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© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION
Grocery Store Loyalty Programs
Presenter Title Goes HereName of Presenter Goes Here
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 2
80% of shoppers belong to one or more grocery story loyalty program
None 1 2 3 4 5+
20%
31%
26%
12%
5%2%
How many grocery store loyalty progams do you belong to?
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 3
Who are loyalty program members?
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 4
Demographic Breakdown
4% 15% 16% 24% 27% 13%
Smartphone ?
15%Receive food
assistance
40% have children in the household
Relationship StatusMarried 52%Single 22%Widowed/Divorced/Separated 20%Living with partner 6%
67%Yes
33%No
EthnicityWhite 81%
Hispanic 22%
African American 14%
Other/Mixed 5%
18-24 25-34 35-44 45-54 55-64 65+
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 5
Where are they shopping? 47%
4%
20%
12%
7%9%
2%
32%
1%
23%
5%8%
5%
0%
Loyalty Program MembersNon-Members
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 6
Behavioral Overview
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 7
Loyalty programs influence shopper behavior
I shop at stores where I am a loyalty program member more than at stores where I am not.
I try new products that I may not otherwise try because of the
discounts/rewards I get as a loyalty program member. I often buy more than I would
otherwise because of the discounts/rewards I get as a loyalty
program member.
50%
67%
46%
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 8
Shoppers take advantage of the benefits loyalty programs afford them
35% plan weekly
meals around items on sale
with their store loyalty
cards
37% load coupons
to their loyalty cards because it is easier than
clipping
47%say their favorite brands are more
affordable because of their store loyalty card
73% use their loyalty
cards every trip to the grocery store
79% believe their grocery
store loyalty cards save them money
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 9
Before loyalty members’ last grocery trip…
59% read the store’s weekly circular
43% cut coupons out from the newspaper
34% loaded digital coupons to store loyalty card
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 10
Favorite Loyalty Program Features
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Shoppers were asked about their favorite features of their grocery store loyalty program…
Percent of Shoppers Who Indicated They Enjoyed Each FeatureDigital coupons that can be “clipped” to my loyalty card 45%
Relevant offers 41%Printable coupons 38%
Unadvertised specials 34%
Targeted content based on items that I normally buy 30%
Free samples 27%
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 12
Barriers to Enrollment
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 13
“I shop at the store where I can find the best price, regardless of store loyalty card membership.”
#1Barrier
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 14
Barriers: Privacy and SecurityBarrier Non-Member
Agreement
My personal information would not be kept confidential 17%
The store would gather personal information about me 15%
I would be at risk for identity theft 13%
The store would sell my personal information 12%
I could not opt out of sharing my personal information 7%
The store privacy policy was unclear 4%
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 15
Barriers: Structural
Barrier Non-Member Agreement
I do not like having cards on my keychain 8%
I do not know how to sign up for a store loyalty card 4%
I do not have time to sign up for a store loyalty card 3%
It is difficult to sign up for a store loyalty card 2%
I have too many store loyalty cards 1%
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 16
Barriers: Value Messages
Barrier Non-
Member Agreement
I shop where I can find the best price, regardless of loyalty card membership 39%
I do not feel that there are any real benefits 17%
I do not feel that I save any more money 16%
I do not shop at the store enough to justify the use of a store loyalty card 12%
Stores with loyalty programs inflate prices 9%
I would pay more with the loyalty card than I would at another store 8%
I do not like the rewards available through the store loyalty program 4%
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 17
Moving Forward
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 18
Key Insights & Next Steps • Loyalty program members persist in using conventional promotions
at the grocery store.
• Shoppers are attracted to competitive prices, no matter where they may find them.
• Retailers would be well served to eliminate pertinent barriers and to leverage program benefits that shoppers find most favorable.
• This can be accomplished by exploiting actionable insights from Inmar’s cutting-edge research and consulting team.
© 2015 Inmar, Inc. CONFIDENTIAL – DO NOT COPY, DISTRIBUTE OR USE WITHOUT INMAR WRITTEN PERMISSION 19
Put our insights to work, and start engaging your shoppers in the retail space.
For more information:
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