Using Customer Data to Unlock Valuable Operational Insights

With shifting trends in shopper behavior, retailers must have a complete view of their customer preferences to create profitable strategies. Access to shopper data can help retailers predict inventory needs, promote relevant products, and reduce costs.

It is no surprise that grocery shoppers want a retailer that caters to their needs, wants, and interests. In 2022, Consumers began using digital assets to aid their shopping trips more often instead of fully completing and purchasing their orders online. Grocery Doppio predicts that there will be a 47% increase in consumers using a mobile device to look up products while in-store shopping this year. Shoppers are now using technology in new ways to save funds while still creating more efficient shopping experiences. In light of these shopper trends, these retailers should: Take ownership of their customer data, leverage existing data to tailor e-commerce and fulfillment operations, and implement an e-commerce solution that provides the flexibility for monetization and personalization.

Grocery retailers must access and leverage customer data to drive profitable business decisions. 59% of grocers agree that third-party delivery partnerships are restraining their profitability, and restricted access to data is a primary component of this problem. Without access to their customer data, making marketing and business decisions that cater to their customers becomes difficult and costly. One example would be using shopper data to track shifting trends. By the end of 2022, inflation caused consumers to change how they shop. To lighten the pressure on their wallets, they began returning to stores & the curbside pickup model gained traction over delivery. Grocery Doppio found in their Year-In-Review performance scorecard that there was a 16% increase in pickup orders in 2022 compared to 2021. Having a complete view of trends among their customers will allow retailers to meet their customers where they are and invest their resources strategically. 

Another common obstacle that ownership of customer data can aid is inventory disruption. An effective inventory management plan will delight customers and help build loyalty. The total digital sales lost in 2022 due to poor inventory management amounted to $23 billion. Deploying an e-commerce solution that provides access to purchasing data allows grocers to plan what items and brands their shoppers are most likely to buy at the store level. Reviewing data on when and what shoppers are purchasing can assist in predicting inventory needs and reduce overall product spoilage.

Customer data will unlock localized strategies. For instance, customers in one location and customers of the same grocer in a different area may have different preferences. Analyzing data to understand these differences will allow retailers to customize recommended products they promote online based on location to win over customer loyalty. 56.4% of shoppers stated that grocers promoting relevant products is a top feature that influenced their satisfaction. Behavioral trends shift, and savvy retailers will stay in touch with their customer base. Inflation has driven private label products to the top of consumers’ grocery lists, and retailers not in a position to track or influence this trend are missing out on crucial revenue.

The digital grocery landscape is constantly shifting. Regardless of shifts in omnichannel shopper behavior, one thing remains clear: without access to customer data, it’s difficult to make profitable business decisions. Grocery retailers can build customer loyalty and create optimized inventory replenishment plans to reduce costs once they implement e-commerce solutions that give them access to these valuable analytics.