Grocery chains are coming out of one-size-fits-all offers and employing omnichannel loyalty strategies to drive customer engagement

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Grocery chains have traditionally relied on offers and aggressive discounts to attract customers.  Most of the customers want to be treated as individuals and want customized offers as per their unique preferences, which is true for the grocery industry also.

Therefore several grocery chains are implementing omnichannel loyalty strategies to drive customer loyalty. For instance,

• In May 2022, Netherlands-based multinational grocery company Ahold Delhaize stated that the company used an omnichannel strategy to boost digital engagement and loyalty of the shoppers. Ahold Delhaize, whose brand ranges from Albert Heijn to Stop & Shop to FreshDirect, is increasingly applying the omnichannel formula to drive growth in business.

The grocery company creates a transparent omnichannel ecosystem through customer data and insights. This is helping the company to innovate, shape and adapt daily commercial initiatives at a local and personalized level, in-store and online, boosting growth and market share gain.

One of the key factors for consumer loyalty is price, and with rising inflation, consumers go for cheaper options. This is particularly true for smaller chains and independent players; however, Ahold Delhaize has the advantage of being a major multinational company with greater flexibility from the price point of view.

• Pacific Northwest grocery retailer Haggen introduced an omnichannel loyalty program that users can access through a mobile application. The retailer employed this strategy to attract loyal customers, a secure method of retaining and increasing sales.

When the customer engages with the retailer through mobile devices, they will be able to select from the entire range of offerings of the retailer, from in-store notifications and flash deals to personalized recommendations and many more.

Haggen is trying to create a personal connection with the customer through any platform consumers spend time on. Therefore, it is designing a loyalty program encompassing all forms of digital access.

In today’s world, grocery shoppers expect convenience, unique value, and emotionally connected experiences, which is only possible through the right omnichannel loyalty strategy. with the pandemic, customers’ preferences have changed, and therefore, an omnichannel loyalty program means that the customers will get the same ease, flexibility, width of choice and customer satisfaction – irrespective of the purchase channel.

An omnichannel loyalty strategy has enlarged the customer base for grocery chains or companies which is achieved through a two-pronged shift in the approach to customer engagement. Firstly, to provide a better level of ease and customer satisfaction, grocery retailers that were traditionally physical have moved to online channels. Secondly, with the development of web and mobile applications, it became easy to attract the digital-first audience, including millennials and Gen Z. Importantly, this demographic forms a large part of the consumer base across industries. 

Therefore rewards offerings also changed. From online shopping and e-commerce vouchers to OTT & music-streaming/podcast subscriptions, online F&B ordering, access to exclusive online communities and many more. Lastly, a digital loyalty program is not just a boon for the customer; it’s a great asset for the grocery business, owing to the data and insights.

To know more and gain a deeper understanding of the global loyalty programs market, click here.