Digital Transformation Agency

Tomorrow’s supermarkets need to get truly, madly, deeply obsessed with customers (but not in a creepy way)

By Ally Waring | Senior Strategist

RAPP

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January 18, 2018 | 6 min read

In 2018, we want brands to be obsessed with us. As such, nowadays, it often seems like some brands know what we want before we do – we’ve actually come to expect it.

Take, for example, the remarkable changes we’ve seen in grocery shopping. We’ve seen the decline of big supermarkets, a surge of convenient ‘express’ stores, and quick, healthy services such as Hello Fresh are becoming more popular with consumers valuing quality and convenience over price.

Future supermarket

How can supermarkets respond to changing consumer behaviour?

But how do they achieve future-ready solutions tailored to the needs of the modern-day consumer?

Let’s start with a retailer already winning in the age of the consumer – Amazon. With a sophisticated data-gathering operation, they are constantly evolving to prove that they are obsessed with us all.

In fact, it’s so good that it’s borderline creepy. Recently, Amazon built-in the Alexa voice activation feature in its ‘Dash Wand’ instant-ordering gadget. Amazon was so desperate to understand and collect data on your wants and needs that it was giving this gadget away for free(ish). We could say that, if Amazon was a person, it would be the clingy teenage ex-boyfriend outside your window serenading you with his ukulele.

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The question is – do all retail brands need to become this creepy in order to survive? We think they do. In fact, understanding you, should be the only thing they’re concerned with.

Supermarket chains need to sit up and look at their customers’ individual journeys: the multiple touch points and objectives assigned to each which translates into a truly valuable experience for the customer. Not only would this improve understanding of consumer needs, it would further motivate brand consideration, engagement and advocacy – three things which any successful brand should be building with you as a valued customer.

Currently, traditional supermarket brands are catering to broader consumer demand, instead of individual consumer needs and we are seeing their demise as a consequence. ‘Branded Houses’ such as M&S and Tesco have suffered by expanding into a broad range of different categories without focusing their efforts on gaining insight into their consumers’ data. By trying to over-expand and maintain their own multitudes of sub-categories and divisions – for example, M&S’ Home and Clothing or Tesco Bank and Mobile – they have suffered financial and consumer losses.

For example, a £6.4bn loss in 2015 shook Tesco who had cashed in on multiple innovations in the market to build a holistic, all-encompassing customer experience. The resource required in continually delivering the quality associated with this type of model proved impossible in the modern market.

Smart acquisition

On the other hand, expansion doesn’t have to mean a reduction of quality in customer experience (CX). Looking to the recent acquisition of Whole Foods via Amazon we can see that, for tech-giant Amazon, this means an expansion of their food offering (previously operated under the label of Amazon Fresh). While the company has yet to craft a physical presence, the acquisition of Whole Foods could mean that they expand their services through Whole Food's existing brick and mortar outlets. This solves a problem for Whole Foods too, whose recent experimentation with smaller shops failed within a year.

Another prime example of consumer-obsessed success are delivery apps such as Deliveroo and Just Eat. Instead of over-expanding and lowering the quality of their CX (as the Big Four [Deloitte, PwC, EY, KPMG] are inclined to do), the smarter option is to partner with those who have experience of the target market or the technological capabilities to deliver truly individual customer experiences. Accordingly, Deliveroo and Just Eat incorporate payment options such as Apple Pay, ensuring a much smoother and convenient option for both first time and repeat users of their services.

Lack of willingness to be a ‘super creep’ aside, there really is no excuse for modern supermarket brands not to understand us. By catering for their customers’ individual journeys they will drive true brand consideration, engagement and advocacy.

Supermarkets need to get obsessed with us – and fast. Or else we might just find ourselves a new super-clingy supermarket to shop with.

Ally Waring, strategist, and Ronak Mokhtassi, junior social strategist, at RAPP UK.

Digital Transformation Agency

Content by The Drum Network member:

RAPP is a global, data-driven creative community that builds direct, meaningful and high-value relationships between brands and people. At RAPP, with our unrivalled depth of expertise in first-party data, we’ve been observing and cataloguing real people’s lives for 50 years. In today’s world the balance of power has shifted, and customers are in control, which is why we put people and their preferences at the heart of the brand experience. With a talent base of more than 1,600 professionals in 18 offices, we help brands grow the value of real people by understanding what really matters and creating experiences that are right for real people, with real needs, in real time, creating marketing that matters. Our expertise in data and marketing sciences allows us to deliver our clients actionable human insight - an incredible understanding of genuine motivations, observed transactions and actual interactions. Our process reflects how real people think; we balance the left brain and the right, and we do our best work when we bring Precision and Empathy into balance. Building on our data foundation, RAPP delivers a range of capability across social, digital, customer experience and technology.

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