Dive Brief:
- Inflation is causing shoppers to view the grocery shopping experience with greater scrutiny. Nine in 10 shoppers say grocery prices have risen in the past year, and 2 in 5 say they notice in-store problems more than in the past, according to an Axonify study released last week.
- Another 3 in 5 say that a poor in-store experience feels frustrating in the current economic environment, according to the survey of more than 1,200 shoppers in the U.S. and Canada.
- “The good news is that many of the problems shoppers notice most aren't expensive to fix,” Melissa Burghardt, CEO of Axonify, said in an email. “They're execution problems, and execution is within a grocer's control.”
Dive Insight:
Grocers have no control over inflation, but they do have control over how it feels to shop their stores. Businesses that get it right can turn the current challenges into an opportunity.
One of the key ways to improve the experience is minimizing out-of-stocks. About one-quarter of consumers said out-of-stocks and poor product selections were a reason they would reduce visits to a grocery store, according to Axonify.
“Nothing frustrates a shopper who's already paying more like driving to the store for something that isn't there,” Burghardt said.
Another one-quarter of customers say they’ve cut back store visits due to long lines. Such problems can be solved by having enough staff and the right staff in place.
“Clean aisles, organized shelves, accurate signage and full shelves don't happen by accident,” Burghardt said. “They happen when frontline teams move beyond executing tasks and start relying on judgement grounded in standards.”
The same forces causing grocery prices to rise are also putting pressure on budgets, but enabling a team of associates who can deliver a great experience doesn’t necessarily require more money, according to Burghardt.
“Our research shows that friendly, knowledgeable and available staff are among the strongest drivers of how shoppers rate their experience,” Burghardt said. “Tight budgets don't have to mean fewer people or less capable ones. They mean getting smarter about how you enable the team you have.”
Putting more staff on the floor can still elevate the experience. Target, for example, credited adding more labor hours, as well investing in associate training and support, for helping it reach three-year highs for NPS and customer satisfaction scores earlier this year.
The vast majority of shoppers visit multiple grocery stores every month, according to Axonify’s research. The challenge is ensuring your store becomes the one that becomes the regular choice, not the one that gets dropped as habits change.
Price gets people in the door, but experience is the differentiator that can even the playing ground between all grocers, according to Burghardt.
“Premium or local grocers can’t out-discount a national chain, but they can out-experience one,” Burghardt said. “Clean stores, knowledgeable staff, fast checkout, and shelves that are consistently stocked with a good variety of options are the reasons a shopper makes your store a habit rather than an occasional stop.”
