WHAT

DOES
IT MEAN
TO BE A
table o f c o n t e n ts

introduction 3

section 1: the current state of customer loyalty 6

section 2: how to build a community-focused experience 11

section 3: it’s about the people 17

section 4: behind the scenes as a community grocer 21

 intr o d u ct i o n
The future of grocery is changing.

In many senses, it always has been. This industry is anything but stagnant, adapting
to new technology, customer behavior, and retail trends as they evolve. In order to
remain relevant in a digital age, it’s more important than ever for grocers to immerse
themselves in what’s new and what’s next. You must be ready to adjust your business
practices to meet the needs of today’s consumer or be left in the dust.

One of your customer’s most important needs: a sense of connection.

Looking again at our culture’s digital obsession, there is a distinct lack of
person-to-person interaction that occurs in daily life. We have become ingrained
in the use of social media for communication, turning to our screens for connection
that is lacking substance and is, frankly, disappointing.

If the past decade has been about a shift toward digitization, the next decade
will be about a return to authentic connection.

In this eBook, we’ll go into detail about how you can cement your status as a
community grocer in 2020, the initiatives you can put into place for your customers
and employees, and how you can create an in-store experience that will keep your
customers coming back.
L E T ’ S D E F I N E I T.
A definition is always a good place to start. Here’s how we’d break down
this need-to-know term.

community grocer
/kə’myōōnədē - grōsər/
noun
A person who sells food and small household goods while
maintaining a commitment to the wellbeing of their community
and a personalized customer experience.
YOU KNOW YOU'RE A

c o m m uni ty grocer
WHEN...

☐☐ You and your staff know frequent customers by name

☐☐ You believe that an exceptional in-person experience can create

a loyal customer

☐☐ You look for ways to participate in community events

☐☐ You see technology as a way to get to know your customers on

a deeper level

☐☐ You’ve implemented a customer-focused loyalty program

☐☐ You purchase inventory based on a detailed knowledge of your

community’s preferences

☐☐ You’re focused on giving customers a seamlessly fresh experience,

from your products to the cleanliness of your store

☐☐ You know that your employees’ opinions of you are just as important
as your customers’

☐☐ You’ve worked with employees to develop clear career paths

☐☐ Sustainability is at the forefront of your business decisions

1. section one

T H E C U R R E N T S TAT E O F

customer loyalty
T H E C U R R E N T S TAT E O F

c ustomer loyalty

i n t ro d u ct i o n

In a time where options for consumption are endless, community grocers need to real-
ize that loyalty is the most important currency that they can collect from their custom-
ers. According to Narvar, “acquiring a new customer is at anywhere from 5 to 25 times
more expensive than retaining existing ones, and increasing customer retention rates
by just 5% increases profits by 25-95%.” To be a true staple within your neighborhood,
you’ll need to develop a consistent connection with each
of your customers through
a tailored experience that will make them want to keep Loyalty is the
most
coming back.
important currency
Going forward, you can’t expect to build loyalty within your that grocers can
customer base simply by having the best prices or a famil- collect from their
iar name. For a customer to become loyal to your stores,
customers.
they’re going to be looking for a few things in return.

You can use the current state of customer loyalty to

determine what you need to change in your business in order to be up to speed in
2020. These are the factors that you need to take into consideration.

TH E C URRE NT STAT E OF CUSTOME R LOYALTY 7

I n - St o r e Ex p er i en c e

The mass shift toward digitization in retail has left consumers with only a few places
that they can turn to for connection and a unique experience - specifically grocery
stores. To maintain and build customer loyalty within your community, take a look at
these statistics about the importance of a superb in-store experience.

• 74% of consumers think knowledgeable in-store staff is important to their brand

experience (Oracle)

• 56% of Gen Z says a fun in-store experience influences where they shop (NRF)

• 50% of millennials said that positive customer service interactions with a brand
are very important in contributing to their brand loyalty (Morning Consult)

• 50% of baby boomers would be unlikely to return to a store that was messy or
disorganized (Smile)

p e rs o n a l i z at i o n

As a community grocer, your advantage is your ability to know more about your
customers than your competitors. Utilizing technology to give your community per-
sonalized offers not only increases the likelihood of their purchase, it also generates
loyalty.

• 56% of consumers value personalized offers in the retail shopping experience

(Oracle)

• 80% of consumers say they are more likely to do business with a company if it
offers personalized experiences (Edelman)

• Consumers who believe companies are doing very well on offering personalized
experiences shop more than three times more frequently (Epsilon)

TH E C URRE NT STAT E OF CUSTOME R LOYALTY 8

Et h i ca l B u s i n es s P r ac t i c e s

Consumers are no longer solely concerned with how you conduct business with-
in your four walls. Upcoming generations want to know that you’re having a larger,
positive impact on the world at large. Think: transparency, sustainability, and taking a
public stand on societal issues.

