Initially due to logistical reasons, as well as consumer proximity to physical stores, groceries were not a natural fit for digital buying. However, many consumers find the convenience of online ordering, payment and delivery options, preferable to shopping in physical stores.
Segmentation is a fairly age-old approach to personalize marketing campaigns. Segmentation basically is grouping individuals into ‘buckets, called segments based on pre-determined interests, geography and/or demographics. For example, in grocery, a segment might be defined as “People over 50 who typically spend £50 a week in-store” or “Families with children under 5,” etc. Segmentation used to help marketers cope with the abundance of data and plethora of consumers, and allow them to “personalize” experiences at scale. The one problem with this is segmentation is never a truly personal experience.
It was just two years ago in 2016, that headlines everywhere were talking about the demise of retail, but this year at the annual National Retail Federation 2019: Retail Big Show, which opened on Sunday, January 13th, NRF Chairman Christopher Baldwin, chairman, president and CEO of BJ’s Wholesale Club stating what we all know to be the more accurate truth, “retail never went away”, and that today the “industry is more healthy, vibrant, innovative and exciting than ever.”
Digital grocery shopping has completely changed the grocery game. For better or for worse, local and long established grocers are now competing with, a new category of competitors who are born out of the ‘direct to customer’ era. These new age grocery and niche grocery players ship everything from fresh dairy and organic meats to their own white label paper goods. With so much choice and category confusion it’s increasingly important for grocery retailers to invest in shopper loyalty and keep shoppers coming back and building their baskets.
I over prepare for everything in life. I need to know in advance that things will be perfect and I’ll have everything I need for whatever task is at hand. Rewind to 3 weeks ago when my husband suggested that we host Thanksgiving in our small NYC apartment. I have never hosted a Thanksgiving before, so even though the guest list was small, I immediately began to prepare.
More than 40 percent of Americans plan to shop online for some or all of the groceries needed for their Thanksgiving or holiday meal, more than twice as many as in 2017, according to RichRelevance’s Digital Grocery Survey: 2018 Holiday Edition. Amazon is the top online grocery destination for shoppers, followed by big-box retailers such as Walmart and Target, and traditional supermarkets like Safeway and Kroger. The top Thanksgiving items consumers plan to purchase online are bundled ingredients for side dishes, canned items like cranberry sauce, and beverages including alcohol. Turkey and frozen/pre-made desserts are the least likely to be purchased online.
Grocers are implementing a variety of promotions to boost online shopping baskets and rope in new customers, whether it is discounts, personalized offers, comprehensive customer service or some combination of all of these. Fulfillment methods also vary widely. Many grocers have teamed up with Instacart or Shipt, while others have established their own programs or teamed up with smaller e-commerce vendors.
Experimentation in a burgeoning field like e-commerce is natural, but as more consumers do more shopping online, grocers need to have a secure strategy in place while also looking to the future.
More than 4 in 10 Americans (44%) plan to shop online for some or all of the groceries they need for their Thanksgiving or holiday meal this year. This is more than twice as many people who shopped online for Thanksgiving groceries in 2017, according to the Digital Grocery Survey: 2018 Holiday Edition from RichRelevance.
Amazon dominates as the top online grocery destination for shoppers (57%), followed by big-box retailers such as Walmart and Target (48%). Traditional supermarkets like Safeway and Kroger will attract a significant – but quite smaller – number of online shoppers (30%) this holiday.