A lot of events have happened in the last two years and most of them had an impact on the retail industry. The COVID-19 pandemic, the war in Ukraine, and now the rise in inflation have influenced everything from the supply chain to customer behavior.
In this article, we are going to focus on one of the biggest challenges in the grocery industry: the rising cost of living. How is the rise in inflation affecting this sector and what can retailers do to keep their loyal customers shopping?
Rising cost of living is impacting shopper behavior
Hundreds of news articles, statistics, and reports show that the inflation rate is growing and has reached an all-time high in many countries. While statistics show that inflation has reached a certain point, the perceived inflation is more drastic. This is due to the fact that people perceive a price increase much earlier and more intensively than a price reduction.
Since the cost of living is constantly rising for the past few months, customers have started to focus more on saving up, instead of splurging. For grocery shopping, this is even more impactful. The frequency of shopping also plays a role. This means that customers observe the price rise of a product they purchase frequently, compared to the price rise of a product they purchase once a year or every few years, like electronics.
In an effort to save up, even when grocery shopping, people are starting to change their shopping habits.
More customers are purchasing own-brand products and are taking advantage of loyalty programs. Also, some shoppers are trying to find cheaper alternatives to their favorite products.
While they can postpone buying a TV or a new phone, people still need groceries every day. Considering this, let’s talk about grocery advertising tactics that will help retailers sell more, even during these times.
Grocery advertising - how to make your product stand out
Many retailers and brands are trying to figure out ways in which they can attract more shoppers and persuade them to buy more. Considering the rising prices, it’s hard to find the right grocery advertising tactics and solutions. Here are a few suggestions:
1. Focus on loyalty programs
More than 40% of consumers use loyalty programs, according to market research by the eWallet app Swapi. This shows you that loyalty programs are a great way to attract more shoppers and to convert them into loyal customers. Considering the rising prices, it's best to offer discounts to loyal customers. This way, you encourage them to buy more and they get to save up money in the meantime.
2. Make your products stand out from the crowd
People still need to buy groceries and they have a lot of options in-store. Another great grocery advertising tactic is to increase engagement and awareness at the point of purchase. With the help of a robotic POP display, you can get the attention of shoppers and make them remember your brand.
Tokinomo, the robotic POSM, is a great solution because it combines sound, light, and motion technology to make products come to life. Campaigns with Tokinomo engage customers right at the point of sale and persuade them to try out your product.
3. Discounts and in-store promotions
Another grocery advertising tactic that you should consider is offering discounts. Considering how much prices have gone up in the last few months, shoppers will be happy to see some products that have a discounted price. Also, BOGO (buy one, get one for free) promotions are great options nowadays.
These are just a few grocery advertising tactics that can help your products stand out, even when prices are scaring off customers. Find the tactics that work best for your business and provide a great experience to your customers.
