Insight of the Day: Grocery Shoppers Across Continents Demand Personalized Rewards

Grocery shoppers on both sides of the Atlantic are increasingly demanding personalized rewards and loyalty programs. Retailers like Tesco in the UK and Kroger in the US are leveraging artificial intelligence and advanced data analytics to tailor rewards and promotions to individual customers' preferences and shopping habits.

In the UK, Tesco is implementing hyper-personalization through its Clubcard Challenges, aiming to enhance the customer experience and drive rewards adoption. Similarly, Kroger in the US is focusing on personalization to boost engagement and loyalty, particularly through its Click-and-Mortar™ shopping approach.

Despite the relatively lower digital engagement in grocery shopping compared to retail, rewards programs have proven effective in driving omnichannel adoption. Studies show that a significant percentage of consumers value loyalty schemes, and a majority expect rewards or loyalty programs from grocery retailers.

Furthermore, personalized rewards are gaining traction as they make customers feel understood and valued by retailers. Tailored offers based on preferences and past behaviors not only enhance customer satisfaction but also influence purchase decisions, encouraging shoppers to try new products or make additional purchases.

Overall, the emphasis on personalized rewards reflects a broader trend in the retail industry towards leveraging data-driven insights to enhance the customer experience and foster loyalty in an increasingly competitive market.

Source: https://www.pymnts.com/news/loyalty-and-rewards-news/2024/grocery-shoppers-across-continents-demand-personalized-rewards/