How Major Supermarket Chains Ensure Customer Retention


Customer loyalty is not what it once was. Research firm Access Development reported a massive 79 percent of customers take their business to a competitor within a week of experiencing poor customer service. The estimated cost of customers switching their choice of business due to ineffective solutions and poor services is $1.6 trillion.

How can a major supermarket chain ensure customer retention in a world where customer loyalty is constantly shifting and customers have more options than ever of where to spend their cash? Supermarket chains can boost ROI and profitability by increasing customer retention. Customer loyalty strengthens when reward programs are incorporated into business models. Retention is essential in maintaining customer loyalty and sustaining a healthy business. 

  • Leveraging Personalisation

Supermarkets like Tesco, for example, have thousands of stores and for huge brands like these, coming across as  human and authentic can be a real challenge. Online grocery stores and self-service scanners are convenient, but more shoppers like dealing with other people. Customer service is critical to customer retention and the Tesco marketing division has chosen Twitter as a way of execution with a human touch. This shows additional personality to interactions with customers.

To use this type of retention approach, marketers need to identify audience personas and communicate with them on preferred channels. This can include email or Snapchat too, depending on which channel is most frequented by them. From here, retail chains work on speaking to the customer directly. It is essential to remain part of the messaging and remind customers post the buying experience about the benefits of shopping with the supermarket.

  • A Question of Price

It is a common understanding that shoppers want to save money while opting for major supermarket chains. But they also want to save time. Customers transacting at a cash register are one of the most important parts of the entire purchase cycle, yet long lines can plague retail shoppers. Customers nowadays have higher expectations and  they do not return, if the supermarket cannot provide the convenience and ease of shopping experiences they are looking for.

Nowadays, offering lower prices is not enough to stand out. Despite loyalty schemes and incentives, consumers often do not have allegiance to one supermarket with better value and low prices tempting them elsewhere. Customer satisfaction in supermarket chains depends on how comfortably and easily shoppers can make a purchase. Recent studies show most customers switch between two to three stores, based on the distance to get there and the previous shopping experience.

Therefore, apart from prices and product quality, location and convenience are the factors that determine which supermarket chain customers remain loyal to. Low everyday prices, better value for money and more rewards are some of the reasons why people switch supermarket chains, according to research. The grocery industry is also characterised by tremendous competition and low margins which makes them dependent on a massive volume of sales and an efficient operations model.



Companies can, therefore, compete effectively by offering more loyalty programs and better customer services. Top supermarket chains cater to value-conscious and price sensitive customers through member-only discounts and personalised special offers based on personal shopping habits and preferences. Consumers also want more transparency from the supermarkets they shop with and be consulted about their opinions. Offering client retention programs can play an important role in enabling customers to find and buy the right products and ensure they’ll keep coming back to the supermarket store.

Popular posts from this blog

Why Pathwwway Partners Leading Businesses Worldwide

How to Tap Internet Marketing Services For Generating Revenue

How A Party Planning Business Can Apply Customer Retention Management Techniques