More Consumers Opting to Buy Groceries from Deep Discounters

More Americans are buying food at Wal-Mart and other deep-discount store such as Aldi. How are mid-sized chains such as SupreValu and Delhaize Group reacting? They are promoting more private label brands, reducing costs on staple items such as milk and eggs, and offering gas cards. These are all great ways to promote customer loyalty. Is it enough though?

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Consumer Experience: Green Movement No Longer Just a Fad

A recent study by AMP Agency found that green attitudes and behaviors are less of a fad and instead are now the makings of a macro movement. The survey polled 3,2000 consumers ages 18-49 to capture opinions, beliefs and perceptions of people’s relationships with the “green movement.” Nineteen percent were defined as “influentials” or “Green Evangelists” who after learning that a company was environmentally friendly, were more likely to recommend the product or company to others.

What does this mean for brands?

Companies need to focus on creating environmentally friendly products/services to align with how consumers work and live. For instance, Toys R’ US introduced their new line of wooden toys a few months back. If a company has no way of “greening” their products or services, then they can focus on perhaps making their stores more energy efficient by changing the light bulbs or reducing waste by not using plastic bags.

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Nielson May Be Watching You While You Shop

TV ratings giant Nielsen is branching out beyond television and into grocery and retail stores. Nielson has installed high-tech cameras and sensors in hundreds of U.S. stores to see (anonymously) if product displays actually persuade people to buy differently.

Grocery and retail stores typically charge product companies fees for this kind of placement, so the Nielsen data could determine if these placements are worthwhile.

Companies such as Proctor & Gamble, which spend $10 billion per year on product discounts and prominent display space, have not had very specific information on what they have been getting for their in-store investments. The consumer data Nielsen can provide to Proctor & Gamble and other companies will help them measure results.

One concern for this type of consumer data is privacy issues. Customers might be annoyed at the idea of being watched too closely. Nielsen says that they are aware of this risk. They purposely avoid matching a shopper’s name with purchases.

“It’s OK if they use information in an aggregated fashion,” said Paul Stephens, director of policy and advocacy at the Privacy Rights Clearinghouse.

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Customer Experience and the “Wow” Factor

Safeway, one of North America’s largest food retailers, plans to remodel approximately 1,7000 stores by 2010. They have just completed the 1,000th remodel in Novemember.

Safeway is calling this remodel “The LifeStyle Concept.” The retail chain is looking to expand their product line and offer more variety. For instance, they have a floral kiosk that can provide arrangements for weddings, dinners, and other special occasions. The olive bar will offer a variety olives from a walk-around self serve bar. Some stores will have a Starbuck’s with in-store seating.

A store that relflects an individual’s attitudes, values, and lifestyle enhances the customer experience. Safeway is truly going for the “wow” factor.

A customer experience program can benefit retail chains that have recently gone through or are going through a remodeling period. Mystery shopping programs can help identify what changes have made the most improvement and the least. Also, it is important to make sure that all 1,700 stores provide the same customer experience.