Grocery’s Digital Revolution Is Here—What’s Your Voice of Customer Strategy?

February 11, 2019 by Rahul Chadha

The digital revolution has reshaped the retail landscape for nearly every vertical with one major exception—grocery. For a long time, prevailing wisdom said that customers demanded an experience that let them see, touch, and even smell their groceries before heading to checkout.

But that’s changing. Data shows that digital disruption is headed grocery’s way. According to figures released in October 2018 by IGD at industry event Groceryshop, the size of the online grocery market in the US is set to grow from $23.9 billion to $59.5 billion between 2018 and 2023.

And there’s still plenty of room for growth. IGD reported that online grocery’s channel share will hit just 3.5% by 2023, up from a 1.6% share in 2018.

The encroachment of digital means that both grocery retailers and brands will have to rethink old marketing standbys to better appeal to online shoppers. Strategies such as end-caps, print circulars and planograms will have to be reimagined for the digital realm.

Digital investments can have real payoffs for grocers. A recent report from McKinsey & Co. found that grocery companies that were early adopters of technology, including digital solutions, saw a bump of 2% to 5% in earnings before interest and taxes. That’s a great argument for grocery stores to invest in technologies like customer-generated content (CGC) to improve their bottom line.

The TurnTo Advantage for Retailers – Promoting Private Label Goods

The consumer packaged goods (CPG) giants of the world have made huge investments in customer loyalty. But data suggests that grocery shoppers might not have such strong brand fidelity after all. A summer 2018 survey from retail solutions provider Field Agent, for example, found that 46% of customers bought private label store brands always or often when shopping online for groceries or household consumables.

Retailers can tap into the demand for private label goods with upfront placement of customer-generated content like TurnTo’s Ratings & Reviews. Stores can leverage pre-existing fan bases for private label goods—a group that’s likely eager to share their thoughts about benefits and value—by putting five-star ratings and enthusiastic testimonials front-and-center.

CPGs have built up a large amount of trust in their brands over time. To compete, private label brands can use CGC to build their own reservoirs of trust among shoppers. Our recent research found that 76% of shoppers trust the authenticity of product reviews on online stores, underscoring how important CGC can be in their purchase decisions.

The TurnTo Advantage for Brands – The Ratings & Review Showcase

No matter what the product category, brands need to feel relevant, personal and authentic to online shoppers to win their business. For brands in the grocery space, CGC can play a key role in putting products in front of customers, and helping shoppers connect with products on an emotional level.

For example, with TurnTo’s Ratings & Reviews and Visual Reviews™ products, online customers can read and see authentic experiences provided by fellow shoppers. Honest feedback can help lead your customers further down the conversion funnel.

The TurnTo Advantage for New Products – Sampling

Launching a new product in the grocery space is a tremendous challenge. In his presentation at last year’s Groceryshop, Vivek Kalpande, a Group Vice President at Albertsons, shared that an astounding 80% ­to 90% of new CPG product launches are considered unsuccessful. That’s a tough environment for anyone.

One way to make product launches successful is by gathering up Ratings & Reviews before your product is available to purchase. How? With TurnTo Sampling, our turnkey solution that’s dead simple to implement.

Here’s how it works. You ship the products in bulk. We do the work of finding the right target audience, manage fulfillment, and collect feedback from customers. That way when your product is ready to hit the market, there’s already a buildup of CGC waiting for customers on your site. Our solution works equally well for grocers with private labels, brands, or any product that could use a fresh infusion of customer-generated content.

Customer Experience is Everything

TurnTo has been collecting, monitoring and improving customer-generated content for more than 10 years. We have deep, established relationships with brands and retailers. We know how to help them understand not only the right uses for CGC, but also the best ways to go about collecting it.

For grocery, that means asking customers for the right kind of review at the perfect time in their shopping journey. That’s not limited to collecting CGC on purchased products alone.

TurnTo can help with a range of other questions related to the entire customer experience: How was your buy online, pickup in-store (BOPIS) experience? How was your grocery delivery experience? Was your delivery on time? Were your bananas ripe? Were your eggs cracked? Was your ice cream still frozen?

TurnTo’s products can help grocery retailers establish a 360-degree view of the customer and spot problems in the customer journey. It’s this kind of intelligence that will help you stay ahead of your competitors. We’re experts in CGC—it’s why we have the highest collection rate of any of our rivals.

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