DIGITAL EXPERIENCE IMPACTING CUSTOMER LOYALTY?

"When it comes to loyalty, 74% of grocers believe digital shopping has made shoppers less loyal, and 76% think that a poor web and mobile experience negatively impacts shopper loyalty." Supermarket Perimeter reports.

The value of technology in shopping and grocery shopping cannot be underestimated. It is more intuitive for upcoming generations to utilize technology for all commercial needs, including shopping from their supermarket. 

Supermarkets swiftly adopted new digital ways to connect and engage with their customers, but these innovations have not contributed to a growth in margins. According to FMI- The Food Industry Association profit margins and same-store sales growth have fallen back to pre-pandemic levels for the grocery industry.

So why digital experience and automations fail to achieve profitable loyalty goals? 

The answer - digitization generally commoditizes a tangible customer relationship. The metrics of providing a great shopping environment, welcoming team members, curated SKU offerings, and amazing merchandising is undermined by the quality of the digital experience. 

Also - the consumer is not only comparing one supermarket to another, but it is now measuring it against every other digital experience they have. Whether it's their social media, bank, Netflix, Amazon, TikTok, or Uber. Supermarkets unintentionally multiplied their competition a million times over! 

Just like self checkouts, supermarkets leaning heavily into digital experience may have caused the loss of their original value of a neighborhood grocery destination. Many are now trying to find that place again.

Innovations are necessary, technology is likely here to stay, but competitive advantage is about engaging with the human nature which is not always about faster speed. Technology is developed with a limited engineering mindset and considers client relationships as a transaction. Leaders should always remember that technology is a tool, not the strategy!

Many business leaders are seeing the commoditization of their craft and work by over digitizing and automation. Designing growth strategy around human nature and providing tangible loyalty opportunities are still possible. Board rooms just need a stronger human voice.

How are you boosting loyalty and profits for your supermarket in the digital experience culture?

Ehsaan Way aims to bring beneficent excellence in business, leadership, communities and economy through thoughtful brand growth strategies and QA programs.