• Louis Van Zeller •
The pandemic has shifted shoppers online, supermarkets are increasingly competing on the strength of their website. With customer loyalty being tested and digital offerings being so easily compared online, it is essential to have a highly competitive digital presence. Omnichannel supermarkets are being forced to compete online with digital pure players and their advanced digital and delivery capabilities. So, what are some of the innovations that can be employed to strengthen an online store?
Supermarkets must have comprehensive delivery capabilities. Today’s consumer demands speed and convenience. Consumers want a range of options, whether it’s same day delivery, click & collect, locker pick-up, customisable time slots or priced-based delivery. Increased demand for supermarket deliveries means that supermarkets need to optimize delivery routes and expand infrastructure. Last month Tesco, Sainsbury’s, ASDA & Morrisons announced they were taking more space from the shop floor to convert to dark stores. Dark stores, warehouses that serve online shoppers, are a great way to meet online demand and allow for last mile delivery and pick-up in prime locations.
Data science will enhance any digital offering. “High-performing data-driven operations help deliver great CX” according to Orange Business Services. Data science can offer a valuable insight into the customer, it allows for visibility into shopping behaviours, patterns and preferences. The improvements possible with implementation and proper use of data science are unfolding all the time. Fundamentally data science helps supermarkets to predict customer demand which improves stock and delivery efficiency. Beyond this, it can have a huge impact on personalising customer experience. U.S. consultancy Publicis Sapient explains, “You can begin to proactively anticipate what goes on the shopping list and begin to simplify that experience. You can begin to recommend subscribe-and-save options for items bought frequently, or start recommending recipes”. These solutions will help cultivate a streamline customer experience, creating a path of least resistance for the user.
Paid loyalty programmes offer premium benefits to their subscribers, which enable retailers to compete outside of pricing. When competing against retailers selling comparable goods, these benefits can give the edge to a supermarket’s digital offering. Once a customer becomes a subscriber, having paid for a program they are 60% more likely to spend more on that brand, according to McKinsey. Paid loyalty schemes create an economic loyalty loop, which would be unfavourable to break. To retain customers, a paid loyalty programme must offer experiential benefits, aside from transactional perks, which foster a deeper connection. Digital content services and apps, like Cafeyn’s magazine and newspaper offering, can be utilised as a benefit that complements the retailers existing catalogue without taking up valuable shelf-space. In this case by providing the user with thousands of newspapers and magazines, updated daily. For housebound customers and those who do their shopping online, having a service accessible across any device can be incredibly convenient.
Product Presentation
Supermarkets should consider enhancing product presentation on their platform. The consumer wants information and innovation to offset the fact they can’t hold the product in their hands. User reviews are a great way to combat this downside. According to Orange Business Services, 84% of consumers trust customer reviews. Comprehensive product description, 360 degree views, product recipes and video are great ways to advise the customer and stand out from competitors selling similar products. Consumers are better informed now more than ever, and they’re more prepared to spend with retailers that show authenticity and transparency across the value chain. Customer reviews and exhaustive information will contribute towards transparency.
While technology and data play a large role, the customer needs to be at the centre. The danger of e-commerce is the loss of customer care and the human touch. Chatbots and AI solutions can improve customer experience but they only go so far. Supermarkets need to think about humanising their digital offering and customer services. Call centres and social media can provide this. Customers have found their voice, social media has become the main platform with which to communicate with retailers. 90% of consumers reach out to brands via social media according to Orange. So it’s imperative to maintain social media interactions. Rewards that foster an emotional connection between the consumer and the brand are necessary for creating a personalised customer experience that will bring shoppers back to the online store.
New products and services keep your retail offering fresh. E-commerce has the advantage of being able to stock and source items without having to take up self space. With this extra space, supermarkets can diversify with home and lifestyle products, relevant to the housebound consumer. Online retailers can conveniently shift toward selling digital products, such as digital media with Cafeyn. Barclays reports a 32.3% year-on-year growth in digital content subscriptions. Supermarkets that offer digital content subscriptions would be responding to the demands of today’s consumer.
For complete omnichannel coverage supermarkets should be leveraging a high-performing application. Research from Criteo illustrates that 88% of time spent on mobile devices is spent in apps, and apps have three times the conversion of the mobile web. The app is a main entry point for any e-commerce site. Successful apps can incorporate more responsive exploration, drive more frequent visits and larger basket sizes. With push notifications apps provide an opportunity for further communication and retention at a time of failing customer loyalty.
Partnerships can bridge the gap between supermarkets and post pandemic consumer needs. This is especially true of delivery and logistics. As supermarkets explore new ways to optimize delivery for speed and efficiency, they may consider third-party carriers or develop a partnership with delivery and storage companies. Marks & Spencer began their partnership with online supermarket Ocado in September. The Retail Gazette noted this was M&S’s “first significant step in offering home delivery for its food and grocery business while also having access to Ocado’s technology and delivery logistics”. Partnerships may also be necessary in pivoting toward selling home and lifestyle goods, allowing for exclusive products at competitive prices.
If you are a looking to reinforce your digital offering and want to know more on what Cafeyn can offer, you can contact us here.
OUR SOURCES
[1] Orange Business Services. Retail in a post-COVID-19 world: How digital can create and shape new customer experiences and power recovery.
[2] Computer Weekly. Covid-19: How retailers are using technology to respond to changing shopping habits.
[3] Forbes. The Digital Transformation of Retail Grocery.
[4] Publicis Sapient. The Future of Grocery: Bringing Digital Experiences to the Store.
[5] Barclays. UK Consumer Spending Report.