In an era where consumer expectations are continually evolving, the grocery sector stands out for its strides in personalisation. Recent research from Epsilon highlights how grocery brands, such as Morrisons, Sainsbury’s, and Waitrose, have excelled in personalising customer experiences, outperforming other industries like technology, fashion, and beauty.
Epsilon’s study, which surveyed over 2,000 consumers in the UK, revealed significant findings: 20% of respondents reported seeing improvements in brand efforts to tailor messages and interactions, with the grocery sector being a notable highlight. This percentage mirrors the overall consumer experience in groceries, indicating a growing trend towards personalisation that resonates well with shoppers.
One of the common pitfalls in digital advertising has been the saturation of repeat ads for items consumers have already purchased. The good news is that 85% of respondents stated they no longer encounter repeat advertisements for products they have already acquired. This progress signals a shift toward smarter advertising strategies driven by data insights.
The survey also compared the grocery sector’s advancements against other categories. Following groceries, the technology sector, including leaders like Apple and Samsung, garnered a 14% recognition rate for improvements in personalisation. The fashion and apparel sector followed at 13%, while travel and food and beverage sectors trailed with 12% and 11%, respectively.
Elliott Clayton, Managing Director UK at Epsilon, emphasised the importance of a data-driven marketing approach. “These improvements illustrate how first-party data-led strategies contribute to a more positive consumer perception of advertising. Groceries have long been at the forefront of retail media, leveraging frequent purchases and diverse customer bases to enhance the use of transactional data,” he explained.
Brands like Morrisons and Waitrose have introduced personalised experiences to elevate customer satisfaction. For instance, Morrisons has implemented its “My Points Boosters” scheme, which allows customers to select their preferred brands from a personalised list. This initiative not only acknowledges individual preferences but also incentivises customer loyalty. Similarly, Waitrose has impressed consumers with personalised vouchers, reflecting their unique shopping habits.
However, the journey toward effective personalisation is not without its challenges. A particular concern lies in determining the incrementality of retail media campaigns. While many ads successfully reach intended audiences, 17% of respondents reported seeing ads for products they were already planning to buy. This suggests that issues of relevance persist across various sectors, including groceries.
The study also highlighted consumers’ frustration with irrelevant advertisements. A significant 56% of respondents noted encountering ads that did not align with their interests, causing them to scroll past these promotions. Additionally, frequency of ads proved to be a sticking point; 47% of respondents stated they often saw the same ad too many times, indicating a need for brands to reconsider their advertising strategies.
The timing of advertising appears to be another area requiring attention, with 34% of consumers reporting that ads often disrupt their experience at inconvenient times. This feedback underscores the necessity for brands to refine their targeting and timing strategies.
Despite these challenges, Epsilon’s data point to substantial progress in personalisation efforts within the grocery sector. The ongoing demand for tailored experiences among consumers places pressure on brands to continue innovating in their advertising approaches while navigating the complexities of the digital landscape.
To summarise, the grocery sector’s lead in personalisation reflects a combination of consumer expectations and advancements in data-driven marketing strategies. With brands like Morrisons and Waitrose setting the standard for personalised experiences, it is clear that the grocery industry is not only responding to consumer demands but also shaping the future of retail media. The insights gathered from Epsilon’s study shed light on the need for continuous improvement in relevance and timing to truly satisfy the modern consumer.