The Challenges and Opportunities for Online Grocery Shopping

The ecommerce laggards

Recent RichRelevance research has highlighted grocery lags behind the rest of retail when it comes to online shopping. Just over half of the UK population shop online for groceries (53%) and in the US the opposite is true, with over half (55%) choosing not to buy their groceries online.

There are valid reasons why grocery is lagging behind the rest of retail when it comes to online shopping.

For retailers, the infrastructure and resources required to deliver goods means it’s complex and expensive to set up. Although business models such as click and collect are easier to implement than home deliveries, retailers need to offer shoppers the choice otherwise they will fall at the first hurdle.

The RichRelevance research finds shoppers are torn between the time savings and convenience online shopping offers, verses the ability to pick out their own produce. (We’ve all done it, reached to the back of the shelf to pick the item with the longest use by date!).

It’s no surprise therefore, that recent Forrester research¹ shows the take up of online shopping for groceries is higher for packaged goods rather than fresh produce. What’s more the trend is more common in urban rather than rural areas.

In spite of this, the rewards are potentially high for grocery retailers who get the online shopping experience right; not only is grocery shopping a high frequency purchase it’s also a high percentage of household spend.

Winning the food war with personalization

The research by RichRelevance reveals shoppers would buy more online if they got a more personalized and relevant experience. Top features shoppers would like to see included presenting frequently bought items, recommending relevant alternatives, and basing recommendations on dietary requirements and known preferences.

Additionally, the research discovers grocery retailers could go even further and inspire customers through recipe ideas which compliment items in their basket. This not only improves the experience for shoppers but can lead to higher basket values for the retailer.

It is clear that despite the challenges, there remains opportunities for those grocery retailers willing to invest in the right technology to get the online shopping experience right.

Find out more about the RichRelevance research by viewing the key findings via our infographics: US grocery infographic and European grocery infographic.

Building towards new business models

The grocery sector is now also seeing a shift with new players such as emerging with a different ecosystem and business model.  We will explore the implications for traditional grocery retailers in our next blog post.



A Recipe for Success: Experience Personalisation

Combine Europe’s leading retailers and brands with the best personalisation experts in the industry, add in a splash of brilliance with the legendary Experience Economy author, and dust with a sprinkling of snow. Bake for 24 hours in a first-class quintessentially English Hotel. The resulting banquet manifested in the RichRelevance Experience Personalisation Summit.

Bring the Best of B2C Personalization to B2B Buyers: 5 Ecommerce Best Practices

Forrester estimates that B2B eCommerce will reach $1.2 trillion and account for 13.1% of all B2B sales in the US by 2021.  For B2B companies, this means the right ecommerce strategy can drive their growth and give them the competitive advantage they need, but there are numerous variables in play to get it “right”.  Personalization as a component to this strategy is in itself a broad mandate that has multiple layers and approaches.

Experience Personalization (XP) News – Friday Roundup – Feb 23

Happy Friday, awesome XP Adventurers!

Here are 5 articles that caught our attention last week that we rounded up for you… enjoy!

Experience Personalization (XP) News – Friday Roundup

Happy Friday, intrepid XP Adventurers!

Here are 5 articles that caught our attention last week that we rounded up for you… enjoy!

How RichRelevance uses Spark

As the global leader in omnichannel personalization, we at RichRelevance take pride in providing the most relevant and innovative customer experience to end users. Every day we deliver over half a billion placement views to more than 50 million unique online shoppers worldwide. A shopper journey in our customers site is recorded as a sequence of Views, Clicks and Purchases which we call a Visit. All this user generated data is recorded in our front-end data centers and saved as Avro logs in HDFS on our backend Hadoop cluster. This valuable user data is used across teams to power our products and services.

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