If I had a dollar for every time I’ve heard or seen the term “personalization” in the past six months, I would be headed out for a very nice dinner.
Alas, no such deal in place, so no extra dollars for dinner, but I have gained an understanding of ways in which retailers are increasing loyalty and profits by tailoring the shopping experience to customers.
At the NGA Show, one retailer noted that, with its analytics setup and loyalty program data, it can pinpoint top shoppers by phone number and alert cashiers when those folks arrive at the register. The notification provides a reminder for the cashiers to deliver top-notch customer service to the store’s most faithful shoppers.
In an era of unprecedented competition for food dollars, every positive impression is critical.
Another retailer mentioned that, with the help of artificial intelligence, the company sends 300,000 unique e-mails every week, delivering special pricing based on what different shoppers regularly purchase.
The cost of the technology that enables this curated approach has fallen significantly in recent years, but personalization isn’t confined to the realm of technology.
One speaker at the NGA Show gave the example that dollar stores have adjusted pack size, brand assortment and price points so that their core shoppers — who might well be looking to get through the store with $20 — can get what they need in a single shop. Another retailer put a snacking tomato bar and a potato bar in a new store so shoppers could select different varieties to try.
Part of personalization is meeting customers where they are — hence the push to have a presence on any number of social media platforms — but again, that doesn’t necessarily mean tech wins the day. One retailer changed its paper circular program only to meet with considerable resistance. Digital is the future, but print is still the preferred deal delivery mechanism for many shoppers.
All that said, investing in technology is essential.
“If you don’t fight the giants with the same tech they’re using, you’re going to get bowled over,” one speaker said at the NGA Show.
Listening to various sessions at that show — and at Groceryshop, an event that focuses on the intersection of retail and technology — it seems clear to me that grocers have the trickiest of tasks ahead: to embrace, explore and leverage artificial intelligence and personalized offers while continuing to deliver the fundamentals that endeared them to shoppers in the first place.
Think about the data Amazon already has on its shoppers and how well it has deployed that knowledge; one NGA speaker said that 35% of Amazon’s revenue is derived from sales of the “recommended for you” suggestions that are generated by artificial intelligence. Now imagine how much more powerful that capability will be if Amazon builds its physical footprint as expected and gets weekly data on many of its Prime members.
Grocery retail might be a more difficult business now than it’s ever been, but the opportunities are similarly vast. It’s always scary to take big chances, but now’s the time to take them.
Ashley Nickle is editor of Produce Retailer magazine and retail editor of The Packer. E-mail her at [email protected].