"Grocery" may be a metaphor for how to beat Amazon. Currently, online grocery sales account for only 2 percent of an $800 billion industry (overall online retail sales account for 10 percent of the market). However, the number of online sales is expected to increase as time goes on.
Amazon offers both online and brick-and-mortar grocery sales through its purchase of Whole Foods. Established competitors such as Walmart, Kroger, Costco and Target are not sitting idly by and waiting for Amazon to gobble up market share. In fact, those companies are cutting into Amazon’s share and their experience teaches lessons for decorative plumbing and hardware showrooms.
The grocery wars illustrate that most shoppers are not loyal to a single store or chain. You gain customer loyalty by offering convenience, choice and the ease of purchasing whether it is online or at a brick-and-mortar retailer. The Internet has empowered today’s shoppers to buy on their terms. A recent study found that 80 percent of all shoppers are more likely to buy from retailers that offer a range of convenient, flexible delivery options. For groceries this means same-day delivery, in-store, curbside or drive-through pick up and deliveries to other convenient locations.
Walmart’s web site and grocery app enables consumers to order groceries online and pickup at a local store while even having their orders brought to their cars. In the last year, Walmart expanded same-day delivery to more than 100 metropolitan areas and it appears that these investments are providing better than anticipated returns. Walmart has more exclusive shoppers than any other retail operation with the exception of Amazon. The company increased digital sales 43 percent in the last quarter of 2018.
Communication is another key to obtaining customer loyalty. Consumers expect timely, accurate and helpful information to help them make the right decisions regardless of whether they are buying groceries or a new bathroom. That's why DPHA developed the Member Blog. That’s also why DPHA offers members access to consumer buying guides that answer the questions consumers most often ask. Showrooms should ask customers for permission to message them through different mediums, text, email, tweets, etc., and should provide their customers control on how often, and in what ways, they receive information.
Why should you communicate often with customers on their terms? Eighty one percent of people are more likely to purchase from a retailer that keeps them updated on the progress of an order, found a recent survey by Narvar. Similarly, it is even more important to communicate frequently if there is a problem. Don’t abdicate responsibility to a manufacturer or rep to fix a problem.
Building emotional attachments is an additional cog in creating customer loyalty. Emotional attachments are created by providing an enjoyable purchasing experience. That’s why Trader Joe’s is ranked first in positive customer experiences and generates the most revenue per square foot of any grocery chain.
Ask yourself how you can make the purchasing experience at your showroom more enjoyable?
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