Despite investing time and resources, many grocers struggle to show significant annual growth time and time again. Why is it so difficult to get that number higher?

The overarching reason grocers struggle to achieve greater gains is that the industry playbook — in-store experience upgrades, digital programs, e-commerce partnerships, and footprint expansion — isn’t effective enough for uncommitted customers. That doesn’t mean these investments are wrong, but they’re not driving foot traffic from this critical and growing group.

There is an additional growth lever that connects with these shoppers, wins profitable foot traffic, and requires no additional capital or operating expenditures: Upside’s digital marketplace.

Uncommitted customers: The key to growth in grocery

Upside survey data shows that uncommitted customers represent a majority in today’s retail landscape. Understanding them better — and reaching them effectively — is key to unlocking more growth. So, who are they?

Uncommitted customers put the value they receive from a given transaction ahead of loyalty to any particular retailer or brand. You might refer to them as secondary or tertiary customers. No matter what you call them, these are cross-shoppers that prioritize themselves and provide for their families by maximizing the impact of every dollar. 

Why is it so hard to win these customers? Their friction — the thing blocking them from choosing your store — is greater than the value you’re offering them. A store’s location can serve as friction for some customers who live farther away; for others, high prices represent friction. 

To win more trips and bigger baskets from these customers, you have to find a way to overcome that friction and change their behavior. They’re hard to move, but doing so represents a big area of opportunity.

There are many ways to influence uncommitted customers, but not all of them lead to profit or sustainable growth, and that distinction is very important. BOGO deals might feel like quick wins because you can see spikes in sales, but each one is a gamble. Are you attracting new customers, or just paying loyal ones to do what they would’ve done anyway? Without precision, you’re trading growth for margin erosion. Footprint expansion requires massive capital, and with big-box retailers crowding trade areas, it’s taking longer for that investment to pay off. 

How Upside’s marketplace helps grocers grow

Too often, grocers’ deals and promotions aren't working smart enough. Winning secondary and tertiary customers requires a new approach, and Upside exists to help grocers do so profitably. 

Our digital marketplace reaches 35 million American consumers through our app and network of partner apps. In the Upside marketplace, we connect retailers with nearby customers using personalized promotions unique to each user. Our targeted promotions cut through the noise, overcome customer friction, and deliver the value that turns hard-to-reach customers into loyal spenders.

Upside resonates with uncommitted customers because we reach them where they are — on their phones. When we bring more new and infrequent shoppers to your business, Upside generates extra revenue without the need for any additional capital expenditures. It’s like the benefit of opening another location without ever actually having to do so.

Let’s put it another way: At any given time, grocers have spare resources. Think empty parking spaces in your lot, unused carts, unoccupied aisle space, idle employees. Upside’s personalized promotions influence more customers to visit your stores, which helps you to optimize your existing spare resources and operate more efficiently. 

By listing your locations on Upside, you can earn revenue equivalent to opening new stores without the overhead of actually opening them. And of course, since no shovels ever hit the ground, it takes place in a fraction of the time and with none of the upfront costs.

This revenue leads to profit because our methodology recognizes when a transaction is incremental for the retailer. If an existing customer joins Upside and behaves the exact same as they did without Upside, we pay for the promotion in full.  

Real results for grocery retailers

Schnucks, a regional grocer based in St. Louis, is a great example of what Upside’s marketplace can do for your business.

The brand has a highly successful loyalty program with over two million members. It joined Upside in 2021 in order to increase its customer acquisition capabilities and fuel that loyalty program with a steady stream of new shoppers.

In the first two years that we worked together, Upside drove incremental revenue equivalent to two new stores for Schnucks. That incremental revenue represented a 2% lift in same-store sales, achieved primarily by a 60% increase in the number of visits that infrequent and occasional customers were making. 

Grocers that join Upside can experience a “grand opening” immediately, gradually seeing the growth payoff over time.

Get in touch with our team of grocery experts to learn more.  

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