Personalization in Grocery Retail

rocery shoppers expect more than just convenience; they want a tailored shopping experience that meets their individual preferences, dietary needs, and shopping habits. As competition in the grocery industry intensifies, retailers that embrace personalization will build stronger customer loyalty, increase sales, and create a more engaging shopping experience.

Here’s a look at how personalization is transforming grocery retail and the strategies retailers can use to provide more personalized shopping opportunities.

Modern shoppers want products and deals that align with their needs. Whether it’s a gluten-free shopper receiving relevant product suggestions or a loyal customer getting personalized discounts, tailoring the experience makes shopping easier and more enjoyable. Nearly 80% of grocery customers expect tailored digital shopping experiences and become frustrated when they don’t receive them, according to a report from Dynamic Yield by Mastercard.

As retailers face increasing competition, personalized promotions and product recommendations encourage shoppers to buy more, leading to higher basket sizes and increased revenue. When customers receive tailored recommendations and discounts, they are more likely to return to the same retailer. Eighty-nine percent of grocery executives believe that personalization is key to meeting their shoppers’ expectations, with 83% viewing personalization as a competitive driver, according to a report from Grocery Doppio. 

While much of personalization happens online, technology is enhancing in-store personalization. Digital kiosks, AI-powered shopping carts, and location-based promotions are making it easier for shoppers to navigate stores and find relevant deals. Grocers are increasing accessibility to personalized shopping, providing tailored promotions to in-store shoppers, whether they have a smartphone or not.

Stop & Shop is implementing an in-store kiosk called Savings Station across all of its more than 350 grocery stores. The Savings Station kiosks allow customers to activate all weekly circular digital coupons and personalized offers with no smartphone, internet access, or computer required. The new in-store feature ensures that all customers have the same access to savings and personalized offers based on their shopping history.

Grocery retailers can use loyalty programs to reward frequent shoppers with offers that appeal directly to their preferences. Grocers are using loyalty programs to collect valuable customer data and offer customized discounts, rewards, and exclusive deals. For instance, if a customer tends to buy organic produce or premium-quality meats, offering them loyalty points or exclusive discounts for those categories will make them feel valued and more likely to return.

Schnucks Markets has been finding new ways to help shoppers save through its loyalty program as the grocery retailer looks to strengthen customer loyalty. Schnuck Markets recently introduced more features to further personalize its rewards program for shoppers. Shoppers can go to “Personalized Savings” in the rewards app and find custom digital coupons, sales and points offers on items they’ve recently purchased. Schnucks refreshes the deals weekly to keep the offers relevant to shoppers’ favorite items. 

With the rise of online grocery shopping, retailers are enhancing their digital channels and utilizing AI-based solutions to provide personalized digital shopping. Online grocery platforms are using personalization to deliver relevant product recommendations, seasonal offers, and customized experiences, based on browsing history, past orders, and dietary preferences. 

Consumers expect real-time alternatives when a product is out of stock. Sixty-nine percent of consumers abandon their digital carts when they can’t find suitable replacements for unavailable items, according to Grocery Doppio. Incorporating an AI-based system that provides personalized substitutions can help retailers improve customer satisfaction and retention. Customizing the post-purchase experience can also elevate customer satisfaction. Offering flexible fulfillment and delivery options with convenient time-windows can ensure customers find the best option to meet their needs.

Personalization is making shopping experiences more relevant, efficient, and enjoyable. Whether it’s receiving tailored discounts, personalized product recommendations, or customized rewards, personalization is quickly becoming a vital strategy for grocery retailers to differentiate themselves and improve customer loyalty.

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