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Can grocery brands thrive in a convenience economy?

Zach Brown | Jan 29, 2019 Zach Brown 01/29/19

The battle for “share of stomach” is on, and the fight to win more (and in some cases, simply retain) customers has only intensified. With a broader range of competitors entering the arena, grocery, quick-service restaurants (QSRs), fast casual restaurants, convenience stores (c-stores), and mass merchandisers are all fighting fiercely to capture “share of stomach.”

More than that, the amount of time Americans spend sitting down and eating a meal has shrunk over the past 10 years, while purchases of prepared food options from grocery stores and food service (carry-out, delivery, or fast food) have risen. Like every other industry, shoppers are hungry for convenience, and their expectations have shifted dramatically. The reality is that consumers are spreading out across channels for food and showing preference to faster, fresher meals.

So how can grocers gain more “share of stomach” and capture more spend in this convenience-driven world? To answer that question, we turned to our market intelligence tool BrandGeek®—the fastest, most accurate source of behavioral data linked to customer feedback in real time. By examining the food spend and dining habits of 20,000 consumers across a variety of industries, we concluded that grocery brands can best gain “share of stomach” by focusing on these 2 things:

  1. Convert infrequent grocery customers into brand loyalists
  2. Increase + improve fresh-and-prepared food offerings as a way to earn share

Our new report dives deep into these 2 topics, providing actionable insight and answering tough questions like:

  • Which industries are currently delivering the most satisfying experience to food + beverage customers?
  • Are consumers sticking with tried-and-true options, or are they willing to try new ways of buying food?
  • What are the top drivers of satisfaction for fresh-and-prepared food customers + are they loyal to one brand?

In upcoming blog posts, we’ll explore these insights and shed more light on this battle for customer loyalty. Until then, check out our report: How grocery can earn “share of stomach” with fresh-and-prepared food.

Zach Brown | VP, Customer Engagement