E-commerce
New 'reality' for grocer segment: online shopping, deeper shopper expectations
November 4, 2020
The three top new realities facing the grocery industry are online orders, a larger customer base and increasing shopper expectations regarding grocery purchase, according to a Mercatus survey conducted by Brick Meets Click.
As of August this year the number of monthly active users of grocery delivery and pickup in the U.S. hit 37.5 million households, representing a huge bump up compared to 21.4 million in August, 2019. Much of the 133% spike was due to the ongoing COVID-19 pandemic, according to the survey.
"If you want to catch more fish, you need to fish where the fish are, and winning back lapsed customers represents the strongest and nearest-term opportunity," David Bishop, partner, Brick Meets Click, said in a press release on the findings. "We estimate that the size of the lapsed customer segment includes 23.6 million households who received one or more grocery delivery or pickup order since March 2020 but none during the month of August."
The average grocery order value also spiked in the past year, by 32% versus a year ago.
"These insights suggest that as more customers become regular users of the service, retailers will need to improve their merchandising capabilities. That includes cross-, suggestive, and up-selling, in order to build larger rings," Bishop said in the release. "And, while allowing customers to customize dietary and/or product preference is helpful, integrating past-purchase from in-store transactions will offer a more seamless way to support personalized recommendations."
The survey noted it is important for grocery retailers to "recognize that improvements to the ship-to-home experience and seamless and positive experiences with mass providers will frame expectations for those same customers when using a grocery service."
"Despite the new realities of online grocery shopping, the customer experience remains a key driver of grocery retailers' success," Sylvain Perrier, president and CEO, Mercatus, said in the release. "To sustain and grow online brand affinity, grocers must ensure that the digital channel complements retailers' overall brand strategy and physical retail channels to create a consistent and seamless experience in line with what consumers want today."
Brick Meets Click, an advisory firm, conducted the survey Aug. 24-26, 2020, polling 1,817 adults who participated in the household's grocery shopping.
