As the bar raises across the board for grocers looking to provide an intuitive and compelling omnichannel experience, those that can harness consumer data to tailor their offerings to the unique needs of their individual customers have the advantage. Netherlands-based multinational grocery company Ahold Delhaize, whose brands range from Albert Heijn to Stop & Shop to FreshDirect, is doing just that.
On a call with analysts Wednesday (May 11) discussing the company’s first-quarter 2022 earnings results, Chief Financial Officer Natalie Knight shared how the grocer is using information about its shoppers’ behavior to boost digital engagement and loyalty.
“Our increasingly omnichannel formula is really working for us and the customer,” she said. “The transparency we are creating through our omnichannel ecosystem is unlocking the power of data and insights. These in turn are helping us to speed up, innovate, shape and adapt our daily commercial initiatives at a local and personalized level, in-store and online, fueling growth and/or market share gains.”
In the United States, at least, online grocery shoppers are making more purchases through these digital channels over time, according to data from PYMNTS’ study “Satisfaction in the Age of eCommerce: How Trust Helps Online Merchants Build Customer Loyalty,” created in collaboration with Riskified. The study, which drew from a survey of more than 2,100 U.S. consumers in early 2022, found that 58% of online grocery shoppers increased the amount of digital shopping they did in the past 12 months.
Read more: Merchants Risk Losing 40% of Online Retail, Grocery Customers Over Trust
However, the study also found that grocers must work to retain their digital customers, unable to take their loyalty for granted. Forty percent of online grocery shoppers reported being very or extremely likely to switch to a new merchant if they believe the merchant they are using is no longer trustworthy, and 46% reported being somewhat likely.
On the call, Ahold Delhaize President and CEO Frans Muller noted that, while comparable sales declined in Europe in the quarter, trust rose.
“We see customer trust and loyalty as an important indicator of how well we are doing, and this is clearly reflected in effect that our overall market share is increasing, being particularly robust at Albert Heijn and bol.com,” he said.
One of the key battlegrounds for consumer loyalty right now is price, with rapid inflation having many consumers seeking more affordable options. Ahold Delhaize has the advantage of being a major multinational company, enabling greater flexibility than smaller chains and independent players have when it comes to pricing. Muller said the company’s private-label products give it an additional advantage in understanding how to tackle inflation.
“Consumers globally are feeling the pressure of high inflation rates,” he said. “With our own private-label brands, … we can deconstruct products down to component materials, like raw materials, packaging, energy and transportation, so we have a good sense of what a product should cost.”
He added that special offers and loyalty program deals also help the company appeal to these cost-conscious consumers, in turn enabling further digital advancement.
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