Answering Shopper Demand, Grocers Signal More Investment in Personalization

Wynshop, Inc.

Personalization is becoming a top grocer priority according to Grocery Doppio’s February 2024 Digital Grocery Performance Scorecard.

Grocers’ ability to personalize search results, recommendations, substitutions, and other aspects of digital grocery shopping is closely linked to avoiding churn and increasing profitability.”

— Charles Kaplan, CPO, Wynshop

FT. LAUDERDALE, FL, USA, March 13, 2024 / — Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from the State of Digital Grocery Performance Scorecard for February 2024.

The report revealed digital grocery personalization as a huge opportunity, with shoppers bemoaning poor personalization, and data showing clear benefits to grocers who invest in digital personalization:

86% of grocery shoppers expect a personalized digital grocery shopping experience, but only 11% of them feel that their grocer’s level of personalization rivals that of other ecommerce retailers.

Grocery personalization results in a 17% increase in conversion, while failure to provide personalized substitutes for out-of-stock items has led 69% of shoppers to switch grocers. Nonetheless, only 11% of grocers personalize more than half of the shopper journey at present.

83% of grocers report that personalization is a top priority for them to be competitive, and 72% intend to increase their investment in personalization over the next 24 months.

The monthly State of Digital Grocery Performance Scorecards are one of many resources available on the Grocery Doppio website. The latest report was built around aggregated data analysis of 2.5 million shopper orders and survey results from 45,000 shoppers and 4,300 U.S. grocery executives from January 2022 to the present.

More key findings from the February 2024 Performance Scorecard include:

Overall grocer sales continued to grow, while digital remained flat.
—There was $73.2 billion in grocery sales in February 2024, a 3.1% YOY increase from February 2023.
—13.4% of all February 2024 grocery sales were digital ($9.8B), remaining flat compared to February 2023.

Prices continue to rise, albeit less dramatically, as shoppers and grocers both expect higher costs to stay
—Digital grocery basket value in February 2024 ranged from $36.40 (grocers <$1B) to $182.02 (grocers >$10B), averaging $176.80, a 10.4% increase over February 2023. This reflects a 1.9% increase in price/item.
—63% of shoppers and 72% of grocers expect prices to stay the same or increase in the next three months

“Consumers expect a high level of personalization in online shopping journeys,“ said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “Personalization represents a strong opportunity for grocers to give shoppers what they want, and to thereby distinguish themselves from their lagging competitors.”

“Personalization has a demonstrable effect on the bottom line,” added Charlie Kaplan, Chief Product and Marketing Officer at Wynshop. “Grocers’ ability to personalize search results, recommendations, substitutions, and other aspects of the digital grocery shopping journey is closely linked to avoiding churn and increasing profitability.”

Grocery Doppio is a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. Each month, Grocery Doppio brings together rich, research-driven grocery content, fact-based observations, inspiring perspectives, and deep performance benchmarks that identify improvement opportunities for grocery retailers.

To download Grocery Doppio’s “State of Digital Grocery Performance Scorecard: February 2024,” click here.

Laurel Getz
Wynshop Inc
+1 203-767-5963
email us here

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