• 70% of millennials would buy less from a brand they’re loyal to if they found out
that the brand doesn’t pay their employees well, and 69% would buy less if they
learned the brand relies on unethical labor practices (Morning Consult)

• 52% of consumers state that a key influence on loyalty is knowing that retailers
are acting sustainably, especially for grocery (56%) (Oracle)

• 62% of consumers want companies to take a stand on the social, cultural, envi-
ronmental and political issues they care about the most (Accenture)

p u b li c p r es en c e

There’s a reason it’s called brand loyalty, and not store loyalty. Consumers want to
recognize, understand, and connect with your story and your values. Creating a clear
public presence allows them to do that, and subsequently develop loyalty to your
overall brand.

• 47% of millennial women know their favorite brand’s origin story, 41% know who
founded the brand and 40% follow the founder or someone affiliated with their
top brands on social media (Merkle and Levo)

• When brands develop a history of transparency, about 90% of consumers said

they are more willing to give brands a second chance after a bad experience,
and 85% say they will stick with brands during a crisis when they are more trans-
parent overall (Sprout Social)

• 52% of Millennials, 48% of Gen X and 35% of Baby Boomers feel it’s important
that their values align with the brands they like (Euclid)

TH E C URRE NT STAT E OF CUSTOME R LOYALTY 9

 w h y c o m m u n i t y g r o c e rs w i l l h av e
a n a d va n tag e i n 2 0 2 0

Now that you’ve seen the research on where we stand in 2019, consider this: as a
community grocer you actually have an advantage over big brand stores when it
comes to building customer loyalty.

Not only do you already have a foot in the

door with your community, but nearly 60% “As a community grocer, you
of consumers still prefer to shop locally, actually have an advantage over
according to a Netsertive survey. When it big brand stores when it comes
comes to offering a personalized in-store
experience and creating a public presence to building customer loyalty.”
rooted in your brand values and ethical
business practices, you have a leg up.
You know this community better than any big name store ever could - you’re a part of it,
and you’re genuinely interested in each person’s wellbeing.

The statistics are on your side. All you need to do now is follow our lead.

TH E C URRE NT STAT E OF CUSTOME R LOYALTY 10

2. section two

HOW TO BUILD A

community-focused
EXPERIENCE
HOW TO BUILD A

c o mmunity- focuse d
EXPERIENCE

i n t ro d u ct i o n

2020 will be the year where brick-and-mortars regain their reputation for personal
interaction and unique experiences. While e-commerce still holds the convenience
crown, you have a distinct advantage as a community grocer when it comes to con-
necting with your customers individually.

Think of it this way: your customers are your friends, your neighbors, and your family -
you know them better than any digital platform ever could.

Shouldn’t your store reflect that?

As technology continues to evolve, your customers will look for you to grow alongside
it, offering specific products that pertain to your community based on purchase data
and demographic research, and sending personalized offers.

In 2020, a community grocer needs to be more than just a member of the community
by name - they need to showcase their commitment to their neighborhood through
their business practices and the experience that they create for their customers in-
store.

H OW TO BUILD A COMMUNIT Y-F OC USE D E XPE R IE NCE 12

3 K e ys to a C o m m u n i t y - F o c u s e d E x p e r i e n c e

Creating a community-focused experience doesn’t have to require an overhaul of

your current operations practices. To get a leg up on the competition in 2020, look to
these three factors as your starting point.

personalization

Personalization is the talk of the retail industry this

year, and you can bet that trend won’t disappear
before 2020. Customers expect a tailored experi-
ence (both in-store and online) more than ever be-
fore, choosing to spend their hard-earned money at
retailers that pride themselves on personalization.
To be the best community grocer that you can be in
2020, you’ll need to lean into this trend and seek out
ways that you can make each of your customers feel
as if they are your most important customer. Whether
you start to offer personalized discount offers to your
customers, train your employees to make relevant
product recommendations based on previous shop-
ping history, or implement a “create-your-own meal
kit” bar within your grocery store, personalization
should be the focus of your retail operations initia-
tives over the next year.

H OW TO BUILD A COMMUNIT Y-F OC USE D E XPE R IE NCE 13

Seamless Experiences

Consistency is key when it comes to creating a community-focused experience.

Whether your customers are experiencing your brand through your website, an
app, a physical coupon or ad, or in your store, they should feel like they know and
understand who you are. Technology can be the answer for you here as well - look
into ways that you can use the data that you collect about your customers online
and use it in-store and vice versa. The more that your customer can feel like you’ve
“read their mind” and solved their problem with your assistance, the more they’ll
view your brand in a positive light.

