Supermarkets and grocery stores continue to serve an important function in the lives of most consumers. While there has certainly been a shift to online grocery purchasing and food purchases through mass merchandisers, drug stores, and major supermarket chains, there is still demand for independent or smaller grocery store chains that meet the needs of local neighborhoods.
The increase in digital grocery sales will continue to put pressure on smaller markets that rely more heavily on in-person shopping. According to eMarketer, US digital grocery sales grew 63.9% year-over-year (YoY) in 2020 and will grow another 12.3% in 2021, reaching $122.39 billion. By 2025, digital grocery sales are projected to reach $243.67 billion.
While local grocers are increasingly getting into the online ordering and delivery market, several operational factors that impact both in-store and digital customers must be managed in order to maximize CX, and prevent customers from fully migrating to other options.
Operational improvements in the following areas can drastically improve CX, and generate deeper relationships with customers, helping drive increased customer loyalty and sales.
Product Availability and Visibility
One of the most important factors in customer satisfaction is product availability; customers generally will return to stores where they are able to find all or nearly all of the items on their list in a single trip. In a period marked by supply chain disruptions, customer satisfaction can dip, especially with respect to hot, in-demand items, such as paper goods or meat products. This factor affects both in-store shoppers and those that choose to order online through the grocery’s web app or third-party delivery service.
While grocers are often unable to control out-of-stocks, they can implement several procedures designed to lessen the frustration for customers.
- Implement a real-time inventory system that can synchronize with in-store stock levels to provide more awareness of low stock conditions, letting customers know that the item is in high demand. Further detail on when restocks are expected; providing the customer with an email, text message, or direct message with the expected restock date can help them plan their shopping trip or digital shopping experience.
- If the product is out of stock, customers should be alerted to alternative products that closely align to the specific attributes of a product. For example, three alternatives to a product could be provided, based on unit price, quantity or size, or taste/flavor profile.
In an era when distributed information can provide meaningful insights, store employees should also be provided with supply chain and stock levels, so they can provide this information directly to shoppers, demonstrating that the store truly cares about the customer’s experience.
Customer Service
Beyond technology, grocers can improve the level of customer service, both in person and online, by taking a few basic steps.
- Train employees to initiate conversations with shoppers to ensure they can find what they are looking for, rather than waiting for customers to ask. While store employees are often busy trying to accomplish tasks, such as stocking shelves, a quick inquiry to ensure customers are finding what they want can go a long way to establishing a personalized touch they are unlikely to find at a big-box retailer or warehouse club.
- Use previous shopping data to alert customers of new, relevant products. Sending a loyalty club customer a personalized email highlighting a new product, along with a coupon, can demonstrate that the grocer is truly trying to connect and meet each individual customer’s needs.
- Reach out to customers via surveys to capture their feedback on the types of products and services they would like to see, either in-store or online. Many other businesses are collecting feedback after every interaction; grocers should similarly be capturing feedback on the types of products they offer, the shopping experience, and the specific actions taken by employees that helped or hindered their experience with the store.
Value
One of the most challenging aspects of grocery stores is managing and demonstrating value, particularly when competing against behemoths with significantly greater purchasing power. To retain and grow their customer base, supermarkets will need to offer their own value proposition across the board.
While reducing prices may seem like a viable strategy, it is generally not sustainable, given the challenges of competing against discounters and supercenters. Grocers need to focus on improving promotions that highlight the value they can offer, in terms of weekly specials, bulk discounts, and seasonal promotions (e.g., holiday giveaways). They also need to point out the personal touch they can provide (e.g., in-store assistance and expertise) that is often too difficult to obtain via other types of food sellers.
Grocers should use social media to effectively to communicate their promotions and brand messaging, especially to younger shoppers that seek out and consume media, ads, and content primarily through these channels. Ultimately, grocers need to communicate their unique strengths to shoppers across multiple buying channels, and demonstrate that they see customers as valued members, rather than simply transactions.
Author Information
Keith Kirkpatrick is VP & Research Director, Enterprise Software & Digital Workflows for The Futurum Group. Keith has over 25 years of experience in research, marketing, and consulting-based fields.
He has authored in-depth reports and market forecast studies covering artificial intelligence, biometrics, data analytics, robotics, high performance computing, and quantum computing, with a specific focus on the use of these technologies within large enterprise organizations and SMBs. He has also established strong working relationships with the international technology vendor community and is a frequent speaker at industry conferences and events.
In his career as a financial and technology journalist he has written for national and trade publications, including BusinessWeek, CNBC.com, Investment Dealers’ Digest, The Red Herring, The Communications of the ACM, and Mobile Computing & Communications, among others.
He is a member of the Association of Independent Information Professionals (AIIP).
Keith holds dual Bachelor of Arts degrees in Magazine Journalism and Sociology from Syracuse University.
