The behaviours shaping loyalty in the grocery channel

A new report has highlighted the opportunities for grocers and retailers to maximise customer engagement using their loyalty programs.

Rising inflation, a continuing cost-of-living crisis and evolving consumer expectations and behaviours are presenting retailers with both significant challenges and new opportunities.

This is according to a survey of more than 1,300 consumers and almost 200 loyalty program managers in North America, Asia, Australia, and the UK. Conducted by global digital marketing technology company, Eagle Eye, it examines what consumers look for in a loyalty program, what brands are currently investing in, and what retailers should be focused on to engage shoppers.

Among the report’s overarching findings are three areas of opportunity for retailers to engage customers, using their loyalty programs to improve the experience and keep shoppers coming back: advanced personalisation, marketing in the moment, and gamification.

Tim Mason, CEO, Eagle Eye, says it’s an uncertain environment for retailers, but consumers are primed to appreciate the value of loyalty.

“Grocery retailers are uniquely positioned to use their loyalty programs to deliver the savings their customers demand and the experiences they’ve come to expect.”

According to the report, Grocery’s Great Loyalty Opportunity, 58 per cent of consumers are eating and drinking out less as a direct response to inflationary pressures, highlighting the opportunity for grocery retailers to engage with their customers more effectively to reap the benefits of increased grocery spending.

It also found that 84 per cent of consumers believe personalised recommendations will help them save at the shelf, and 71 per cent of consumers would either consider buying a product or find the information helpful if they received a promotion or offer while shopping in a store.

Other findings included:

  • 66 per cent of consumers would participate in games, contests or challenges through a company’s loyalty program.
  • 64 per cent of consumers are buying more items on sale.
  • 69 per cent of consumers state ‘value’ as being the top benefit they want from a loyalty program.
  • ​54 per cent of loyalty program managers said they plan to make it easier to earn and redeem points through the loyalty program in the next 3-6 months.

These data points and others in the report illustrate why retailers should prioritise creating a grocery loyalty program that gives consumers what they want: value and personalised experiences.

Retailers that can successfully use personalisation to make their customers’ lives easier, execute one-to-one communications at precisely the right moment for the right individual and incorporate gamified interactions that improve the overarching experience will be those that will win their customers’ loyalty.

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