Omnichannel grocery shoppers shop more frequently and spend up to 20 percent more compared to in-store only shoppers, according to research from Symphony RetailAI. In addition, of customers who made an online purchase in Q1 of 2021, seven out of 10 returned and bought again within the same quarter. Data showed that if an online customer returned to the channel seven times in the first three months, they are three times more likely to become a long-term engaged customer.
“Because most grocery retailers operate with narrow margins, it’s important for them to find ways to gain more share of wallet while building customer loyalty,” said Chris Koziol, CEO, Symphony RetailAI, in a statement. “Providing customers with an online channel to shop how and when they want is a key differentiator, as we see with the increasing loyalty of omnichannel shoppers observed in our data. Therefore, the online grocery trend should be seen as a win-win omnichannel scenario, not a matter of ‘bricks versus clicks.’ Our recommendation to retailers based on these insights is to focus on the complete customer lifecycle and buying journey with an emphasis on driving repeat purchases to build long-term engagement.”
Symphony RetailAI found that only 15 percent of retailers’ in-store nonfood inventory was also purchased online. As consumers seek convenience in a post-pandemic world, grocers can broaden their online offerings, especially in nonfood categories. Promoting a “one-stop shop” experience from low-penetration in-store categories could avoid a missed opportunity for online sales, said the firm.
“A retailer with an omnichannel strategy puts the customer—not corporate processes—at the center of its strategy,” continued Koziol. “Our findings emphasize the importance of real-time consumer behavior insights and loyalty segmentation that power an engaging ecommerce channel, allowing them to more quickly react to consumer demands. To make omnichannel profitable, grocers need to understand their customers, provide them with the goods and services they want through any retail channel they desire, fulfill their purchases quickly and efficiently, and offer outstanding customer service. Now more than ever, it’s crucial for retailers to leverage AI and machine learning to quickly identify and execute customer-centric opportunities, with agility and precision that engage and encourage loyalty.”
Related: SFA Releases Annual State of the Specialty Food Industry Research; Organic Sales Reach $61.9 Billion.