Grocery is a leading industry in the loyalty space—our surveys say that nearly 80% of people belong to a grocery program. But the average grocery shopper belongs to several different programs, and spreads around their purchases. Upside helps you win more wallet share by influencing the whole customer lifecycle—not just in retention, where loyalty programs are most effective—to boost the impact of your existing investments.
Anywhere from 20% to 40% of your customers are signed up for your loyalty program. There’s a big opportunity to get those customers to visit more often, and bring non-participating customers into the fold. Click the toggles to see what layering on Upside can do for your business:
Loyalty programs only speak to your current customers
77% of grocery shoppers say that they compare prices across stores. Your programming has already won over your most loyal customers, but what about the customers who chose not to sign up? Or the customers you don’t know yet? You could turn to your marketing budget, but acquisition costs have risen 200%+ in the last eight years. So unless your customers’ lifetime value has increased by the same amount, that leaves your business in the red.
Loyalty programs use customer segmentation to influence customers
Grocers often segment their customer base to provide contextually relevant messages and targeted promotions for each group. Often, these segment-specific incentives drive top-line revenue growth. But if your average loyalty customer is shopping with you 2-4 times per month, that means there are more visits you could be winning.
Loyalty programs are great at boosting top-line spend from engaged customers
Loyalty programs are key for nurturing existing customer relationships and incentivizing repeat visits. But it’s still unclear whether that increase in revenue is profitable. It’s increasingly difficult to assign credit to the specific touchpoint that led to a net-new purchase, and top-line lifts in loyalty purchases can be incorrectly attributed to macroeconomic trends or organic sales increases. If retailers are spending more on the loyalty program than they are making with increased customer spend, it’s bad for business.
Loyalty programs only speak to your current customers
Your programming has already won over your most loyal customers, but what about the customers who chose not to sign up? Or the customers you don’t know yet? You could turn to your market budget, but acquisition costs have risen 200%+ in the last eight years. So unless your customers’ lifetime value has increased by the same amount, that leaves your business in the red.
Loyalty programs use customer segmentation to influence customers
Retailers often segment their customer base to provide contextually relevant messages and targeted promotions for each group. Often, these segment-specific incentives drive top-line revenue growth. But if your average loyalty customer is shopping with you 2-4 times per month, that means there are more visits you could be winning.
Loyalty programs are great at boosting top-line spend from engaged customers
Loyalty programs are key for nurturing existing customer relationships and incentivizing repeat visits. But it’s still unclear whether that increase in revenue is profitable. It’s increasingly difficult to assign credit to the specific touchpoint that led to a net-new purchase, and top-line lifts in loyalty purchases can be incorrectly attributed to macroeconomic trends or organic sales increases. Not to mention, most loyalty members churn within a year. If retailers are spending more on the loyalty program than they are making with increased customer spend, it’s bad for business.
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