Winning in the era of data-driven food retail: Research
Data from IDC Retail Insights and Precima looks at the importance of digital and personalized offers
The fast-changing dynamics of the food retailing environment are challenging companies to keep pace with shoppers’ expectations and continuously elevate the experience. The latest shift involves usage of digital platforms and it has created an imperative for grocers to compete across multiple touchpoints.
New research conducted by IDC Retail Insights and commissioned by Precima, casts light on the current state of digital food retailing and what food retailers need to do now to drive success. The research shows that while Amazon.com continues to be a primary disruptive influence in fast moving consumer goods retailing, it struggles with retaining food shoppers.
Another opportunity for grocery retailers revealed is that shopping exclusively online is still relatively rare, so optimizing in-store experiences can help retain customers who might otherwise prefer digital options. A recent survey from Food Marketing Institute (FMI) confirms this opportunity, revealing that by 2022 consumers could be spending US$100 billion a year on online grocery.
“Retailers have finite resources that are shared among competing merchandising, operational and marketing priorities. They need to make smart decisions about where to invest in digital capabilities and how those capabilities and business decisions fit in with the rest of the organization,” said Brian Ross, CEO of Precima, a global retail strategy, analytics and cloud software company that provides data-driven solutions to retailers.
Additional key findings from the research include:
- 63% of shoppers say personalization is important.
- 35% of shoppers will spend 26% to 40% of their grocery budget online by 2020.
- A personalized customer experience strategy is a clear opportunity for brand differentiation.
- Consumers expect a seamless experience throughout in-store and online journeys.
- Personalized offers are vital for e-commerce; shopping/wish lists are an opportunity to enhance shopper experience and loyalty.
The data comes from a web-based survey of more than 4,000 consumers and 444 retailers in North America, France, Italy, Spain and United Kingdom between November and December 2018.
The full report is available here.