In the fast-paced grocery industry, understanding and adapting to consumer behavior is crucial. The current landscape reveals a shift in shopping habits, with many customers now frequenting multiple grocery stores. During the recent Grocery Impact event in Orlando, Save A Lot’s Chief Information Officer, Jennifer Hopper, alongside Upside’s CEO, Alex Kinnier, discussed how the company is effectively reaching uncommitted customers—those who shop sporadically or divide their loyalty among several retailers.
According to Kinnier, surveys indicate that the typical consumer now shops at three or more grocery stores. This trend, stemming from various factors including inflation and economic uncertainty, has not only persisted but is also on the rise. For grocery stores, the challenge lies in attracting these divided consumers and converting them into loyal customers.
To tackle this challenge, Save A Lot has embraced a multi-faceted approach. As outlined by Hopper, the company has established delivery partnerships, introduced a loyalty program, and made strategic investments aimed at enhancing both in-store and online customer experiences.
E-Commerce Expansion
In 2020, Save A Lot partnered with Instacart to facilitate grocery delivery. Building on this foundation, the company has expanded its e-commerce capabilities by integrating popular delivery services such as DoorDash and Uber Eats. Hopper emphasized that these platforms are essential to meeting customers where they are. The decision to incorporate these services was not only strategic but also supported by positive sales metrics. “Our metrics are there, our sales are there at an aggregate level,” Hopper remarked, indicating the success of these initiatives in reaching new customers.
A noteworthy aspect of this development is the focus on health benefits. Save A Lot has made it possible for shoppers with eligible health benefits cards (from Medicare Advantage or Medicaid plans) to use these as payment methods through platforms like Uber Eats. This innovation caters to a demographic often overlooked in grocery delivery services, illustrating the company’s commitment to inclusivity.
The Loyalty Program
In October, Save A Lot launched Save A Lot Rewards—a loyalty program available through a newly developed mobile app. This app allows independent store owners to customize local offers and provides access to exclusive coupons and deals. This personalized approach not only enhances customer engagement but also encourages repeat visits to physical stores.
Hopper detailed how the freshness of the in-store experience was also a priority. Customers are introduced to remodeled locations that bring a modern flair to the grocery shopping experience, featuring updates from floor to ceiling. This commitment to physical upgrades aims to foster an inviting environment that attracts shoppers while making them feel a sense of belonging.
Localization and Personalization
One of the standout strategies mentioned by Hopper is Save A Lot’s localization effort. Each store owner has the autonomy to create a unique shopping experience tailored to their community. This allows them to partner with local producers and markets. By doing so, the store becomes not just a grocery outlet, but a reflection of the local culture and community. For instance, bringing in products from a nearby farmers market helps establish a connection with the local customer base, making them feel valued.
A Strategic Partnership with Upside
Another critical step in Save A Lot’s efforts to acquire the uncommitted customer base involves its partnership with Upside, a marketplace known for personalized promotions. This collaboration has proven fruitful, with the pilot program achieving a staggering 91% new customer acquisition rate within a select market of 35 stores. “We’ve had a quarter of a million signups and registrants,” Hopper noted, highlighting the initiative’s success in broadening Save A Lot’s customer reach.
The integration of data analytics into their operations is a significant part of this equation. Hopper stated, “From a loyalty perspective, we can start to know our customer,” emphasizing that understanding customer behavior aids in refining existing strategies.
Looking Ahead
As Save A Lot continues to adapt to the ever-changing grocery landscape, the company is optimistic about future developments. Hopper remarked, “We’re just getting to know our customer more—we’re getting there, we’re on that journey.” With continued investments and innovations, Save A Lot aims to leverage gathered data to further enhance personalized offerings by 2025.
By meeting customers where they are—whether through digital platforms, in-store experiences, or tailored promotions—Save A Lot is making strides in cultivating a loyal shopper base amidst a competitive landscape.
