07 April, 2022

Latest research highlights value of winning shoppers’ long-term loyalty

Louise Taylor

The pandemic has enabled grocery retailers to connect with new customers. Many families have tried online food shopping for the first time. However, new data shows that it is retailers’ longer-term customers who are generating the most revenue.

The value of loyalty

The Brick Meets Click eGrocery Performance Benchmarking 2021 Wave has revealed the value of loyalty. According to the figures, established online grocery shoppers generate over 3.5 times the revenue that new customers do.

“This finding emphasises the need for grocery retailers to court long-term loyalty,” comments Northfork Co-founder Erik Wallin. “Gaining new customers is important, of course. But turning those new shoppers into long-term customers is where the real value lies.”

Winning long-term customers

Retailers have numerous options when it comes to winning customers’ loyalty. However, online grocery profit margins are notoriously low. Of the common online grocery models used worldwide in 2020, only the automated micro-fulfilment centre click-and-collect model was profitable without charging additional fees. That model demonstrated a margin of 2%. Others ranged from 0% to -15%.

As such, grocery retailers to maximise the value of every single shopper, and particularly of those generating the most revenue. One way they can do so is through the provision of recipe shopping.

Recipes to the rescue

Done well, recipe shopping removes a range of consumer pain points. It provides inspiration for mealtimes, reduces waste and makes it easy for shoppers with specific dietary needs. It can also significantly speed up the weekly shop. Northfork found that 54% of users take just five minutes to complete their menu planning when served with a dynamic menu in line with their saved dietary preferences. 33% of users take just three minutes to complete their menu.

By making the shopping experience both faster and more inspirational, retailers can do much to convince shoppers to stick with them over the longer-term.

 

About the author

Louise Taylor


Louise is Northfork’s editor and is passionate about all things food.
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