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As 2015 kicks into full swing, Tara Oberg, senior associate at data-driven consultancy Seurat Group, gives her top 10 list of strategies that supermarkets can use to drive revenue in the coming year.
1. Build Loyalty through trust. The continued rise of natural and specialty grocers displays the value in creating a loyal shopper base by offering products and brands that buyers can be confident about - both in terms of safety and quality. These retailers are creating proprietary rating systems that consumers trust to guide them. Produce, for example, is ranked as Best, Better, Good and Unrated based on farming practices, GMO transparency and other sustainability metrics.
2. Look to frame-breaking channels for inspiration. Retailers across channels have begun to look "behind them," toward smaller, more entrepreneurial channels to stay informed around the latest innovation, macro-trends and consumer preferences. As an example, within the pet industry, Petsmart and Petco continuously learn from smaller players - mom and pop pet stores and local/regional chains - who are more in touch with their pet owner communities and more in tune with requests and preferences.
3. Do more to understand your customers. While many retailers have shopper data, most get surprisingly little out of it. Shopper segmentations are a common way of understanding the subsets of your shoppers. However, this work becomes most actionable when retailers are able to prioritize high-value segments and understand the moment and message necessary to trigger a purchase. This process drastically improves efficiency and simplifies marketing, ensuring it's not just a game of trial and error.
4. Turn double-digit ecomm growth into triple digit. Despite slower adoption of ecommerce for certain grocery categories, online purchase remains an avenue for revenue growth for most retailers, but it needs to be done right. Success in this area comes from being consumer-led and understanding how to connect the array of touch points, from navigational behaviors and purchase drivers to delivery options (home delivery, curb-side pick-up) for your store(s).
5. Partner to most effectively use your data. Collaborative planning is invaluable, and there are often huge benefits from retailers sharing granular purchase behavior data (at the HH level, beyond reports) with go-to partners who have experience working with it. We have seen this kind of data used to create new insights and actions that double the rate of category growth in a market.