Here’s what you’re probably thinking: How can I possibly customize the shopping experience for each and every one of my shoppers? Is that even a reasonable ask? Think about the square footage, SKU count, manpower, and marketing I need to manage day to day … I can’t adjust that for each shopper who visits my store.
You’re right … sort of … let me explain.
Quick, hit the panic button, the Online Giant Amazon, your biggest competitor whether you acknowledged that yet or not, just took a formidable seat at the brick and mortar table.
Now, take a deep breath, exhale, it’s going to be OK, they’ve just confirmed that brick and mortar is here to stay.
Consolidation of the marketplace was inevitable and we’re seeing it all around us and all throughout the supply chain, with CPGs, wholesalers, technology providers, and of course retailers.
The game has changed, officially, and there’s no turning back.
So what does this mean for you, the independent retailer? How should you react and respond to this shock wave that was just sent through your system?
We’ve got some thoughts on this.
This article features an interview with Jake Fermanian, Vice President of Super King Markets, a 7 location independent grocer in the LA area.
What to do with all of this data!?
Well isn’t this a great problem to have: I now have a system in place to collect 100% of my transaction data in real time. What should I do with it? Who should have access to it? How do I leverage it to increase my bottom line? Where do I begin?
Data is only as good as what you’re able to do with it. You can collect all of the T-logs you want. You can run as many reports in excel as you want. But let me ask you something; what are you going to do with it?
The loyalty myth: Loyalty member = Loyal customer
Let’s call a spade a spade; Can you really install a loyalty program? The loyalty myth in the grocery industry is that once a customer signs up for a store loyalty card they are now a loyal customer. In reality, we’d argue, the loyalty card is just that, a piece of plastic in their wallet, no more indicative of loyalty than the other 20 it now sits beside.
With increasing competition from big-box retailers, independent grocers need to find new ways to increase shopper retention and reduce churn. In fact, grocers who increase their shopper retention by as little as 5% can increase profits by up to 95%. The key to retention is personalization: delivering the right offer, to the right shopper, at the right time.
I can vividly remember our experience at our first NGA Show just one year ago. We were the new kids on the block. Walking the halls of The Mirage in Las Vegas in colorful T-shirts, just happy to be there, but knowing nobody, and not really knowing what to expect.
The days were long that first year. Only one pre-set meeting, and very unclear expectations for our first time introducing AppCard to the world of independent grocers.
One thing was for sure; we were in the right place. Continue reading