Destinations, Tech, Convenience Spur Customer Loyalty: Survey

In experiential retail marketing firm Interactions’ new Retail Perceptions study, “From Location to Destination Grocery,” a survey of more than 1,500 adult shoppers found that while price is the most important factor determining consumer shopping decisions, in-store events, along with promotions, exemplary service and convenience, are the ultimate drivers of customer loyalty.

“Our research has shown that retailers who can create memorable experiential destinations for their consumers will come out on top in the grocery store revolution,” said Ryan Dee, creative director at San Diego-based Interactions, which is part of Stamford, Conn.-headquartered consumables retailing expert Daymon Worldwide.

Key ways to improve the destination shopping experience are as follows:

• Focus on Products and Services Instead of Loyalty Programs: Most shoppers haven’t participated in a loyalty program in more than three years, or have never joined one. Loyalty, however, can be gained for reasons beyond price: Respondents to the survey valued a great product selection, a quick checkout process, a clean store, a good location and fresh product.
• Offer In-Store Events and Social Media: Shoppers are choosing to shop retailers that provide unique experiences both on- and offline. Sixty-two percent of shoppers surveyed would like to receive mobile notifications from retailers and of those respondents, 59 percent want to shop at a new grocery store because of in-store events and social media engagements.
• Create Mobile Apps With Useful Features: When downloading a grocery mobile app, the majority of shoppers surveyed would like the app to include coupons, and 73 percent want current pricing to be available. Further, shoppers want notifications of special events, product assortment, samples and recommendations from store associates.
• Make Shopping Convenient: Shoppers crave more convenient options, with 87 percent employing in-store pickup at least once a month and 77 percent having groceries delivered at least once a month. A significant percentage have also declined to shop at a grocery store because it was on an inconvenient side of the street.

“In my opinion, the most surprising findings from the survey were those that spoke to the frequency of shoppers’ use of services like grocery delivery (77 percent) and in-store pickup (87 percent),” Dee told Progressive Grocer. “While the industry is aware of the new convenience economy, I think there is a lag in innovation associated with these types of services. As shoppers become more protective of their time, we anticipate that loyalty will go to retailers who provide services that make shopping easier. Moreover, as ecommerce continues to proliferate, it behooves traditional retailers to provide relevant, unique and enticing in-store experiences, as this is one of the last areas where physical retail can truly differentiate itself.”

See the attached infographic for additional details.