Trendspotting: Online loyalty hard to come by for food retailers
By
Craig Levitt
Trendspotting: Online loyalty hard to come by for food retailers
It has long been a roadblock for online grocery shopping, “can I trust the fresh produce they are sending me?”
That is just one of the issues holding back online food shopping. Consumers are also looking for loyalty and personalization from their digital experience. When consumers' only option was to go to the store it was easy for retailers to create loyalty and personalization — and a bad melon… well, you could only blame yourself for picking it. For retailers, doing so online is proving to be a bit more difficult. Digital shopping has clearly gone mainstream, but inconsistent fees, fulfillment and loyalty still stall momentum.
According to a new national survey from VTEX, a composable commerce platform provider, consumers are sending a clear message to grocers: make online shopping easier, smarter and more connected. The survey finds that 71 percent of consumers have shopped online for groceries, with 50 percent purchasing groceries online at least once a month, but many shoppers are holding back from deeper digital engagement due to persistent friction in the experience.
The findings reveal powerful insights for grocers looking to scale ecommerce: shoppers overwhelmingly prefer to buy directly from a grocer’s owned digital channels (52 percent), expect loyalty programs to be accessible via mobile apps (45 percent) and want personalization that reflects their household needs (65 percent). Yet fees, poor visibility and lack of control over fresh product selection remain top deterrents.
“The modern grocery shopper expects the same ease, clarity, and control online that they’ve always experienced in-store,” said Daniela Jurado, executive vice president of North America at VTEX. “The challenge, and opportunity, for grocers is to eliminate friction without adding operational complexity. That’s exactly what unified commerce makes possible.”
Among the key findings in the study:
- Consumers trust grocers’ digital channels over third parties: 52 percent shop via grocers’ own apps or websites, compared to just 27 percent using national delivery apps.
- Shoppers are already digital, just not fully converted: 69 percent of respondents shop online for groceries at least occasionally, and 30 percent do up to a quarter of all grocery shopping online.
- Price and fees remain major deterrents: 54 percent cite service fees as a major deterrent, and 49 percent are discouraged by unexpected costs at checkout.
- Loyalty lives online: 79 percent of shoppers use loyalty or rewards programs, and nearly half prefer digital versions.
- Personalization is expected: 65 percent are interested in personalized online grocery experiences based on their needs or history.
So, what does that mean for grocers?
Today’s grocery shopper expects a digital experience that matches the clarity and trust they’ve long associated with physical stores. From branded content to personalized product recommendations and seamless loyalty integration, shoppers want their digital carts to feel like their neighborhood store.
“Grocers can’t afford to treat ecommerce as an add-on,” added Jurado. “When consumers prefer your website over third-party marketplace apps and want a more personalized journey, that’s your opportunity to own the experience. Unified commerce is how you deliver it at scale, and without complexity.”