4th December 2018

Cooking up new ways to connect with consumers outside of the grocery shop

 

In order to stay successful, supermarkets will need to find innovative ways to extend the grocery aisle to customers outside the shops

 

It used to be enough that your local grocer provided soothing tunes and solutions to the never-ending “what’s for dinner?” dilemma. But the needs and expectations of shoppers have become more sophisticated; their appetite for digital convenience has increased. And while there still is a desire amongst shoppers to be delighted in-store – hence the rise of destination grocery shops – companies must also cook up ways to reach consumers by being where they are, instead of making shoppers come to them.

 

While some may view this consumer shift as a challenge or hurdle to overcome, it actually represents an opportunity for shops to combine out-of-store partnerships and experiences with in-store services.

Curb appeal

 

 

 

If convenience is king (and it is, particularly when it comes to grocery shopping), it only makes sense that grocers are focusing on the click-and-collect model as a way to wow their customers. Shoppers place their orders online, from the comfort of their couches, and end their order by picking it up from a local store or designated pick-up location. It’s also no surprise that millennials – the canary in the coalmine when it comes to shaping emerging trends in all things digital – are one of click-and-collect’s1 top users, preferring it over home delivery.

 

With the United Kingdom forecast to become the second largest2 online grocery market worldwide after China by 2020, UK grocers will need to identify how to partner with brands in order to compete for buyers in a fast-growing and competitive landscape.

 

Succeeding at the click-and-collect model is all about being in the right place at the right time. Companies will have to understand who their customers are, what their needs are and where they shop if they’re to convert them into digital shoppers. This model is just one element of the digitalization of the food and beverage shopping experience, and one that merchants will want to explore if they are to stay in the game.

Grocers are making (radio) waves by producing their own podcasts

 

 

 

 

Podcasts have become ubiquitous, and for good reason: they are entertaining, compelling and portable. So, it’s only fitting that brands would start to produce their own. The transition makes sense, as the benefits of podcasting aren’t limited to the media and entertainment sectors. Content marketing is the new frontier of customer interaction, and launching a podcast is a great way for brands to communicate with consumers in a manner that builds loyalty and trust.

 

Major brands are entering the audio arena in an authentic, entertaining way. Trader Joe’s, the popular US-based grocery chain, is the perfect example, with their Inside Trader Joe’s podcast. If the idea of tuning into a branded podcast3 doesn’t sound like your jam, you may be surprised by what you find on this one. With episodes that delve into private tasting panels where decisions are made about new Trader Joe’s products, or wine tasting tours of Napa Valley, it’s an unexpected example of building brand loyalty outside of brick and mortar.

 

{Bonus points: U.K. grocery chain Morrisons recently announced that they would be introducing weekly quiet hours to help shoppers with autism feel more comfortable in the store – another shining example of grocers offering meaningful, personalized experiences for all of their shoppers}

 

Hellman’s mayo competes with online delivery services

 

 

As if creating the perfect sandwich condiment wasn’t enough, Hellman’s has found a way to extend the grocery aisle all the way to foodies’ front doors.

 

For customers looking to take the guesswork out of grocery shopping, Hellman’s new on-demand delivery startup will bring fresh ingredients to consumers at the click of a button. Partnering with logistics specialist Quiqup, to launch this recipe delivery service via a user-friendly app4, the popular condiment brand has launched its first foray into the direct-to-consumer space. The service allows consumers to choose their favourite recipes and get all the ingredients delivered to them directly within an hour.

 

Unlike most existing delivery services, this model isn’t tied to a specific retail outlet or partner, which makes for an interesting business strategy for brands trying to engage the much-sought-after and digitally-savvy millennial audience. The company works with a variety of retailers ranging from big name brands to independent businesses.

 

As digital technology becomes a permanent fixture in food and beverage shopping, grocers and brands will need to extend the grocery aisle all the way to the screens of our smartphones if they want to stay successful and relevant. Rather than struggle against outside-the-shop competitors, this is an opportunity for grocers to craft campaigns that complement their in-store offerings.

 

 

tenthavenue’s shopper experts know that shared technology and data can enable common understanding across retailers and brand owners within the rich complexity of retail media. Get in touch with us to learn more.

 

 

 

 

Sources:

1. Nielsen, one of click-and-collect’s top users, preferring it over home delivery.

2. Second largest: IGD; Profitero

3. Trader Joe podcast

4. Hellmann’s

 

Photo Credits:

Hero: istock/Frannyanne

Trader Joe: https://www.traderjoes.com

Hellmans: https://foundry.unilever.com/

Click and collect: istock/PeopleImages

SHOPPER