 3rd, 2023 at 09:47 am

Recent research by Incisiv, conducted in collaboration with FMI – The Food Industry Association and in partnership with Loyal Guru, has found 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 platform, integrating with digital channels and offering personalized experiences that meet the needs and expectations of shoppers.

“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 Incisiv and Grocery Doppio.

Key takeaways from the report include:

  • Seventy-four percent of grocers believe that digital shopping has made shoppers less loyal;
  • Eighty-eight percent believe that a poor third-party experience negatively impacts shopper loyalty; and
  • Seventy-six percent 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 percent 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 for grocers to prioritize technology and infrastructure investments to stay ahead of the competition and meet the evolving needs of their shoppers.

“As interest rates and inflation continue to rise in 2023, its clear shoppers are making more mindful decisions around their spending habits,” said Borja Sanfeliu, CEO, Loyal Guru.

“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.”

Doug Baker, VP 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.”

Register here for a webinar on March 29 that will discuss the findings of the study and dig into areas of grocery loyalty and the digital experience.

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