FMCG Business March 2021

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[ convenience & impulse retailing ]

THE LOYALTY QUESTION

Andrew Arnold, Country Manager – New Zealand, Shopper Intelligence, talks us through the key areas that convenience retailers should focus on in order to retain shoppers. It’s the age-old question – how do I get more shoppers through my door, and how do I keep them coming back? This question is relevant across the whole spectrum of channels, banners and industries, but for the purposes of this article I’m going to focus on the convenience channel.

There is work to be done in convenience to drive loyalty The starting point for this discussion is simple – is the convenience channel doing a good job at the moment in driving loyalty? We have a few metrics that can answer this question, with the first port of call being satisfaction. Overall, the satisfaction of shoppers is trending downwards. We survey almost 6,000 shoppers annually in the convenience channel and they are telling us that they are less satisfied with their shopping experience than they were 12 months ago. There are some key reasons for 38

FMCG BUSINESS - MARCH 2021

this – price (or perceptions around price) is always going to be an issue and is unlikely to go away anytime soon – and we will address that later on, but that is the first indication that there are improvements that need to be made to retain shoppers. A more concerning metric is ‘Walking Away’. More than half of shoppers (55%) plan to buy what they want before they even enter the store. This is much lower than what happens in other channels like grocery (70% of shoppers in that channel plan what they are going to buy) but is still a significant number. These shoppers know what they want before they go in. They likely have a favourite brand or repertoire of brands, it’s possible they will switch between categories (for example, they planned on buying a chocolate bar but settled for chocolate biscuits) but by and large they know what they want and seek it out in the store. A question we ask shoppers is, what would you do if your