H OW TO BUILD A COMMUNIT Y-F OC USE D E XPE R IE NCE 14

relationship building

We’ve already discussed the importance of customer loyalty to a community

grocer, but a cornerstone of creating that commitment between customer and
retailer is relationship-building. It’s paramount that you and your employees make
a concentrated effort to recognize and get to know repeat customers. Though this
practice can tie back to personalization in some ways, relationship-building goes
deeper, allowing you and your store to become a symbol of consistency and
familiarity for your customers. Ideally, your community will frequent your store
because they look forward to seeing your employees and interacting with them.

H OW TO BUILD A COMMUNIT Y-F OC USE D E XPE R IE NCE 15

 r e ta i l t ec h n o l o gy t o ta k e a d va n tag e o f i n 2 0 2 0

Technology continues to evolve at a fast pace - don’t get left behind! To be an

exceptional community grocer in 2020, look to implement these progressive
examples of retail technology.

LOYA LTY P RO G R A M S G ro c ery e- c o m m erc e Expired Shrink

Loyalty programs aren’t new to
the grocery industry, but they’re
more critical today than ever be-
fore. In 2020, think beyond pro-
grams that simply help customers
rack up points in order to get
discounts. Use them as strategic
data collection programs that will
help you make your store even
more tailored to your community.
+ s m a rt d ev i c e
shopping
Smart devices are already here
- and consumers will be using
them to grocery shop in 2020.
Look for ways to integrate tech-
nology into your store’s online
ordering and delivery services to
make the experience seamless
for your customers.
M a n ag em e n t
Protect your community from
encountering expired products
on your shelves. Using a proac-
tive expiration date management
software will help you stay up-to-
date on your inventory and keep
the focus on fresh.

H OW TO BUILD A COMMUNIT Y-F OC USE D E XPE R IE NCE 16

3.section three

IT'S ABOUT

the people
P e rs o n- to- P ers o n I n t e r ac t i o n s M at t e r

Ah, person-to-person interaction - we just don’t get enough

of you in today’s society! While many brick-and-mortar
retailers worry that consumers are choosing to purchase
through their phones first, the goal of a community grocer
is about more than making a sale. It’s about looking out for
the wellbeing of their community and providing a personal-
ized in-store customer experience.

A recent episode of the podcast Freakonomics put this into

perspective. Mark Gardiner, an advertising executive who
went to work at Trader Joe’s after becoming enamored
with the brand, said, “It really didn’t matter if it was a little
old lady that was looking for one $5 bottle of wine, and if
the wine shipment had just come in the back, I would go
and look through 100 different cases and see if I could find
the one that she wanted, and get her that one bottle of
wine. If I spent 15 minutes doing that, and that made that
customer really happy, then the managers were happy, and
the store was happy.”

At the heart of every successful community grocery store

experience are its people. They are the best representa-
tion of you within your store, the simplest extension of your
brand within your community. They are the faces that loyal
customers remember, and they are a part of every encoun-
ter that your customers have with your store.

Those interactions matter. The relationships that are built

between your employees and your customers are the most
memorable part of your business. While the retail industry
can get caught up in the bells and whistles like in-store ac-
tivations and digital shelf tags, your customers will be more
drawn to great customer service and an excellent attitude
every time. The connections that are created between em-
ployees and customers create roots for your business in
your community. Train your employees how to foster those
relationships, and encourage those who demonstrate an
aptitude for giving your customers an incredible experi-
ence.

IT ’S ABOUT T HE PE O P L E 18
t h e e m p l oy ee ex p er i e n c e

Not only are your employees your direct connection to your community, they are a
part of your community. You should recognize that every individual that works for you
has a network that includes your customers, potential future employees, and business
partners - treat accordingly and they will act as positive advocates for your business.

Check out our top tips on the next page for community grocers who want to give
employees a favorable experience.

IT ’S ABOUT T HE PE O P L E 19
W h at E m p l oy ees Wa n t i n 2 0 2 0

flexibility
One quick way to institute flexibility in a community grocery envi-
ronment is to allow employees to create their own schedules that
accommodate personal commitments like childcare. You’ll show that
you see them as more than employees, but as valuable members of
your community.

connection
It can be difficult for employees at all levels to feel connected to the
corporate side of the company. Try holding digital all-hands meetings
so that all employees can get on board with your company’s goals
and mission.

purpose
Make an effort to communicate the importance of each task to your
employees, including the impact that they have on the customer,
so that employees can understand the purpose behind their daily
routines.

future
Work with your HR team to develop clear career pathways for em-
ployees at every level of the company, and make it a priority to
include professional development in your employee engagement
strategy.

