Customer loyalty in Nordic grocery retail
August 24, 2021
August 24, 2021
New ways of shopping are challenging long-held assumptions about the value propositions that can secure loyal customers and competitive advantage. Success hinges increasingly on creativity and differentiation through hyper personalization - yet finding the right creative mix is proving elusive.
Price still matters, but sustainability, transparency, and purpose are just as important to consumers; perhaps more so.
Read about the case for change in an age of experience and how retailers can win consumer loyalty
read moreWhile online shopping is booming, customers still yearn for in-store shopping and experiences. Increased omni-channel preferences from customers open new opportunities for grocers to design experiences that balance the best of both worlds.
However, national, regional, and above all demographic differences complicate the picture. The young generation in particular seeks more than a transactional relationship and demands meaningful experiences when they shop.
Maintaining the loyalty of grocery retail customers has never been more important.
Our study shows that customers want loyalty initiatives that are omnichannel, emotionally engaging, and highly personalized. Initiatives that recognize their evolving preferences and shifting needs embrace their willingness to shop smarter and more sustainably and that support them in achieving unique personal goals.
Most Nordic shoppers
74%
are members of at least one loyalty program
63%
Yet almost two thirds find them dull or confusing
To understand the Nordic loyalty landscape in grocery retail, we gathered a variety of insights to shed light on the ever-changing industry from multiple perspectives. Not only did we survey around 1600 Nordic consumers and interviewed key industry stakeholders, we also conducted a qualitative mapping to examine loyalty initiatives from 13 Nordic grocers.
The cross-Nordic consumer survey investigated three main areas; customer & user experience, sustainability, and consumer loyalty, to understand the current situation
Researchers examined offerings on 37 factors, including program structure, touchpoints, monetary benefits, services, presented experiences, data and initial communication
To nuance the customer perspective and deepen our insights into current plans and initiatives at grocery retailers, we conducted interviews with key industry stakeholders
In bringing the insights together, we have leveraged existing Accenture industry research done within retail, the grocery industry, consumption, and changing trends
Loyalty is a powerful engine of business growth - and leaders who leverage loyalty as a differentiator can enjoy a considerable competitive advantage. Based on key insights, three specific actions were identified:
Understanding your customers, obsessing about their shifting needs, and utilizing this customer-centric mindset across your organization is key to loyalty success.
Customers now also seek purposeful offerings that help achieve their goals. Design your organization for innovation.
Structure loyalty offerings in a modular way, allowing customers to design their own value proposition for unique benefits and experiences.
Nordic grocers need to move fast...
...from a loyalty program designed for the many, focused on transactional engagement, to a personalized loyalty program designed for the individual, focused on the experiences and recognition.
Read our full report to learn more about the key actions for success.
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