The prevailing belief among grocers is that, in the face of skyrocketing prices, they would be best served to find ways to provide their customers digital discounts, be those in the form of coupons for all shoppers or rewards for loyalty program members.
By the Numbers
Research from PYMNTS’ study Big Retail’s Innovation Mandate: Convenience And Personalization, created in collaboration with ACI Worldwide, draws from a survey of 300 major retailers in the U.S. or the U.K. The study found that 74% of grocers included think that consumers would be very or extremely likely to switch merchants if digital coupons and rewards were not provided.
Get the study: Big Retail’s Innovation Mandate: Convenience And Personalization
The Data in Action
Netherlands-based multinational grocery retailer Ahold Delhaize, noting just these concerns, has been investing in its loyalty offerings. In a presentation to analysts Wednesday (Nov. 9) accompanying its third-quarter 2022 earnings release, the grocery giant said that it has been focusing on “delivering personalized value through our digital omnichannel loyalty programs.”
These efforts appear to be paying off. Per the presentation, the grocer’s U.S. arm, ADUSA, has seen its loyalty programs bring in more than $1.5 billion in incremental sales so far this year.
This is because its U.S. customers saw more than a 50% increase in personalized offers than the previous quarter, totaling some 8 billion in different targeted ads and promos. The grocer touted roughly 80% loyalty sales penetration in the U.S. while noting its loyalty sales reached 60% customer penetration in its home region, Benelux.
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