As the supermarket industry becomes increasingly fragmented, retailers are working steadfastly to evaluate consumers' changing expectations and provide a more personalized experience -- not only to infuse a greater number of shoppers into their stores, but to also retain members of their current shopper base who may find competitors' offerings more appealing.
As a retailer who understands this all too well, Raley's Family of Fine Stores has expanded its relationship with science and data analytics provider Dunnhumby to better personalize the shopping experience for its customers and more thoughtfully curate the price/value proposition of its product selection.
Following an in-depth SKU rationalization audit, Raley's leveraged its Something Extra Member (SE) data, along with a series of additional Dunnhumby tools, which enabled the grocer to garner customer information and evaluate products based on preference and importance, as opposed to the traditional sales-based model, Chelsea Minor, Raley's director of communications, told Progressive Grocer.
"Something Extra is focused on delivering offers, information and experiences based on what our customers are interested in purchasing today," Minor said, adding that Raley's is not in the business of "forcing customers to spend money on items they don’t want nor set unrealistic targets for their spend."
One such program that has benefited immensely from the partnership with Dunnhumby is the grocer's "Raley's Dailies," a platform through which customers can save on thousands of products throughout the store. Referencing its SE data, Raley's discovered that "customers were not linking 'Raley’s Dailies' to value," Minor said.
In an effort to expand customer knowledge of the savings opportunities, Raley's relaunched the program with improved communications and a modified list of products that are purchased most by customers who are seeking value, Minor added.
"Through the SE data, our team is able to judiciously invest in products that are the most important to our customers," she said, noting that "behavioral data drives the targeting in our one to one communications, which drives engagement with our customers weekly."
As Raley's continues to implement customer data into its operations, the West Sacramento, Calif.-based grocer is confident it will be able to swiftly anticipate customers' needs and deliver on that value proposition.
"Understanding customer sentiment and the impact that has on their overall shopping experience will greatly influence our ability to be a leader in the grocery industry," Minor concluded.
Raley's operates stores in northern California and Nevada under four banners: Raley’s Supermarkets, Bel Air Markets, Nob Hill Foods and Food Source. Late last month, the grocer unveiled plans to build its first smaller-format store -- at 36,000 square feet -- in the Sacramento neighborhood of Arden. The location will break ground in early to mid-2016, with plans to open in the second quarter of 2017.