IT ’S ABOUT T HE PE O P L E 20
4.
section four

BEHIND THE

scenes
BEHIND THE SCENES OF A

c o mmunity grocer

i n t ro d u ct i o n

Much of what makes a community grocery store special takes place behind the
scenes, in conversations about operations, community welfare, and employee
engagement. As noted in the beginning of this eBook, a community grocer is more
than just a business owner, they are a critical part of the community, a symbol of
consistency and commitment where other businesses may have a reputation for
being more interested in profit than purpose.

To be a community grocer in 2020, you must look beyond your own P&L statements,
and consider how you can use your unique position to help your community thrive.

BE HIND T HE SC E NE S 22
s u sta i n a b i l i ty i n r e ta i l o p e r at i o n s

Sustainability is a hot topic throughout the retail industry, but grocers have a specific
connection to eco-friendly efforts that pertain to what we eat, how it’s packaged, and
how much of it ends up in the trash.

As a community grocer, sustainability needs to be a major factor in your retail opera-

tions plans for 2020, as your customers will expect a certain level of commitment to
the cause. After all, environmental issues will not only affect the world on a global scale
through events like climate change and overpopulation, they are also likely to affect
each of member of your community on an individual level.

One element of your business that you can focus on to reduce your environmental
impact is food waste. According to a study by the National Resources Defense Council,
American supermarkets throw away 43 billion pounds of food every year. With the help
of innovative technology like expiration date management software, you can reduce
your expired shrink (and your environmental footprint), giving yourself a “green” reputa-
tion and putting your typical shrink loss back on your bottom line.

In addition, environmentally-conscious initiatives like Stop Waste Together, a program

started by Pinpoint Software and Metcalfe’s Markets, allow you to bring your commit-
ment to reducing food waste to the forefront of every purchase. Customers will be able
to recognize the boldly branded Stop Waste Together coupons, understand that the
item that they are purchasing is close-dated, and receive a discount at checkout for
helping your store in your quest to eliminate expired shrink and food waste.

BE HIND T HE SC E NE S 23
 H ow G r o c ers H el p C o m m u n i t i e s i n N e e d

When tragedy strikes, as the result of a natural disaster, or an unfortunate government

event, grocers should be ready to take on the responsibility of looking out for their
friends, family, and neighbors. Here are a few examples of how notable stores have
made a name for themselves as community grocers.

H-E-B Takes on Hurricane Metcalfe's Markets Support

Harvey Government Workers
The Texas grocer has an Emergency Prepared- Affected by Shutdown
ness Department dedicated to creating solutions
When the government was shut down for an
when any natural or manmade disaster could af-
extended period of time in early 2019, Metcalfe’s
fect their business, and their customers’ access to
stepped up to offer their employee discount to
food. When Hurricane Harvey hit, H-E-B provided
government workers who weren’t able to collect a
mobile kitchens and supply convoys throughout
paycheck because of the situation.
the affected region.

Whole Foods Holds Aldi Sends Disaster Relief

Community Giving Days to Give
Back to Local Projects
Community giving days, also known as 5% days,
are designated days where five percent of net
sales are donated to a local nonprofit or educa-
tional organization. The recipient organizations
vary and are specific to each community that
Whole Foods operates in.
Boxes to Those Affected by
Natural Disasters
In partnership with Feeding America, Aldi organiz-
es volunteer events where employees pack disas-
ter relief packages for those who have been dis-
placed from their homes due to natural disasters.
These packages contain shelf-stable products that
can be used by those in need in any community.

BE HIND T HE SC E NE S 24
focusing on fresh as a c o m m u n i t y g r o c e r

Many of the topics that we’ve covered in this eBook (community wellbeing, customer
loyalty, in-store experience, transparency, and retail technology) can be connected
by a simple, and currently very popular concept: focusing on fresh.

Think of it like this: if, as a community grocer, you focus on only having fresh products
in your store, products that are ready for consumption by your customers, you are
looking out for their physical wellbeing, as well as their families’. Customers who don’t
encounter expired food in your store develop a sense of loyalty to you, knowing that
they can count on you to have the safe foods they’re looking for. Their in-store experi-
ence will never be damaged by expired foods, and they’ll never have to question your
transparency surrounding the freshness of your products.

Using Date Check Pro, an expiration date management software, community grocers
like you can proactively identify products on their shelves that are close-dated or
expired, then follow company protocol to discount those items or remove them
before a customer can come into contact with them. Our intuitive technology makes
date checking a simple process for your employees, leading them through a series
of prompts, and ultimately prescribing an action item that results in your shelves
remaining free from expired product. That’s what we like to call a focus on fresh.

To learn more about Date Check Pro, contact us over the

phone at 262-458-2470, email us at info@datecheckpro.com,
or schedule a free demo at datecheckpro.com/demo.
TH E C URRE NT STAT E OF CUSTOME R LOYALTY #