Customer Service
How groceries of any size can boost growth beyond COVID-19
Bagrat Sataryan, CEO, Local Express, lists out several attributes grocery and supermarket retailers need to incorporate into the online presence to achieve growth post-COVID-19.
December 29, 2020 by Bagrat Safaryan
With the significant changes that the grocery industry has undergone this year, online grocers are now more common than ever, with studies showing that nearly 70% of shoppers have purchased groceries online in 2020. In fact, the industry hit a record $7.2 billion in total online sales last June.
This sustained surge in e-commerce has had an effect on groceries both large and small, often in interdependent ways. Take Walmart's recent announcement, for example: Their $98 annual membership for unlimited grocery deliveries will undoubtedly impact their brick-and-mortar competitors.
The decisions grocery stores make to meet both the increase in demand and the new competitive landscape will determine their position far beyond 2020. Grocers of all sizes have had to establish effective online stores to compete during the pandemic, but what attributes should they incorporate into their online presence after the pandemic?
Data and personalization
Consumers are used to getting the right product at the right time, through online navigation and checkout processes that have been tirelessly engineered to minimize clicks and maximize conversion. In short, customers expect a personalized shopping experience, no matter the product.
Personalization is a great way to make the online shopping experience easy for the customer, helping them to save time. However, many online grocery stores do not incorporate personalization or other time saving tools for the user: in fact, among online grocery shoppers who say they have shopped online for groceries just once in the past 12 months, only 42% report that the online experience saves them time.
Personalization tools can be embedded into the online platform at multiple stages, such as through customized digital flyers. Grocery customers are more than likely to buy similar items each time they shop, and retailers need a complete picture of shoppers' purchase histories to power these recommendations.
Additionally, advances in matching algorithms have allowed for next-generation personalization features based on complementary tastes or expert suggestions, rather than solely on past purchasing patterns. The grocers that are able to provide a wide range of options will be the most favored among consumers — in fact, they will command a huge lead over their peers that cannot outdo them on selection.
By implementing a plan to collect the right data in order to better individualize the shopping experience, e-grocery retailers can pull ahead of the competition through a loyal customer base. It is critical, especially niche stores, to own, manage, and utilize these valuable customer data.
Flexibility
For those who were forced to try online shopping for the first time because of quarantine measures, their experience must be satisfactory to encourage them to stick with their new online grocer after the pandemic.
The online grocery services that are flexible and that are best able to handle surging order volumes will retain their customer loyalty after the pandemic subsides. Shoppers will be accustomed to relying on these services to consistently bring them the most essential items.
These same customers were completely accustomed to an in-store only experience as recently as last year, yet they've adapted in light of new events and changes. Retailers must also reimagine each step of the shopping journey to remove friction in the online experience, which encourages repeat use to make the process even easier.
One way to achieve this is by engaging customers where they prefer to shop. More and more shoppers — as much as 70% more — are ordering via mobile platforms on iOS and Android. The ease with which users can navigate these apps is critical to future online ordering.
To emulate the in-person experience, it's essential that customers can select products by weight, piece,package, etc. There's no easy way to provide exact weight online, so if there are questions, a retailer must be able to contact the customer in real-time, most likely via text message while the employee is preparing an order. Additionally, retailers must give consumers the ability to add a large number of items to their carts — a shopper could have up to 100 items, and grocers need an e-commerce platform that can handle that.
There's more that retailers can do to enhance their business strategy, such as extending delivery hours or offering both scheduled curbside pickup and home delivery options. The same can be said for flexible payment options: soon, customers will expect to be able to pay in-store and ship to home out-of-stock items, or pay online and pick up in-store. These changes will help revolutionize the grocery experience as grocers remain flexible to meet demand.
New technology
One interesting side effect of early 2020's has been a reduction in choice for grocery shoppers due to supply chain disruptions, both online and in-store. This comes right at a time when shoppers are looking for new food categories and taste experiences, particularly online, as people become more accustomed to dining at home, even for special occasions.
To manage their expanded categories, grocers can use technology to manage inventories, and sync their online and in-store product availability (e.g. through smart shelf technology). Retailers must optimize the additional product offerings by utilizing technology-based category management tools and practices. This includes making the most of seasonal events and promotional opportunities, where grocers must have an adequately broad range to increase upsale. In the same way that candles and cakes are situated close together in-store to optimize sales, grocers need to take this same approach online.
The shifts in the way groceries meet their customers' demands has created daunting changes, however retailer technology adaptation is key. One company, Associated Food Stores, a cooperative that supplies supermarkets, has even started to build what it calls "pandemic pallets" of organizing, sanitizing, and tracking products. "We will never again operate our business as unprepared for something like this," one executive noted in an interview. Again, leaning on technology to adapt and streamline the supply chain for the ultimate benefit of having the right product available at the right place, safely.
Whether small, large, or in-between, grocery stores that seek to not only survive but thrive past 2020 must adopt a similar mentality. Preparation, based on consumer demands, is the difference between keeping fresh with consumer demand, or wilting due to a lack of innovation.
Bagrat Sataryan is CEO of Local Express
About Bagrat Safaryan
Subscribe
Get the latest news and resources from Retail Customer Experience.
