What can you do to keep customers coming back again and again? That’s the million-dollar question, right? According to a new study of 2,000 U.S. consumers by PYMNTS, one of the most important loyalty-boosting features grocery retailers often overlook is friendly and helpful employees.
Surprised? The top loyalty-boosting features in the PYMNTS report are low prices (77.2%), money-saving promotions and discounts (52.3%) and ensuring products are in-stock and available to buy (51.4%). After those bottom-line features, however, friendly and helpful staff (51.2%) is the most sought-after feature among shoppers. It’s ranked above things like online grocery ordering capability, grocery delivery, loyalty programs with attractive rewards, convenient locations, mobile apps and more convenient payment options.
The human element
There’s no doubt that your store’s online experience is critical. And the share of shoppers making at least some of their grocery purchases online for pickup or delivery is at a record high. The key is to make sure that you aren’t focusing only on your online grocery ordering and digital/app experiences. The majority of consumers will continue to shop in-store at least some of the time. And in-store, shoppers are nearly always going to come in contact with your store’s employees—even if it’s just at checkout or when groceries are handed over during pickup.
The importance of good customer service
The tight labor market and thin operating margins make hiring great employees more difficult, for sure. But it’s important to understand the impact of just one bad customer service experience in any of those in-store interactions. Even in instances in which a consumer loves a company or product, 59% will walk away after several bad experiences, according to PwC data. About one in five (17%) of U.S. consumers will do so after just one bad experience. The report underscores the critical importance of positive human interaction to a brand’s success.
Fewer opportunities to ‘wow’ shoppers
Data from McKinsey suggests that grocers have fewer opportunities each month to demonstrate superior in-store experiences. Before COVID-19, shoppers were making many more in-store trips each week/month. Today, consolidation and one-stop-shopping are the names of the game. The number of in-store grocery shopping trips consumers are making today is only about one-third of pre-pandemic levels and data suggests it’s unlikely to ever fully rebound.
We’re here to help
The PYMNTS study also found that nearly half of consumers who shop in-store at least part of the time also shop on average at three or more different grocery brands. For many of you, stiff competition is a fact of life in your market. Wherever your business is located, there’s no doubt that consumers have many choices of where to shop. Is your grocery business providing a compelling in-store experience to meet their needs and ensure their loyalty? At UNFI Professional Services, that’s our specialty. Let’s talk. E-mail us at [email protected].
