Techniques to promote customer loyalty are hardly new to the grocery industry. As far back as the eighteenth century, food retailers gave shoppers metal tokens or paper coupons that they could save up to redeem for rewards or merchandise — and grocers have continued to tinker with ways to incentivize repeat business ever since.
Multiple retailers have recently rolled out updates to their loyalty programs, reflecting the rapid technological advances and intensifying competition grocers are dealing with as they look to keep shoppers from defecting. Growing concerns about affordability and rising food inflation have only added to the urgency for grocers to innovate.
In February, for example, Raley’s launched a new benefit that automatically provides customers with savings at checkout when they enter a phone number — bypassing the need to use coupons. Also that month, grocery cooperative Wakefern Food Corp. said it has stepped up its personalization efforts through a partnership Eagle Eye, which uses artificial intelligence to manage data and customize rewards for shoppers. Food Lion has also worked on changes to its loyalty program designed to make it faster and easier for shoppers to unlock ways to save.
Here’s a look at key moves grocers have recently made to enhance their approaches to building customer loyalty.