Want to know what trends will shape the grocery industry in 2023? Well, experts are predicting that the effects of inflation will still be lingering, the growth of retail media will continue, and the total return of the in-store shopping experience will have a significant impact. Grocers have faced many challenges in the past three years, mainly beyond their control. The global pandemic caused fear and safety concerns that drastically changed grocery shopping.
In 2022, the health crisis took a back seat to skyrocketing inflation and supply chain disruptions. Although prices are slowly decreasing this year, many consumers still feel the financial strain after months of paying more for groceries and other products. Stay tuned to learn how market research can help grocery brands thrive in unpredictable economic environments.
Customer Insights For Grocery Retailers
“The bar is raised in terms of what grocers have to do to deliver on value, and the consumer really isn’t willing to sacrifice what they perceive to be value in fresh goods. The challenge for many grocers is to figure out how to deliver on that. The bar is higher, and it costs more to do business.” -Bill Aull, partner McKinsey & Company
Tailor Product Offerings & Marketing Strategies
Every business category can benefit from market research, the grocery industry being no exception. Grocers can better understand their target audience and tailor their product offerings and marketing strategies by gathering customer insights and preferences.
For example, grocery chains in the Pacific Northwest often highlight local farms and sustainable agriculture in their marketing efforts, a differentiator that may hold less weight in other parts of the country.
Identify Industry Trends & Opportunities
Market research can also help identify industry trends and opportunities, informing retailers’ decision-making and helping them stay ahead of the competition. Inflation will continue to make consumers pinch pennies and seek the best deals at grocery stores.
As a result, private-label brands are expected to rise in popularity, a factor many groceries can capitalize on in 2023.
Develop Effective Pricing Strategies
Finally, market research can aid in developing effective pricing strategies that resonate with customers and drive sales. By leveraging various online research methods, grocery retailers can create a loyal customer base and ultimately increase their revenue and market share.
While grocers don’t have complete control of the prices of goods, they can promote items/brands that customers want based on personalized data from mobile shopping applications or in-store tracking via loyalty programs. Offering customized coupons based on past shopping behavior is a powerful way to build brand loyalty during economically stressful times.
Online Market Research And Community Building For The Grocery Industry
The grocery industry relies on market research to gain insight into consumer preferences and stay competitive. This can be achieved through customer surveys, virtual interviews, and focus groups, which offer valuable information on consumer behavior and buying habits and identify areas for improvement in the shopping experience.
In addition, online reviews and ratings have become essential in understanding consumer perception and can provide feedback for grocers to enhance their offerings. Social media analysis and engagement also allow grocers to monitor consumer sentiment and build brand loyalty.
Industry data and reports also provide insights into market trends, competitor analysis, and customer demographics, enabling grocers to make informed, data-driven decisions to meet the changing needs of shoppers.
By utilizing a range of market research techniques, grocery retailers can better understand and serve their customers, leading to increased growth and profitability in the industry.
Tips For Getting Started
Conducting effective market research and building a community is crucial for success in the grocery industry.
- Identify Research Goals
To begin with, it’s essential to have a clear research plan that identifies research goals, target demographics, and preferred research methods. This will help ensure the research is focused and efficient and delivers actionable insights.
- Use A Variety Of Research Methods
Various research methods, such as surveys, focus groups, and social media analysis, can comprehensively understand consumer behavior and preferences.
- Build Community
Building a community requires engagement and customer communication through social media, email campaigns, events, and other channels. Grocers can create loyalty programs, offer personalized promotions, and encourage feedback to foster a sense of community and customer loyalty.
- Analyze Feedback
Regularly analyzing customer feedback, industry trends, and competitor analysis can also help grocers stay ahead of the curve and identify new opportunities to enhance their offerings.
Market Research Use Case
A small grocery store in a suburban town struggled to attract and retain customers. Despite offering high-quality products at competitive prices, they were losing out to larger chain stores in the area. The store manager invested in social media analysis and an online recipe-sharing program to improve their business.
The store’s social media team began analyzing its online presence to determine which platforms were most effective for engaging with customers. They started posting more frequently, sharing store news, promotions, and recipe ideas.
The online recipe-sharing program was a hit with customers. The store’s website featured a section where customers could submit and share their favorite recipes, which were then published on their social media pages. Customers loved the idea of being able to share their creations with others, and the store saw an increase in engagement and website traffic.
The grocery store’s social media analysis and the online recipe-sharing program proved to be a winning combination. By leveraging the power of social media, they could connect with customers on a more personal level and build a loyal following. The store’s manager was thrilled with the success of their strategy, and the store’s future looked brighter than ever.
Bottom Line
Market research and community building are crucial for the success of the grocery industry. By conducting thorough market research, grocers can better understand their customers’ needs and preferences, which can help them improve their offerings and services. Through community building, grocers can create a sense of loyalty among their customers, encourage repeat business, and create positive brand awareness.
