Groceries are able to use loyalty cards to collect tremendous volumes of data about the behavior of their most loyal customers. They also have regular face-to-face access to their customers and could survey or interview them on any visit, with the right systems. And yet none of them are really thinking creatively about building strong ongoing relationships. Very little is happening in the way of segmentation and custom programming. I am baffled about why they are so slow to create community.
I like what Whole Foods is doing with their app and loyalty program, and Safeway seems to be enjoying success with their Chevron discount (but that’s not about loyalty; it’s about saving money on a commodity).
So much potential is going underutilized.
As an expert on membership models and author of the Amazon Hot #1 Best Seller in multiple categories The Membership Economy, it is my business to help organizations use data and technology to build stronger engagement among their customers. I’d love to see grocers do the following:
1. onboard new customers in a way that builds loyalty from the very first experience
2. Track engagement and reach out when there is a lapse in activity (very obvious when behavior changes, as grocery purchases generally are consistent over time unless something major changes)
3. Create community, both in terms of interest (health, cooking, children, saving money) and geography, ideally both online and instore. Create more shopping excitement for regular shoppers. Small surprises and treats too.
