Grocers Take Loyalty Programs to Next Level

loyalty programs

These days, 55% of North American consumers use loyalty points to save money. And, the majority of consumers demand instant price discounts from their loyalty program memberships.

Delivering value is top of mind for grocers today, but fostering meaningful relationships with customers is also imperative during times of rising prices. Eagle Eye’s latest report found that 73% of shoppers rank value as the most important factor in brand choice, which opens a valuable opportunity for loyalty programs.

“More than half (57%) of North American consumers said that instant price discounts are what they want the most from their loyalty program membership,” said Tim Mason, CEO of Eagle Eye. “Clearly, the most visible source of value is discounting, but it is the role of the supermarket and their loyalty program to deliver value on all fronts — from points and rewards, to discounts, to personalized offers.”


Offerings such as member pricing are important ways to simultaneously grow market share and increase loyalty program penetration, according to Mason. He noted that these efforts can also pay off by producing valuable data on customer spending habits, which in turn can help grocers better design and target personalized offers and rewards.

“To take this level of personalization a step further, and engage with a broader range of consumers, brands need to deploy a variety of complementary tactics — including pricing, promotions, loyalty, subscriptions, etc. — which appeal to consumers in different ways,” Mason said.

“When combined, these actions create a mosaic of both digital and in-store attractions which can dramatically broaden the perceived value proposition to a wider audience.”

Proper execution of this strategy across the omnichannel ecosystem can build loyalty even further. The report also found that 84% of consumers believe personalized recommendations will help them save at the shelf, and 71% would either consider buying a product or find the information helpful if they received a promotion or offer while shopping in a store.


Making the most of this opportunity requires real-time omnichannel communication during the shopping journey itself. Loyalty apps can be used to facilitate this strategy. Mason said this strategy requires grocers to not just think about what they communicate, but who they’re targeting and when they send messages.

Using technology like geofencing can ensure messages go out at the perfect moment.

“That’s a big breakthrough and something I call Marketing in the Moment – delivering contextually personalized messages to customers at exactly the right time and in exactly the right place to help drive the behavior you seek,” said Mason.

“This will be an important part of the omnichannel evolution for all retailers moving forward.”

“It’s also the biggest opportunity for supermarket and grocery operators of all sizes to harness the power of more contextual, personalized offers that contain more value to the consumer than price alone.”