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Building Loyalty in a Digital World: Challenges and Opportunities for Grocers

In just three years, digital grocery sales have experienced an astonishing 4x growth, reaching a staggering $128 billion in 2022. The COVID-19 pandemic played a significant role in this shift, as consumers sought safer alternatives to in-person shopping. This sparked a surge in demand for online grocery shopping, further propelled by technological advancements such as same-day delivery and curbside pickup.

According to a joint research by Incivis, 63% of shoppers turned to digital channels for their grocery needs in 2022, and many expecting to continue doing so in 2023.. Consumers are drawn to the convenience of shopping from anywhere, the ease of making purchases through digital devices, and the enhanced in-store experience through mobile device usage.

As digital shopping becomes the norm, grocers face a new set of challenges. Building and maintaining customer loyalty has become increasingly difficult, with 74% of grocers believing that digital shopping has made customers less loyal. This highlights the need for grocers to adapt and innovate to deliver on consumer expectations for convenience, control, speed, and personalization.

There is still work to be done. Only 17% of shoppers are satisfied with the digital aspects of loyalty programs, and 85% of grocers acknowledge that poor technology is a major obstacle in transforming their loyalty offerings.

To thrive in the digital age, grocers must embrace the shift to digital channels and invest in technologies that enhance the shopping experience. By doing so, they can create lasting relationships with customers and continue to grow in the rapidly evolving grocery market. Read the full report here



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