?? ?? Key Trends in Grocery Loyalty ?? ??

Miguel Gil is?a Marketing and CX enthusiast with over 15 years of experience in the grocery sector and being one of the masterminds behind one of Europe’s most successful loyalty programs for a leading grocery chain.?

Here are his tips and insights: ??

Miguel, why a Grocer should invest on a Loyalty Program?

A well deployed loyalty program can provide valuable data to enhance efficiency by improving offer personalization compared to massive campaigns. This approach helps manage spending and better ROI control for each action. Additionally, it can integrate various business units (such as financial services, oil suppliers, and ticketing) to increase customer engagement with the brand and provide a deeper understanding and scoring of the customer.

"Having a loyalty program allows grocers to differentiate from competitors, gather valuable customer data to increase the efficiency of their campaigns, and create omnichannel experiences that boost purchase frequency, volumes, and revenue in a sector known for tight margins."

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When is a good moment to launch a Loyalty Program for a Grocer?

In today's economic climate, where inflation has further tightened grocer margins, the ability to improve the effectiveness of personalized promotions has become crucial for boosting profits.

"Anytime is a good time to implement a loyalty program in a grocery store, as evidenced by our experiences & conversations with hundreds of grocers worldwide. Such programs consistently bring benefits by increasing the efficiency of campaigns and enhancing customer insights."

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How long does it take to launch a Loyalty Program and have a good ROI?

Setting up a loyalty program for grocers typically takes about three months. However, it takes approximately one year for the program to mature to a level where it can be effectively communicated to customers, establish a solid base of engaged customers, and optimize the design of promotions.

"A well-deployed loyalty program can engage up to 70% of customers, providing an incredible source of data to optimize campaigns and enhance the overall customer experience."?

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What about new generations? Are they gonna be engaged by a Loyalty Program??

Younger generations are often engaged by rewards such as travel points, music festival tickets, and subscriptions to services like Netflix or Spotify. In contrast, senior generations may be more interested in benefits related to fresh food that support their health or perks like free home shipping when necessary.

"Loyalty programs can be appealing to all generations. It's not a matter of age; the key lies in understanding what is relevant for each segment along the customer lifecycle and allowing grocers to monitor this evolution."

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What are the emerging Trends in Grocer Loyalty Programs?

Beyond hyper-personalization and omnichannel experience, we observe three new trends in grocer loyalty programs:

?? Gamification and Promotions Linked to Meaningful Experiences.?

Grocers are increasingly using gamification to engage customers by offering promotions tied to meaningful experiences for different segments. Examples include:

• Free entrance to theme parks or zoos for families that spend beyond a certain amount.
• Invitations to book signing events for book lovers.
• Free credit on Spotify for young customers who make a specific number of purchases within a given period.

?? Cash-Back Credit Contributing to ESG Causes.

Instead of merely offering discounts, grocers are providing cash-back credits that can be redeemed by contributing to Environmental, Social, and Governance (ESG) causes aligned with the brand. This not only incentivizes purchases but also strengthens the brand's commitment to social responsibility and appeals to socially-conscious consumers.

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?? Retail Media as a New Way of Monetization.

Retail media represents a new revenue stream for grocers. By leveraging digital channels, ??grocers can extend their advertising reach beyond the physical supermarket. This trend includes:

• Personalized offers sent directly to customers' mobile phones.
• Benefits for brands that can efficiently recommend products to their target audiences.
• Enhanced customer experience with relevant product recommendations.
• New revenue sources for grocers through targeted advertising.

These trends highlight the evolving landscape of loyalty programs, where personalization, social responsibility, and innovative monetization strategies as retail media play a crucial role in driving customer engagement and profitability.

If you're considering launching or enhancing your loyalty program, don't hesitate to:

?? contact us

?? or book a demo

Thanks for reading!

Let's Rock! ??