LOBYCO SURVEY: U.S.GROCERY SHOPPERS CRAVE PERSONALIZATION AND GAMIFICATION
70% of consumers are interested in AI-generated shopping lists
COPENHAGEN, Denmark – 17 September, 2024 – Lobyco, the global leader in grocery loyalty programs, today announced the results of its inaugural 2024 Grocery Pulse survey, which examined U.S. consumers’ experience with grocery loyalty programs, technology, and engagement methods. One major theme of the survey, gamification, was described by more than half (55%) of respondents as “very” or“extremely” important—but is seemingly underutilized by retailers.
“The survey results illustrate numerous opportunities for U.S. grocers,” said Jan Madsen, CEO at Lobyco. “Consumers love engaging with their local grocery stores and are eager for more. Grocers should continue to offer personalization wherever possible—especially personalized offers on shoppers’ favorite products. Gamification is also a must. It drives shoppers in-store, encourages spending, and nurtures loyalty.”
Gamification is popular among consumers but largely underutilized.
Consumers love playing mini games as part of their grocer’s loyalty program. A vast majority (84%) of respondents said that gamification is a key feature of loyalty programs, and 55% (including 67% of Gen Z respondents) believe it is “very” or “extremely” important. When they win these games, more than half (59%) will visit a retail location to redeem rewards.
But despite its popularity, gamification appears to be under-utilized in grocery loyalty programs—just 6% of consumers have actually played a scratch-to-win or spin-to-win game. Incorporating gamified elements with personalized rewards could help grocers boost store loyalty and retain market share.
Personalization helps keep customers close.
Grocery retailers are working harder than ever to retain customers, given recent inflation and the ubiquity of online shopping and curbside pickup. Personalized promotions—which a stunning 93% of respondents described as “important”—can help make customers feel more valued. Nearly half (42%) of consumers are drawn to certain products after receiving personalized offers.
Personalization also encourages spending—overall, 39% are inclined to make more frequent purchases after receiving personalized offers, including 44% of Millennials and 46% of Gen Z. To keep customers coming back, grocery retailers must engage with resonant, individualized offers.
Consumers value options at the checkout.
When respondents were asked to list their top checkout options, an equal share (38%) ranked traditional checkout and self-checkout as their top choice. But a generational analysis reveals more—older generationslike Boomers (56%) and Gen X (41%) prefer traditional checkout, while Millennials (42%) and Gen Z (45%) prefer the convenience of self-checkout.
As for shoppers’ second-best checkout option, self-checkout(36%) appears more popular than traditional cashiers (25%), which may signal a preference shift toward automated, self-serve experiences. To keep customers happy, U.S. grocers should offer both checkout experiences.
Inflation hasn’t had a big effect on loyalty programs.
During periods of relatively high inflation, consumers might be expected to join loyalty programs to capture more value from their spending. But this isn’t happening in the grocery space. Most (54%) shoppers say that inflation hasn’t changed the number of loyalty programs they use, and 21% now have fewer loyalty memberships. To improve engagement and boost customer loyalty, grocers should clearly communicate and celebrate the ways their loyalty programs add value.
Consumers see AI’s potential in grocery shopping.
For many, grocery shopping can feel like a chore—but AI can make it much easier. Smart technology can build a shopping list based on a photo of a recipe, a use-case which 70% of respondents found interesting and 41% found "very” or “extremely” interesting. Nearly half (49%) of Boomers and 66% of Gen X were at least “somewhat” interested.
Consumers were also intrigued by AI-generated shopping lists based on meal planning. Overall, 44% were interested, including 31% of Boomers, 41% of Gen X, 52% of Millennials, and 51% of Gen Z.
Customer-facing AI is still a novelty in grocery settings, and grocers shouldn’t rush to implement the technology. But with very real potential to make shoppers’ lives easier, it’s worth researching as a potential feature of loyalty programs.
“Today’s grocery technology drives efficiency, engagement, and loyalty,” said Madsen. “Customers love when their neighborhood grocer can anticipate needs and make their lives easier. But technology isn’t a replacement for personal touch. Grocers should delight their customers by making them feel valued as individuals. At Lobyco, we always look for ways to help our customers add more value, deepen personalized touchpoints, and improve shopper experience.”
To learn more about Lobyco and the 2024 Grocery Pulse survey, visit booth #A1044 at Groceryshop or download the survey here.
Survey Methodology
Lobyco partnered with a third party to facilitate this survey, which connected with 2,168 respondents across the United States who described themselves as the primary grocery shopper in their household.
About Lobyco:
Lobyco builds engaging loyalty, promotions and checkout propositions for retailers around the world. The company’s versatile and valuable marketing toolkit powers targeted and personalized customer engagement, unlocking superior experiences that keep shoppers coming back for more. Lobyco’s solutions are enriched by gamification, continuity and self-checkout to ensure the customer remains at the centre of the relationship. With grocery clients in North America, EMEA and APAC, Lobyco is precisely tailored to work with grocers, grow their share of wallet and unlock new revenue streams.
Media:
Matter Communications for Lobyco
lobyco@matternow.com
