Initially due to logistical reasons, as well as consumer proximity to physical stores, groceries were not a natural fit for digital buying. However, many consumers find the convenience of online ordering, payment and delivery options, preferable to shopping in physical stores.
At the RichRelevance personalization summit in February we celebrated some of our most innovative customers in our personalization awards. One of these awards, Best Omnichannel Personalization Initiative, rewarded the retailer who made significant in-roads into connecting sales channels to improve the customer experience. Which we know is easier said than done.
At our recent Personalization Summit, RichRelevance recognized several customers who are innovating in Personalization with awards. One of the award categories recognized retailers who have shown the greatest initiative to engage in personalization best practices, optimizations and/or testing initiatives.
Segmentation is a fairly age-old approach to personalize marketing campaigns. Segmentation basically is grouping individuals into ‘buckets, called segments based on pre-determined interests, geography and/or demographics. For example, in grocery, a segment might be defined as “People over 50 who typically spend £50 a week in-store” or “Families with children under 5,” etc. Segmentation used to help marketers cope with the abundance of data and plethora of consumers, and allow them to “personalize” experiences at scale. The one problem with this is segmentation is never a truly personal experience.
At this year’s EMEA Personalization Summit we rewarded RichRelevance customers who are leading the way in personalization through data science, testing and innovation.
One of the most prestigious awards was for Personalization Innovator of the Year, which recognized the retailer who has demonstrated the most forward thinking initiatives and differentiated, innovative ideas in personalization that drove key performance indicators for the business.
Digital grocery shopping has completely changed the grocery game. For better or for worse, local and long established grocers are now competing with, a new category of competitors who are born out of the ‘direct to customer’ era. These new age grocery and niche grocery players ship everything from fresh dairy and organic meats to their own white label paper goods. With so much choice and category confusion it’s increasingly important for grocery retailers to invest in shopper loyalty and keep shoppers coming back and building their baskets.
A recent RichRelevance study into online grocery uncovered 59% of UK consumers and 63% of US consumers choose to shop online because of time saving benefits. Yet, for those of us with experience in shopping online, we know this isn’t always the case.
RichRelevance has uncovered through our experience working with a number of global grocery retailers, that there is a positive correlation between saving a grocery shoppers’ time and the ultimate size of their basket. The faster a shopper can locate the items they want to buy, the more likely the order will not only be completed but that it will be of a higher value.
The grocery sector presents some unique challenges for digital marketers impacting their ability to build profitable and sustainable online growth. From complex and expensive logistics, to an exploding ecosystem of ‘direct to customer’ competitors, already thin margins are being squeezed even further. However, with a wealth of customer data and insights, there is an enormous opportunity for grocery retailers to utilize technology and AI to strengthen the level of service they offer to their customers.