Brand loyalty is a critical component of revenue and profitability for grocery stores. According to Accenture, 90 percent of enterprise retailers use a loyalty program. Members of loyalty programs generate between 12 and 18 percent incremental revenue growth annually, and companies with loyalty programs grow their revenue 2.5x faster! 

As food inflation eases, prices continue to increase for many food items. A customized loyalty program can be the icebreaker that connects consumers to a business and empathizes with their challenges with higher prices. You recognize that consumers are looking for better, simpler alternatives and want to help! A well-planned rewards program can turn infrequent shoppers into long-time advocates of your store. 

Implementing the right program:

There is no such thing as a singular perfect setup for a rewards program, but these features give grocers invaluable data to make strategic decisions and operational efficiencies:

• A point system that rewards frequent shoppers using local vendor and consumer packaged goods incentives
• A system that rewards higher spending, most effectively by increasing visits.
• Data mining and target marketing to appeal to individual shoppers’ preferences, tastes, and trends
• Real-time POS integrations allow you to track sales across multiple channels. 
• An ability to control the rate of macro markdowns for occasional customers, rewarding frequent patrons with personalized pricing. This, in turn, keeps expenses lower, can increase margins and encourages the use of the loyalty program.
• Provide more reward points for generic and private-label brand products. Private labels are unique to your store and usually have a higher retail margin than brand names. 

Provide tailored experiences

Co-Branding: Collaborate with local gas service stations to provide a points and fuel program that offers real-time points or fuel rewards. Have customizable tiers to reward higher-spending customers, and fuel/points merchandising (because who doesn’t love “free” stuff and the ability to earn more discounts?). The “points and fuel” approach offers a wide range of POS integrations, is scalable and includes best-in-market pricing. 

Coupon Promotions: Digital coupons are effective because they can be automatically redeemed, feature products from highly sought-after national brands, and be customized for local vendors. Digital coupons increase customer engagement with your website and app.

Mobile app: Extend your reach to customers with online ordering websites and a custom app, seamlessly integrating with digital coupon and e-commerce providers. Your app and website can simplify your customer’s shopping experience while they are running errands. Apps that include a built-in pantry scanner, shopping list capabilities, and access to historical purchases offer customers the convenience they seek.

CRM tools and customer data and analytics allow you to conveniently create attractive email and text messages based on customer purchases in no time while seamlessly connecting with new customers. You get the data to make informed decisions that appeal to all customer demographics, from high-spending shoppers to first-timers.

The benefits for grocers and consumers: 

The value for grocers:

• Robust reporting capabilities to better track program results
• Easy access to dashboard capabilities and management reports
• Message identification for other resources like websites, social media and circulars (advertisements)
• Customer support that is available to the grocer and customers with program questions.
• The adage is true; “Acquiring new customers is harder than retaining an existing customer.”

And don’t forget the value that shoppers get:

• Easy redemption process
• Easy-to-use app
• Member status is clear, including loyalty points, opportunities, messages and more
• Access to monthly and unique specials
• Targeted with other messaging – social media, newsletters, grocery websites, etc.

About Givex

The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 132,000+ active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex’s integrated end-to-end management solution provides Gift Cards, GivexPOS, Loyalty Programs, GivexEngageAI, and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, tackle complex challenges and transform data into actionable insights at www.givex.com.