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Half of all grocers are upping their shopper data game: report

Research says personalization efforts are paying off

Alarice Rajagopal, Contributing writer

June 13, 2023

2 Min Read
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The survey, which drew from 300 major U.S. and U.K. retailers, found that 50% of grocers are currently innovating their ability to track customer purchase history across all channels.Getty Images

TOP TAKEAWAYS

  • 50% of grocers are currently innovating their ability to track customer purchase history across all channels

  • 37% are stepping up their data analytics capabilities

  • 32% are investing in improving their loyalty programs

New research finds that grocers are investing heavily in providing more personalized digital experiences through consumer data, according to news and analysis company PYMNTS. 

The survey, which drew from 300 major U.S. and U.K. retailers, found that 50% of grocers are currently innovating their ability to track customer purchase history across all channels. In addition, 37% are stepping up their data analytics capabilities, and 32% are investing in improving their loyalty programs.

While Amazon and Walmart together capture a large portion of the ecommerce market that’s worth more than $1 trillion per year, many other grocery retailers are stepping up their personalization efforts to reap the benefits of digital first-party data.  

For example, Instacart officially launched its AI-powered search tool “Ask Instacart,” which leverages the language understanding capabilities of OpenAI’s ChatGPT in conjunction with Instacart’s own AI models. The company also enhanced its search with personalized question prompts in order to anticipate customer preferences and remind them of their needs based on their shopping history.

Related:Walmart teams with Netflix for online shopping hub

Shipt, the Target-owned retail technology company, doubled down on its enhanced membership dashboard with a series of exclusive, value-added perks for members last month.

And, Save Mart Companies launched its new retail media network which is an extension of the company’s already-in-play iOS and Android mobile apps. The launch provides advertisers and brands with the ability to effectively target more Save Mart, Lucky, and FoodMaxx consumers, with the end goal being “to provide shoppers with the value, personalization, and omnichannel experience they are looking for — ultimately driving more sales and bigger baskets.”

While grocery retailers continue to make investments in personalization, only 12% of grocery transactions are occurring online, with consumers preferring to shop in stores. 

Still, category giants like Kroger are investing heavily in personalization capabilities as addressed by its CIO and SVP Yael Cosset during a recent event where the efforts seem to be paying off: “Investment in data and innovation during the last two decades — focusing on the customer experience — created immense value, saving customers $1.4 billion just last year,” Cosset said. “Kroger pioneered the personalization approach because we wanted to understand how customers engaged with our offers to make them better and more relevant.”

Related:Millennials see savings, convenience in online shopping: survey

About the Author

Alarice Rajagopal

Contributing writer, Supermarket News

Alarice Rajagopal is a contributing writer for Supermarket News, which delivers the ultimate in competitive business intelligence, news and information for executives in the food retail and grocery industry. She has over 10 years of writing experience covering the consumer goods business and technology industry. Alarice has also written for a variety of other industries and content areas over her editorial career including retail, cyber security, hospitality and marketing/product marketing for the B2B space.

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