How Grocers Can Lock In Loyalty By Exceeding Expectations
The expectations of shoppers have jumped recently. Exposed to the ease of e-commerce, shoppers are demanding more from retailers in return for loyalty.
Loyalty, as we know, is huge.
Grocery retailers have started to offer mobile self-scanning and loyalty apps to make the in-store experience smoother and more engaging.
Many are relying on Scandit for this capability. Using our barcode scanning engine as part of their app.
But often, apps aren’t used as much as the grocer would like and they lack the edge that truely personalizes the experience and makes the grocer stand out.
Here’s where we can help.
Let us ‘augment’ things for you.
Using loyalty apps powered by smart data capture, create an experience that lets shoppers digitally interact with items. Accessing product information and personalized rewards by scanning barcodes on items and shelves.
Here’s how grocers can exceed expectations and lock in loyalty.
1. A new dimension of customer experience
Augmented reality (AR) in the buyer journey really took off in e-commerce a few years ago. High profile retailers have been using it to help visualize where furniture items will go, how new trainers will look, and what make-up suits best.
The evidence suggests this is having a big impact on conversion rates.
Interacting with products that have an AR experience leads to a 94% higher conversion rate.
Source: Snap Inc and Deloitte
But in physical stores and grocery stores in particular, the uptake has been slower. Consensus being that finding use cases and the right way to execute them is harder.
Until now. Smart data capture is enabling a new wave of in-store AR. From personalized coupons to wine recommendations. We’ll explore both of these in later sections.
If you are already using mobile self-scanning as part of your loyalty app then an extra integration can help you go a step further.
Providing product information from a single barcode scan is a good place to start. But using AR can bring a new dimension to your customer experience.
Getting different tools and technologies to work together, especially legacy and new, takes time and a dedicated project team.
But we make it as easy as it can be. Our documentation is full of clear guidance, sample code and FAQs that give our customers full confidence in the solution and how to implement it.
Our experienced Enterprise-Level Success Team will be on hand to walk you through it too. They partner with you all the way from evaluation to day-to-day operations – with trials, solution design, integration and customer success support included.
If you aren’t a Scandit customer yet, then let’s start off with getting you on smart data capture first. Your self-scanning app will have the best performance available and building in game-changing AR will be easier.
It’s a win-win for your business and your customers.
2. Listen and learn from customers
Piloting the capability is definitely a sensible best practice when it comes to releasing anything new that is customer facing.
Test it out first. Take a stepwise approach in certain regions and capture feedback from customers.
Think about how you are going to scale this across the country or multiple regions once you’ve got a handle on what your offering is.
We can assist with what features and functions to provide to shoppers and some best practices. Ultimately, make sure the capabilities and user experience are going to benefit shoppers when they arrive in store.
This can then be validated at the pilot stage and improvements made before rolling out further.
Read our case studies to see how some of our customers have implemented smart data capture and augmented reality.
Another bonus when adding AR capabilities is the extra data points that you will be collecting. You’ll have much more 1st party data to help you understand customers better.
Things like which offers they are redeeming and what information is impacting their experience.
Conducting A/B tests of what works and what doesn’t can help refine your offering. Creating a culture of learning that will help you innovate and stay ahead of customer expectations.
3. Personalization pays
Shoppers are using your app and you are getting the data. Time to get personal.
Offering coupons and rewards that are unique to the customer’s spending habits is a proven way to drive loyalty.
2 for 1 on their favorite cereal this week? Or $2 off a new coffee you think they will like?
of consumers are more likely to make repeat purchases from companies that personalize.
Source: McKinsey & Company
Not only will you keep shoppers coming back to the store, but you will reap the bottom line benefits of high conversion rates of offers and improved customer satisfaction.
Nisa, a grocery retailer in the UK achieved an 80% voucher conversion rate and over 80% repeat redemptions after integrating smart data capture and AR into their Scan and Save app.
Using smart data capture, you can provide shoppers with a simple AR overlay that reveals the offer when scanning items or shelves.
Key for grocers is being able to scale the solution. Having the data available from loyalty apps enables personalization at scale. Trust and value are important for shoppers here.
At a time when consumers are more aware of privacy and the implications of sharing their data, being open about the 1st party data you are collecting can build trust. Purchase behavior, app interactions, and profile information can all be leveraged to personalize the experience.
Once you’ve demonstrated that you are, for example, using purchase history to provide offers on their favorite coffee, shoppers will see the value in sharing data.
Leading to greater consumer acceptance and loyalty to your business.
4. Informed purchase decisions
Information is in demand.
- How healthy is this item?
- What intolerances is this food suitable for?
- Are items sustainable?
- What have other shoppers said about this wine?
All regular grocery questions that the right information can answer.
With intolerances on the rise and a clear drive towards premium healthy and sustainable choices, accessible nutritional and sustainability information can be a differentiator for grocers.
It’s easy to provide in the e-commerce channel but less so in stores.
That’s where our MatrixScan AR capability can give shoppers instant insight into the products there are considering.
A whole shelf can be scanned at once and an AR overlay reveals the different information when in health mode or allergen mode. Shoppers can be informed about their purchases and have their questions answered.
You don’t have to stop there either. As long as a data point is available for an item, then it is possible to show it on the shopper’s smartphone.
Consider also pairing recommendations or recipes that may assist with cross-sells and upsells. Adding another engagement point that makes shoppers feel provided for and looked after.
Exceeding expectations and securing another tick in the box in the loyalty stakes.
5. Clarity of communication
Public acceptance and uptake of new scanning apps is going to be difficult unless you really push it.
If mobile self-scanning is already in play then you’ve got a good base to work from.
If not, the principles will be the same.
Make sure shoppers have a clear understanding of ‘what’s in it for me?’
Nail your message and promote via signage, emails, social media, website and even in-app notifications if you have one.
And don’t forget about store associates. They should be advocates for the new app and help customers understand the value of it to encourage downloads.
Top offers and savings that are only available via the app will also assist with that initial take-up.
Many of our customers ‘gamified’ the experience for their shoppers to assist with adoption. Czech retailer Globus saw the app adoption rate grow more than 570% in just a few months after using gamification.
Having items to ‘hunt’ or winning a prize by being the 10,000th person to download the app are all things that connect customers to your brand and spark loyalty.
The more people use apps, the more data you’ll get, and the more you will be able to optimize it for shoppers to use.
Creating sticky experiences that keep shoppers coming back for more.
6. Summary - value is the key
Loyalty isn’t just about in-store experiences. A multitude of factors play into where shoppers go the most. Price and proximity being two of the most important.
But with inflation causing all grocers to offer more value for money and our towns and cities populated with greater choice, exceeding expectations can be the difference.
A guaranteed way to do that is personalization. AR can deliver everything a shopper needs just by holding their smartphone up to a shelf.
Provide a good experience that helps them make informed purchase decisions and get value for money and more often than not shoppers will be back through your doors.