Pressure is ramping up in the grocery industry, which is known for razor-thin margins. In recent years, big changes in people mindset and the growth of new technologies are transforming the classic relation "customer in the store" versus a new approach with e-commerce at the centre of purchase's habits.
Amazon is beating hard, with the launch of AmazonPantry, AmazonFresh, AmazonGo, AmazonFresh Pickup and of course its Whole Food acquisition.
The acquisition of Whole Foods provides the tech giant with 465 grocery stores across the U.S. and Canada, as well as convenient locations to use as delivery centers. Amazon GO, the prototype store on the mainoor of its headquarters, has customers grab and go without even having to think about paying—it’s managed automatically. The potential of combining these formats is clear: connecting Whole Foods’ higher-income clientele with one of the most advanced “frictionless” grocery concepts available.
Online sales continue to expand as consumers increasingly adopt a mix and match attitude to grocery shopping. This movement requests a CHANGE in the mindset of traditional retailers towards new Data Driven models, new culture, new talents, new processes, new technologies.
We are not speaking only about technology, but a need to focus towards the Customer Experience, If the technology works, but the customer experience breaks down through poor interface design or order errors, customers might do more than abandon your digital platform—they might quit your brand altogether.
Aside from implementing a solid user experience and commerce platform, which is a challenge itself, fulfilment becomes an issue.
With click and collect, grocers need dedicated people to ensure that orders are picked and packed quickly with high accuracy.
With home delivery, the last mile needs to be managed:
•Outsource delivery?
•Hire a driver?
Thin margins, and pressure on pricing builds a barrier to change. Is this even worth it?
The answer is an urgent yes, and a recent report issued by McKinsey&Company and Coca-Cola Europe suggests that by retaining multichannel shoppers’ overall brand loyalty, the long-term result absorbs the impact and the delivers return. The recommendation is a focus on overall profitability versus the cost of implementation.
In order to take advantage from innovation, grocery retailers will need to combine technologies and solutions bringing together the physical experience with the digital one, with the ability of generate a comprehensive shopping experience, let's look at an example!:
Julie is 41 years old mum always very busy, living in Padova.
She has a lot of interests and shares most of them through Twitter, Pinterest, Facebook, Instagram and more.
She loves sports and food, but she is very busy due to her successful career. She is struggling everyday in order to safeguard her precious freetime.
We are not speaking only about technology, but a need to focus towards the Customer Experience, If the technology works, but the customer experience breaks down through poor interface design or order errors, customers might do more than abandon your digital platform—they might quit your brand altogether.
Aside from implementing a solid user experience and commerce platform, which is a challenge itself, fulfilment becomes an issue.
With click and collect, grocers need dedicated people to ensure that orders are picked and packed quickly with high accuracy.
With home delivery, the last mile needs to be managed:
•Outsource delivery?
•Hire a driver?
Thin margins, and pressure on pricing builds a barrier to change. Is this even worth it?
The answer is an urgent yes, and a recent report issued by McKinsey&Company and Coca-Cola Europe suggests that by retaining multichannel shoppers’ overall brand loyalty, the long-term result absorbs the impact and the delivers return. The recommendation is a focus on overall profitability versus the cost of implementation.
In order to take advantage from innovation, grocery retailers will need to combine technologies and solutions bringing together the physical experience with the digital one, with the ability of generate a comprehensive shopping experience, let's look at an example!:
Julie is 41 years old mum always very busy, living in Padova.
She has a lot of interests and shares most of them through Twitter, Pinterest, Facebook, Instagram and more.
She loves sports and food, but she is very busy due to her successful career. She is struggling everyday in order to safeguard her precious freetime.
One morning, surfing Facebook during a coffee, her attention was captured from a promotion of a new online shopping service offered from Fantasy Retail.
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The same day, she is coming home from a business trip, the husband call her because the fridge is empty but he cannot go out because their daughter is ill. It’s very late, but she remember of the e-commerce service offered from Fantasy Retail and decides to try it
Registration is so easy, and the search of products is smooth and clear.
She choose some fresh food and decide to collect them in the supermarket near home
She choose some fresh food and decide to collect them in the supermarket near home
In the store, the associate receive the order and start the preparation for the pick and collect.
Julie arrives in the store 10 minutes before the closing time, but everything is ready for the picking and so she invests the remaining time keeping additional products. Payment is a fast operation thanks to the POS integration between the commerce and picking system.
She is so excited of the shopping experience and post her satisfaction on Facebook.
She is so excited of the shopping experience and post her satisfaction on Facebook.
Fantasy Retail manage with respect the data of his customer and enrich them with a system of progressive profiling.
Thanks to a sophisticated system of campaign management, Fantasy Retail started to interact with Julie in a 1:1 mode proposing a buying experience in line with her preferences.
Julie received an interesting proposal regarding a spicy recipe, could be a perfect dinner! Decide to place an order from her smartphone choosing the home delivery service.
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The Home Delivery arrived in time and Julie is more than satisfied of the service. She is so happy because she finds the way to safeguard her time and so decides to place a recurrent order. No more empty fridge!
Julie is so amazed from the new on line shopping service that she spreads the word to all her colleagues and friends. Fantasy Retail has now a real ADVOCATE of the brand.
Julie is always in control regarding the communication that she wants to receive from Fantasy Retail, and this build trust versus the brand. The interests change during the life and she can update them regularly.
Innovation is the first rule for Fantasy Retail, a new system of chat bot gives the opportunity to simplify the customer experience, shopping with Facebook messenger.
Multiple journeys, several channels, only one focus: CUSTOMER SATISFACTION!
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