Published on: January 29, 2018
New research done by analytics firm Precima and released at the Food Marketing Institute (FMI) Midwinter Executive Conference, held at the Trump National Doral in Miami, suggests that while “three out of five shoppers would shop at one store if they could have all their needs satisfied, 19 percent typically shop at only one store each week and only seven percent allocate more than 90 percent of their weekly grocery budget to their primary store.”
In other words, shoppers talk a good game when it comes to retailer loyalty, but they don’t live up to their words. Which means that retailers who think their customers are loyal to them likely are kidding themselves to at least some degree.
Graeme McVie, Chief Business Development Officer at Precima, said, “Food retailers need to take a more holistic approach to loyalty than simply viewing it as the domain of the loyalty team.”
What that means, the study says, is thinking “of loyalty as a comprehensive strategy based on insights gained directly from the shopper,” considering “loyalty as the outcome of daily decisions across pricing, promotions, assortment, space, marketing and store operations,” and going beyond “a two-tier price discount loyalty programs and provide differentiated value to shoppers.”
In other research released at the Midwinter event at Trump National, Nielsen and FMI released new results from ongoing Digitally Engaged Food Shopper research, concluding that “in as few as five-seven years, 70% of consumers will be grocery shopping online. Now, the estimated $100 billion spend, which is equivalent to every U.S. household spending $850 online for food and beverage annually, will occur by 2022 or 2024.”
The first year of this research first year of research predicted that consumer online food and beverage spend could reach $100 billion by 2025, but “the pace of change and adoption has far outrun initial predictions, where the pervasiveness of online engagement could cut the timeline by as much as half.”
Indeed, the study points to six organizational imperatives required for omnichannel competency.
• “Integrate digital offerings in parallel with brick-and-mortar operations.”
• “Scrub master data files for discrepancies; strength in data and accuracy is a critical component to successfully support online sale efforts.”
• “Integrate online and offline forecasting so the right amount of inventory is available to meet orders through either channel.”
• “Bring retailer and manufacturer shopper information together into a single, comprehensive view of customer insights.”
• “Optimize the management of omnichannel marketing and promotions.”
• “Manage the physical shelf and its digital counterpart to create a seamless shopping experience, where consumers see the same information both on or offline.”
FMI also announced a series of awards at the Trump National event:
• Oscar Gonzalez, co-president/COO, Northgate Gonzalez Market, earned the Robert B. Wegman Award for innovation and imaginative strategies.
• Jerry Garland, former president/CEO, Associated Wholesale Grocers, won the Sidney R. Rabb Award, recognizing his “commitment to the consumer, community and the industry.”
• Rob Bartels, president/CEO, Martin's Super Markets, Inc., won the Glen P. Woodard, Jr. Award for government affairs advocacy.
• Robert Ling Jr., the retired president and CEO, Unified Grocers, Inc., won the Herbert Hoover Award for humanitarian service.
• Irene Rosenfeld, chairman of Mondelez International, won the William H. Albers award for commitment to trade relations and consumer service.
And, also at the Trump National conference, the FMI Foundation announced the winners of its 2017 Gold Plate Awards, which “highlight the creative ways the food industry is championing the power of family meals.”
The winners, in various categories, include: Skogen’s Festival Foods, SpartanNash, Kroger, Associated Wholesale Grocers, Campbell Soup, and the American Heart Association.