Give shoppers food discounts they prefer

Articles
May 11, 2015

Give shoppers food discounts they prefer

What shoppers want may not be what we are giving them!

Originally published in the free, weekly e-newsletter, Facts, Figures & the Future.

LoyaltyOne has just released its March 2015 nationwide survey of 1,000 U.S. consumers, which once again reinforces what shoppers want may not be what we are giving them! The topline from the firm's analysis is that grocery discounts are the new value driver - and fuel rewards alone are not winning shoppers’ loyalty.

 *   72% said they'd prefer that grocers offer them discounts on groceries instead of gas.

 *   In the Northeast, 81% said they'd opt for grocery discounts over gas savings. In the West, 65% favored grocery discounts.

 *   Among the biggest spenders, those who budget $700 a month on groceries, 83% expressed a preference for grocery discounts versus gas rewards ,and the majority (almost 75%) who spend $300-$500 per month said the same thing. Food over gas!

 *   Age-wise, older millennials are leading the charge for grocery discounts over gas rewards. Among shoppers 25-35 years old, 76% said they prefer grocery over gas rewards. That's five percentage points higher than any other age group in a range spanning from 18 years old to over-65.

LoyaltyOne Consulting Managing Partner, Dennis Armbruster says it best: "Too many grocers have become complacent with a one-offer-fits-all mentality about loyalty" - I would add that it is not limited to just loyalty but in many aspects of marketing, advertising and even store offerings in the supermarketing business.