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The state of the grocery industry

4 trends shaping the next normal

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The COVID-19 outbreak has led to a surge in grocery shopping, particularly online, as consumers stock up while spending more time at home. Although grocers benefit from strong sales during this period, they have also been overwhelmed with challenges, ranging from managing backlogged supply chains to implementing new delivery and curbside pickup options.

However, grocers can not assume that customers will give them a pass indefinitely for operational issues and poor customer experience that occur during this period.

After reading this report, you will understand how grocers can overcome COVID-19 related challenges and build customer loyalty that lasts beyond this crisis. The report includes insights and data on prominent trends shaping the next normal in the grocery industry, including:


Low customer acquisition costs

  • Customers are organically seeking out online grocery options, meaning grocers can advertise less.
  • Customer loyalty is relatively low in this environment, so grocers need to put resources that might have gone into advertising into customer retention.
  • Getting a customer to their third online grocery purchase with the same grocer is the magic number that makes them very likely to continue shopping with that brand.


New demographics flocking to online grocery

  • Online grocery has been booming across demographics, including seniors.
  • Many consumers appear likely to continue shopping online even after the outbreak subsides.
  • Grocers can retain online shoppers by leveraging data and AI to create personalized experiences, considering the variety of customer types that are turning to this channel.


The rise of contactless commerce

  • Mobile order and pay (MOP) technologies are becoming more practical as grocers make safety paramount.
  • Grocers can use QR codes or near-field communication (NFC) technology to minimize physical interactions during in-store checkout.
  • Contactless commerce adoption had been relatively slow prior to the outbreak but could become more prominent as customers experience these options during this period.


Curbside pickup growth

  • Related to contactless commerce, grocers can use curbside pickup options to minimize the number of customers within a store.
  • Customers value the flexibility that curbside pickup provides.
  • Grocers can earn customer loyalty by offering curbside pickup and tailoring marketing to reach customers who might want this option.

Additional resources

Thriving in the age of Amazon Go

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Emerging from COVID-19

Even before the impact of COVID-19, the customer engagement landscape was undergoing significant change. This guide contains insights into consumer expectations and concerns as well as best practices that brands can put into action.

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Roundtable on building consumer loyalty

In this virtual roundtable, our panel of consumer brand experts discuss customer engagement best practices, consumer expectations and changing behaviors, and embracing digital transformation among economic turbulence.

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Optimization not cannibalization

You want to move product but you don’t want to lose money through an over-reliance on discounting. What you really need is a way to promote just the right offers to just the right people: optimizing engagement without cannibalizing revenue.

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Ready to Get Started?

Plexure is a leading global provider of mobile centric customer engagement solutions. Essentially, we help brands deliver highly personalized experiences at scale. We harness the power of data and AI to identify the right offers, content, loyalty programs and product recommendations for each of your customers and enable a seamless buying experience.

Start building loyalty Download the report