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Precima is out with new loyalty-focused research suggesting that effective loyalty-oriented marketing continues to be a major factor for retailers seeking to “to compete and thrive in today’s hyper-competitive market,” though even at this juncture, it is an approach used too little.

“The research found a lack of loyalty among many grocery shoppers, with 75% of shoppers saying they only allocate about half of their household grocery expenditures to a single store,” Precima said in its report, delivered this week at the National Retail Federation show in New York City. “This poses a direct challenge to grocery retailers, which strive to build a large and devoted customer base.”

“Our research shows that maintaining a loyal shopper base is still the most effective way for grocery retailers to compete and grow sustainably,” says Steve Hasen, AVP at Precima. “Loyalty must be earned, consistently and repeatedly. It is gained and lost across a myriad of touch points that shoppers have with retailers, so food retailers who consider shopper loyalty in every phase of the customer journey are on the best path to consolidate spending to their stores and thrive in the new grocery landscape.”
KC's View:
In identifying ways to create shopper loyalty, the Precima study points to relevant choice, competitive pricing, strong customer service, and both speed and agility in reacting and changing in response to competition. I would argue that these things all are important, and that it is equally important - maybe more so - for retailers to be focused in a granular way on what the data tells them, and using it to communicate effectively with shoppers, demonstrating that they are loyal to them.

Think of it this way. Amazon, in so many ways, is one of the best and most effective loyalty marketing programs ever devised. It knows everything that there is to be known about its customers and sales. To really compete, retailers must figure out how to approximate this, or at least counter it.

There’s an enormous gap between actionable information and actually acting on it.