Personalization and customer profiling: the new battleground in grocery retail

Currently, online grocery retail is booming business! The exponential growth of the online market share due to COVID19 will impact the entire FMCG category and in a broader sense e-commerce as a whole. 

 

Based on the high frequency of grocery purchases, grocers like no other retail category can build very adequate individual customer profiles. The leading grocers are the ones that are perfectly equipped to personalize their online environments, based on individual customer needs and behavior. They usually start with facilitating easy repeat purchase, but the more advanced ones extend that with targeted product suggestions, personalized promotions, individual reward schemes and so on.
 

The increasing level of personalization in the digital grocery environments creates new challenges for brands. It’s getting harder for them to control and monitor their shelf and promotional brand presence in the growing number of channels: online, in the app and emails, on the shopping list, in the hand held scanner, etc. Because of this lack of insight, it gets increasingly difficult for brands to add value in the relationship with grocery retailers.

We are interested in the grocery developments form a journey research perspective. Because of the high purchase frequency grocers will be the ones positioned to create an advanced level of personalization in the repeat purchases journey. Therefore, we developed, based on our journey analysis method, a concept to monitor personalization in the grocery space.

 

Essence of our method is the structural monitoring of the personalization and content targeting customers in key customer groups experience at the leading grocers throughout the year. Our concept monitors the repeat purchase mechanisms, targeted promotions, and individual customer reward schemes the leading grocers use on a structural base. Based on real purchases we monitor how personal each retailer gets with the customers within the target groups. These insights are interesting for all brands that want to understand retailers’ way of working, but also for all grocers that want to keep a clear view on other grocers’ personalization skills, mechanisms and smart innovations. 

 

We are currently discussing the concept with some major brands and are looking for more potential participants in a multi client monitor. Send us a message and we’re happy to explain the concept to you in more detail.

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Tel. +31 6 229 73 127

 

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