Incisiv Research: 74% of Grocers Believe Digital Shopping Has Made Shoppers Less Loyal

New report from Incisiv and FMI indicates that loyalty in the digital age is hard to win and easy to lose; explores investments in technology and infrastructure for loyalty transformation

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Recent research by Incisiv, conducted in collaboration with The Food Industry Association (FMI) and in partnership with Loyal Guru, shows that maintaining shopper loyalty in the digital grocery industry is a growing challenge. The report, “Shopper Loyalty in the Digital Age,” highlights the importance of offering a seamless omnichannel experience for shoppers to foster loyalty, including providing a well-designed digital platform, integrating with digital channels, and offering personalized experiences that meet the needs and expectations of individual shoppers.

Key take-aways from the report include:

• 74% of grocers believe that digital shopping has made shoppers less loyal.
• 88% believe that a poor third-party experience negatively impacts shopper loyalty.
• 76% of grocers believe that a poor web and mobile experience reduces shopper loyalty.

Despite these challenges, the report indicates that improving shopper loyalty has become a critical aspect for grocery retailers. According to the report, 71% of grocers say that improving shopper loyalty is a C-level priority in 2023. With the rise of digital grocery sales, it is more important than ever for grocers to prioritize technology and infrastructure investments to stay ahead of the competition and meet the evolving needs of their shoppers.

“Digital transformation has revolutionized the convenience of grocery shoppers, but it also poses a challenge to traditional loyalty. Grocers must recognize that poor digital experiences can lead to lost loyalty, and thus prioritize building a digital-focused loyalty program that enhances the omnichannel shopper journey,” said Gaurav Pant, chief insights officer of both Incisiv and Grocery Doppio.

Doug Baker, vice president of industry relations at FMI, said, “In order to maintain digital shoppers and foster loyalty, seamless and personalized omnichannel experiences are necessary to succeed in today’s highly competitive landscape. These insights offer practical investment considerations for business leaders.”

“As interest rates and inflation continue to rise in 2023, its clear shoppers are making more mindful decisions around their spending habits. As a result, grocers are reporting more engagement with loyalty programs that offer exclusive deals and discounts, private label growth, and a need to explore new monetization opportunities. In this regard, the hottest topics right now revolve around next-gen loyalty solutions, retail media, and building stronger customer relationships via technology,” said Borja Sanfeliu, CEO, Loyal Guru.

Register here for a webinar on March 29, 2023, that will discuss the findings of the study and dig deep into areas of grocery loyalty and the digital experience.

About Incisiv

Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact and profitability. Learn more at www.incisiv.com.

About FMI

FMI, The Food Industry Association, works with retailers, producers, and service providers from across the food industry to advance a safer, healthier, and more efficient consumer food supply chain. It represents an $800 billion industry with nearly 6 million employees and touches the lives of over 100 million households in the United States. Learn more at www.FMI.org

About Loyal Guru

Loyal Guru is a grocery-specific Customer Data Platform with unbeatable Loyalty and Personalization capabilities, focused on helping grocers harness the power of data to create the best customer experiences. Our platform, trusted by enterprise grocers across the globe, solves the unique challenges of developing retail business with next-gen loyalty initiatives, personalized offers at scale, advanced retail analytics and new opportunities for monetization.

Learn more at www.loyal.guru