The Case for Shopper-Centered Grocery
The moment to modernize
Once grocers know their customers better, they can become part of their everyday lives. And yet, to deliver new products and services effectively, grocers also need to embrace transformation. It’s one thing to recognize what customers want, another to provide it at the right moment.
One challenge will be to modernize end-to-end operations so that it’s possible to capitalize on predictive insights secured from data. Digitizing the supply chain, for example, enables grocers to cut costs, reduce wastage and, above all, ensure that customers can get what they want quickly, while making it easier to change the offering overnight in line with evolving consumer trends.
Using technology to upgrade the workforce also yields dividends, as staff, from the store to the distribution center, can focus their efforts on differentiating the offering. Automation technologies are a good example of modernization in practice, in that they provide an opportunity to free up workers for higher-value, customer-facing work, or to generate savings that can be reinvested in an augmented customer experience. At the same time, analytics tools can help grocers identify skills gaps so that shortfalls can be closed or mitigated through third-party collaborations.
Table stakes in a shifting sector
Grocers that embrace some of the opportunities outlined in this article are in a powerful position to gain ground over competitors, including new digital entrants – that can compete on price yet can’t provide the shopping experience that consumers value – as well as longstanding rivals such as wholesalers and discount stores.
With better use of data to generate predictive insight, a willingness to use this insight to experiment with innovative customer offerings, and a fresh approach to the role that technology can play in supporting the workforce, grocers can build closer relationships with consumers than ever before – and secure a greater share of their sales.